INTRODUCTION
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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.
INSURANCE DEFINITIONS
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Refer to Insurance Marketplace (Rough Notes for the following definitions:
- Bobtail or Dead Heading Liability (Truckers)
DEFINITIONS (Cont.)
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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.
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 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
wash
-
Automobile Storage
Garage - primarily engaged in the business of storing, parking, washing and
cleaning automobiles
-
Automobile Open Air
Parking Lot - primarily engaged in storing, parking, washing, calling for and
delivery customers' automobiles
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.
INSURANCE SOURCES
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TRUCKERS
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OTHER RESOURCES
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