from
https://www.bloomberg.com/news/articles/2022-01-17/vaccine-rule-costs-major-canadian-trucking-firm-10-of-capacity

Trucker Vaccine Rule Is Making Freight and Fruit Pricier

Cross-border snags expected to worsen with U.S. adding mandate
‘It’s the consumer that pays for this,’ fruit distributor says
A driver heads back to his truck at the Canada-U.S. border crossing
between St-Bernard-de-Lacolle, Quebec, and New York state on Jan. 14.

January 17, 2022, 10:14 AM PSTUpdated onJanuary 17, 2022, 1:11 PM PST
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New rules requiring truckers to show proof of vaccination when crossing
the Canada-U.S. border are cutting into shipping capacity and boosting
the cost of hauling everything from broccoli to tomatoes.

The cost of transporting produce out of California and Arizona to Canada
jumped 25% last week as fewer trucks are available to cross the border,
according to George Pitsikoulis, president and chief executive officer
of Montreal-based distributor Canadawide Fruits.

“The lower the supply, the higher the price. Ultimately it’s the
consumer that pays for this,” Pitsikoulis said Monday by phone.

Canada implemented new rules on Jan. 15 that require border agents to
turn away unvaccinated U.S. truckers, a move industry executives warned
could slow down supply chains that are already under stress. Canadian
truckers who can’t show proof of vaccination will be required to
quarantine when they re-enter the country from the U.S.

Canada-U.S. Border As Prime Minister Trudeau Demands U.S. Truckers Have
Shots
A driver heads back to his truck at the Canada-U.S. border crossing
between St-Bernard-de-Lacolle, Quebec, and New York state on Jan.
14.Source: Bloomberg
Shipping is expected to get disrupted in both directions, with the U.S.
set to impose its own vaccine mandate on foreign travelers on Jan. 22.
Only 50% to 60% of U.S. truckers are vaccinated, according to an
estimate from the American Trucking Associations.

Bison Transport Inc., one Canada’s largest trucking firms, is poised to
lose 10% of its freight capacity as a result, prompting the company to
boost wages for cross-border drivers and offer signing bonuses of
C$2,500 (about $2,000). Those costs have to be passed on to customers,
Chief Executive Officer Rob Penner said.

Read more: Canada Firms See Higher Inflation With Economy Hitting Limits

“We understood that this would be a challenge for us,” Penner said in a
Monday interview on BNN Bloomberg Television. “We have lost close to 10%
of our overall capacity, with many drivers choosing to opt out prior to
the deadline.”

Winnipeg, Manitoba-based Bison, which is owned by conglomerate James
Richardson & Sons Ltd., has about 3,700 employees and contractors
operating a fleet of 2,100 tractors and 6,000 trailers, according to its
website.

Hungry
The U.S. exports $21B in food to Canada. Here are the biggest categories.
Source: U.S. Department of Agriculture

There are already concerns large companies will have be forced pay up to
secure vaccinated drivers, pushing up freight costs, said Ron Lemaire,
president of the Canadian Produce Marketing Association.

“I have heard anecdotally that truckers are looking to stop hauling
perishable products as there are too many risks if they are delayed in
their delivery,” Lemaire said by email, noting the association will be
closely watching the impact on the supply chain.

Canadian importers rely on trucks to transport fruit that arrives from
South America to ports in the northeastern U.S. A shortage of global
containers and truck drivers is already causing shipping delays of as
long as two weeks and having fewer available truckers will likely make
things worse, said Larry Davidson, president of North American Produce
Buyers Ltd. in Toronto.

The weekend before the vaccine mandate took effect, the company had only
one truck available to pick up 75,000 boxes of grapes in Philadelphia,
he said.

“Thirty-six of 37 loads that were ready for pickup had to wait four or
five days,” said Davidson, whose company ships produce across Canada.
“We’re seeing the domino effect just continue.”

(Updates with new interviews throughout)
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