Transportation / Trucking / Garages

Trucking Industry in Canada

Trucking Industry consists of persons and firms engaged in the business of owning and operating motor trucks to transport goods. The industry is composed mainly of 3 elements: contract, private and common carriage.

A contract carrier transports goods for one or a limited number of consignors, according to contractual agreements specifying rates of compensation and other terms.

A private carrier transports his own goods by his own motor vehicle, e.g., raw materials to processing, finished products to market. It is estimated that private carriage is at least as large as common carriage in tonnage moved.

The common-carrier (or for-hire) industry is composed of individuals and establishments that own and operate for-hire motor trucks for the transportation, by road, of any and all goods. Thus, unlike the private or contract carrier, the common carrier serves the general-shipping public. The common-carrier industry provides shippers with full-service, door-to-door delivery.

Regulation and Operation (Canada)
Provincial governments determine most of the operating conditions and the regulatory economic environment for intraprovincial carriers, e.g., driver qualifications, fuel taxes, vehicle weights, vehicle dimensions, rules of the road, vehicle inspection, securement of loads, vehicle licensing and mandated safety equipment. The authority of the federal government to regulate trucking was established (1954) by a Privy Council decision which stated that such jurisdiction applied to the entire operation of the journey when it crossed provincial or international boundaries.

However, since no federal-government regulatory mechanism was in place, jurisdiction was delegated back to the provinces. The only guideline was that each province apply its laws equally to intraprovincial and extraprovincial traffic. As a result of this nonspecific mandate, economic regulation has developed with wide disparities among provinces. When companies or individuals use for-hire trucks to cross a provincial or international boundary, certain federal regulations supersede provincial laws. The federal government also regulates safety standards.

Bobtail or Dead Heading Liability (Truckers)
An independent trucker who leases his or her equipment to trucking firms must have automobile liability insurance to protect against third-party claims arising from driving exposures not related to carrying property in a business or operating under a rental arrangement. While operating under a lease, the trucker normally is protected by the leasee’s insurance. “Bobtail” refers to the operation of a tractor without a trailer, and “dead heading” describes the operating of a tractor with an empty trailer. Risks are not favorable when there is a high percentage of operation outside of lease arrangement.

Cargo insurance
A general term for a marine insurance policy that covers goods being transported by ship, truck, railroad, or airplane. This coverage insures against most perils to which the property may be subject.

Garage Automobile Policy
Garage policies provide varying levels of coverage for physical damage to owned vehicles, Legal Liability physical damage for customers’ vehicles, and Third Party Liability.

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These coverages are available to the following types of businesses:

  • Automobile Dealer and Repair Garage – primarily engaged in selling and repairing automobiles and motorcycles
  • Implement or Off-Road Dealer – primarily engaged in selling or repairing farm implements or off-road vehicles
  • Automobile Repair Garage – primarily engaged in repairing automobiles and motorcycles
  • Automobile Storage Garage – primarily engaged in the business of storing, parking, washing and cleaning automobiles
  • Automobile Service Station – a public gasoline or oil supply station and/or a public service station providing the services of:
    • washing, filling and lubrication, battery, ignition, spring and tire repairs but no engine or body repairs
    • the selling or servicing of incidental automobile parts and accessories, including the calling for and delivery of customers’ automobiles
    • an automatic car was
  • Automobile Open Air Parking Lot – primarily engaged in storing, parking, washing, calling for and delivery customers’ automobiles

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Logistics Providers
Manage the process and expense of the flow of goods as they pass from origin to destination through inventory, transport and distribution including documentation and related material control services, on behalf of the customer.

Motor truck cargo insurance
A form of inland marine insurance covering cargo while being transported in a truck. There are two basic forms. The carrier’s form covers a common carrier’s liability for damage to or destruction of a customer’s property when that property is being transported. It does not insure against any loss for which the trucker is not legally liable. A truck is legally required to carry a minimum amount of coverage. The owner’s form covers truck owners against loss or damage to their own property from covered perils while being transported.

Radius of operation
A factor used in rating commercial trucks based on the distance traveled from the principal garage location. Risks are assumed to be greater for trucks traveling long distances (usually more than 50 miles), because of driver fatigue and higher speeds, than for those confined to a small area. It is customary to measure the radius by a straight line rather than by road miles.

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Insurance Sources
(General – Not necessarily accessible by TCIM)

Truckers

Other Resources

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