Drop trailer fee doubles

A recent fee hike at Marine Atlantic could mean a few extra cents on grocery bills and other goods across the province.

Shane Esson, chair of the Atlantic Provinces Trucking Association, said the trucking industry fully expects that consumers will see the impact of the introduction of a $210 drop trailer management fee, which came into effect on Nov. 26.

The new fee replaces a $101.75 jockey charge trucking companies paid to have drop trailers put on and taken off of the ferry.

The drop trailer service allows trailers to be dropped off at the ferry terminal by trucking companies and loaded aboard the vessel by Marine Atlantic staff.

It's the single largest segment of Marine Atlantic's business, according to company President and CEO Wayne Follett. He said the drop trailer business has increased more the 25 per cent over the last five years.

Mr. Follett said that increase in drop trailer business has led to increased costs for Marine Atlantic, such as the need to add and replace capital equipment, such as shunt trucks, used to deal with drop trailers.

Marine Atlantic also identified several other costs associated with providing drop trailer service that were not covered by the previous jockey charge, including administrative costs; security; shunt trucks and Roloc boxes to move the drop trailers; loading and unloading of the unit on the vessels; and securing the unit on the vessel.

Mr. Follett said the company felt it was necessary to recover a greater portion of those costs.

Mr. Esson said each of the dozen members of the Marine committee for The Atlantic Provinces Trucking Association (APTA) voiced concerns about the increase.

"Members feel that some form of increase was justified, however the amount of increase implemented, the time frame provided and lack of consultation, are concerns our membership share," he said.

Marine Atlantic notified its commercial customers by letter of the price increase on Oct. 2. It was due to come into effect on Oct. 26.

The trucking association requested the increase be delayed until the new year.

"It was important to APTA membership that we have adequate time to re-visit the proposed increases in order to determine the impact these cost increases would have on our members and their customers," said Mr. Esson. "Our membership also must provide its customers with adequate notification and justification of increases."

The association also wanted to consult with Marine Atlantic on the amount of increase required and try to negotiate mutually agreeable options.

Marine Atlantic's board of directors approved a delay until Nov. 26.

Storage fee

The ferry company also instituted a drop trailer storage fee.

The drop trailer management fee covers storage for the first 24 hours after the unit arrives at its destination, but additional amounts will be charged on trailers not picked up by that time. Between 24 and 48 hours will cost $75, and every 24 hours after that will add another $100.

Mr. Follett said more trailers are being left at Marine Atlantic terminals for longer periods of time creating congestion issues. He said problems with trailer storage is more applicable to the North Sydney side of the gulf.

He explained that the companies have little incentive to pick up the trailers, which come back from Newfoundland empty in a timely manner. Drop trailers arriving in Newfoundland are most often full of fright that customers are anxious to get on the road quickly.

Mr. Esson said members also had concerns with the storage fees, but the association recognizes that "a small number of carriers took advantage of the drop trailer option and those carriers should pay more when this occurs."

Other options

Mr. Esson said APTA members will be examining all their options to move freight to and from Newfoundland.

He said members are struggling to cope with decreases in freight volumes as a result of the economic downturn over the past year.

"...so increases of this magnitude result in more serious consideration of competitive modes," he added.

Mr. Esson said the hike in drop trailer fees are in addition to the increase in the Marine Atlantic's fuel surcharge in October, which went from 7.8 per cent to 13.8 per cent.

"In the past year, there have been various service and capacity issues with the aging fleet Marine Atlantic utilizes to provide service between Cape Breton and Newfoundland," he said.

"Our members require a reliable ferry service to and from Newfoundland and in these challenging times, some form of cost certainty is needed."

editor@gulfnews.ca