Canadian Trucking Industry Showing Signs of Growth Despite dip in Load Volumes

The Canadian freight sector experienced a strong performance in July despite a seasonal decline in load volumes. Overall freight volumes were significantly higher compared to the previous year, while the month-over-month decline from June narrowed.

Industry Optimism:
Year-over-year load volumes grew by 12 percent, reflecting the broader strengthening seen in the industry. Month-over-month volumes did decline by 8 percent, but it’s important to note that this was largely driven by the impact of Canada Day and the 4^th of July holiday periods.

July volumes have experienced declines of over 20 percent in recent years because of the seasonal summer holidays and economic conditions. The nominal 8 percent decline last month can be viewed as a positive sign for carriers.

Adjusting for the holidays, daily average load volumes increased compared to the prior month.

Cross-Border:
Cross-border trade remained a key driver, accounting for 62 percent of all freight movements. Loads between Canada and the United States increased significantly, with inbound freight increasing 18 percent and outbound freight growing by 20 percent compared to the same period last year.

Domestic Market:
Domestic freight accounted for the remaining 38 percent of loads. While there was a modest month-to-month increase of 8 percent.

Truck-to-Load Ratio:
The truck-to-load ratio increased to 4.06 in July, but is down from the previous month, again accounting for the holidays. The year-over-year ratios had a very healthy improvement of 12 percent, indicating signs of better market conditions for carriers.

Outlook:
While there was a seasonal pullback in loads, the industry maintained strong year-over-year growth and an impressive daily average increase in load volumes. Recent interest rate cuts may continue to support economic growth and increases in demand for freight services, all positive signs for the Canadian freight market.