The BC Trucking Association (BCTA) says don’t expect to return to pre-COVID-19 business levels for another 10 to 11 months and longer for motor coach companies, who expect to face up to another 20 months of recovery from the harsh changes imposed by the pandemic. Some may not make it that far, reveal BCTA survey statistics.
“The majority of our members support government measures to deal with COVID-19, things like closing the border and following stringent health protocols to keep drivers and customers safe,” president and CEO Dave Earle said June 17.
“What BCTA is looking at now is how to address changes to operations and find ways to help companies survive until BC’s economy starts to recover. Our own concern is that business will take longer to rebound than we’d like, putting some BC road carriers in jeopardy.”
BCTA says motor coach members, in particular, have good cause to worry about fallout from the pandemic.
B.C. as yet has no date for a return to international travel, concerts, or conventions, the lifeblood of seasonal support operations like charter coach services. Trucking companies are affected by steep drops in retail sales, housing starts, exports to the US and imports from China and other global supply chain members.
Results of the third COVID-19 survey indicate trucking companies have, on average, experienced a 23 per cent drop in revenue, a slight improvement of seven per cent from our previous survey in April, when revenue fell, on average, by 30 per cent; motor coach companies saw an average 97 per cent drop in revenue, a slight increase over April (about one per cent); and suppliers and service providers realized a 39 per cent drop in revenue, a further three per cent drop compared to April.
Within the Peace Region, Rosenau Transport says it's experienced severe losses, with five out of 10 business partners closing their doors during the early months of the pandemic.
“It’s had a significant negative impact. We saw a substantial reduction of our business, almost 50 per cent,” said northern B.C. Regional Manager Chris Richards.
Richards said layoffs were given at the start of the pandemic, reducing the workforce for Chetwynd, Dawson Creek, and Fort St. John from 43 to 36.
However, he expects that number to rise back to 40 as the economy recovers.
“It’s been a misconception that we’ve been busy during this time," said Richards, who noted the decline of retail and hospitality industries. "The quantity of deliveries has gone down, a lot of companies have reduced their shipping or eliminated it all together."
Rosenau currently operates 24 trucks in the northeast, down from 29 before the pandemic began in early March. Despite the setbacks, Richards says he’s looking to partners in the oil and gas industry for future revenue, along with forestry.
“There’s been a slow uptick in the industrial market, we’re starting to see a little more activity. So I’m cautiously optimistic,” said Richards.
The BCTA conducted a third COVID-19 impact survey of members between May 27 and June 9, focusing on data for May 2020, and following surveys for March and April.
In this latest survey, looking only at the next three months, 92 per cent of motor coach company respondents indicated they are concerned about the survival of their business (an increase of seven per cent over April).
For trucking, 32 per cent of respondents are concerned about survival (a decrease of five per cent); and for suppliers, the number of respondents concerned for survival in the short term has risen by seven per cent since April, to 25 per cent overall.
For trucking companies:
In April, 53 per cent reported an average 22 temporary layoffs per company, and 24 per cent reported an average of two permanent layoffs. By May, 54 per cent reported nine temporary layoffs per company and 21 per cent reported two permanent layoffs.
For motor coach companies:
In April, 92 per cent reported an average of 41 temporary layoffs, with 15 per cent reporting an average of 17 permanent layoffs. For May, 83 per cent reported an average of 42 temporary layoffs, and eight per cent reported an average of five permanent layoffs.
For suppliers and service providers:
In April, 40 per cent of respondents reported temporarily laying off an average of 34 employees, and seven per cent reported permanent layoffs of an average of 11 employees. For May, 42 per cent of employers temporarily laid off an average of 21 employees, while 16 per cent permanently laid off an average of 27.
