On January 15, 2022, the Canadian Federal Government put a mandate into effect, requiring all truck drivers entering from America to be vaccinated. Since then, thousands of truck drivers have been forced off the road for refusing to get vaccinated, worsening an already delicate supply shortage in Canada.
The supply crisis began long before a vaccine mandate was officially in place. Trucking organizations reported a steep drop-off in employment, leading to a driver shortage. This in turn, led to shortages of goods brought by truck, and shortages of people willing to take them. Less people driving trucks means less freight moved across the border, and by extension: less product on shelves.
About two thirds of all goods shipped throughout North America are done so via truck. Of these goods, over 70 per cent are classified as grocery items including produce, dairy and grain products. Regarding the driver shortage, if there’s fewer people to drive goods into a country, then of course there’s fewer goods in that country.
The driver shortage problem has created immensely long shipping times and high costs for companies.
Combined with severe weather and vaccine protests, it’s become so complicated to get past the border that some companies are instead shipping their cargo via boat over the Great Lakes to save time and money.
The impending shortages were not unforeseen either. Many trucking organizations have been actively spreading awareness of the gradually declining interest in their industry, some as early as 2010.
Natural factors, such as disasters and severe weather have also played a large role in the supply crisis. For instance, heavy rain and flooding in late 2021 has devastated key transportation routes leading to major ports such as Vancouver’s.
The closure of major roads leads to more delays in shipping by truck and rail, which is causing problems for Canadian based companies who aren’t even sending truckers across the border.
Libra Transport Ltd. is one such Canadian company. Specializing in heavy transport throughout Western Canada, Libra is just one of many businesses impacted by the vaccine mandate and supply crisis.
When asked if the mandate is affecting Libra’s employee retention, General Manager of Libra Transport, Chris Frehlich, says they have experienced the opposite of the employee drop-off they anticipated.
“We’ve gained a couple operators because of the border vaccination mandate… Both these guys are ‘non-vax’, were previously working in and out of the states, are unable to do that now and have partnered with us. So, we’ve ultimately benefited from that.”
Smaller organizations like Libra have seen an increase in operators, where many larger organizations in North America have seen a significant drop. Smaller corporations that operate within their Country’s borders are likely a welcome sight for truckers who don’t want to leave the industry, and don’t wish to get vaccinated. As such, the trucking industry could see smaller companies like Libra growing substantially throughout the pandemic.
Driver interest is one thing impacted by the vaccine mandate, but the bigger issue to the supply chain is driver retention. Many truck drivers feel unsafe or like their needs aren’t met while on the road, and as a result, they leave.
Whether it’s clean bathrooms or human contact, truck drivers rarely get enough of either. Frehlich says genuine care for their employees is what makes current drivers stay, and what sets Libra apart from others in industry.
“It’s not just simple computer dispatch and you go do your work. We work with our people and we care about our people. We want to put our people in a position to succeed and have them feel like they’re supported by the office staff.”
Vaccine mandates, natural disasters and fed-up workers are all factors contributing to the supply chain crisis in North America. The trucking industry has made its stance clear in that further limiting of border access will only worsen their ability to get supplies where they need to go.
As of January 23, a ‘freedom convoy’ of unvaccinated truck drivers started their 6 day journey to Ottawa to protest vaccine mandates and to bring more attention to the issues of the trucking industry. They are expected to reach Ottawa by Saturday, January 29.
There is no industry, that remains undamaged by pandemics. It is our new reality, that we must live with and the first one, who will adopt – will win. A great example is Construction Industry. Construction companies have also experienced labor shortages and recessions. But they managed to deal with these issues by adding IT solutions on board. The time construction project managers saved using e-signing and digital documents contributed a lot to the reconfiguration of the work process and increasing revenues. Maybe transportation reps should follow construction colleagues’ playbooks to deal with supply chain crisis.