Some Good News

My last few articles have been a little bit of doom and gloom. We’ve talked about a trucking recession. We’ve discussed the effect of tariffs on our industry. Finally, we discussed a potential recession in all of Canada. To find some more positive news, I did what many people do these days, and I asked AI for some good news in TRUCKING.

AI tells me there is good news in trucking. There are signs that freight is moving once again. Perhaps this is because several companies have gone out of business and so freight is being spread among fewer trucks. I’m told that freight rates are starting to move in the right direction, meaning upwards, but this is likely a very fragile and delicate balance at this moment. But the good news is, I’ve had people tell me that freight rates have at least stabilized, and they believe rates have started to move in a positive direction.

The American Trucking Association projects growth this year of 1.6%. That is after two years of decline. So that too is good news. I acknowledge ATA is the American side of the border but wonder, will that growth cross the border and come to Canada? That remains to be seen.

One thing for sure; here in Canada interest rates have started to come down. The Bank of Canada stated that the Canadian economy is in a strong position at the start of 2025, that inflation was under control and growth was picking up, spurring hope that Canada had avoided a recession. The Bank of Canada has reduced interest costs several times recently and this must be a great relief to all of us who borrow money. Trucking companies are certainly included with new trucks costing more than $250,000, the borrowing cost are a huge burden. With borrowing costs coming down it will have a positive impact to the bottom line of a trucking company. So that is certainly good news. And for those of us who have a mortgage, it too is great news. Our household income will go just a little bit farther if our mortgage rate is at a lower percentage.

There are also some innovative technologies that are hitting the trucking industry. Trucks are getting better fuel economy and recently I have seen the new Volvo unit that has no exterior mirrors. The mirrors are replaced with cameras. This helps to improve fuel economy, and I was told that the cameras give a better field of vision, thus increasing safety. Of course, I’m all for increasing safety.

Some trucking companies are reporting strong internal growth. I have one customer that continues to grow in both fleet size and the number of trailers that they are utilizing. They’ve chosen to buy tractors and trailers to keep up with the growth of their company, so this is great news.

And lastly, there continues to be a need for truck drivers. With all the talk of new technologies like self-driving trucks, we are still years away from that becoming mainstream. So, for many years yet to come, we will need operators behind the wheel and guiding these 80,000-pound units down the highway. I believe the future of truck drivers continues to be very bright.

So, as uncertain as these times are, please don’t get pulled down by all the doom and gloom. There are trucking companies that are growing and hiring. They are just a little harder to find. Your job is secure because the technology that will one day replace you is many years in the future. It could be 10 to 20 years before self-driving trucks are perfected. So, stay positive! To help with that even more, spring and sunshine and warmer temperatures are finally here so be sure to get outside and enjoy it.

Drive safely,

Chris Harris
CEO & Top Dawg
Safety Dawg Inc.
905-973-7056
chris@safetydawg.com
@safety_dawg (twitter)