Key Developments
Recent data from Trucking HR Canada and Statistics Canada show that the driver shortage improved modestly during the 1st quarter but remains a persistent problem for the industry. Unemployment among truck drivers in Q1 2022 was 4.2%, up slightly from 3.2% in Q4 2021, but well below the average unemployment rate of 6.1% in the Canadian economy. Driver employment in Q1 2022 was down 8% from Q4 but up 2% from the year-ago quarter.
According to a recent study by NACFE, approximately half of all Canadian and U.S. Class 8 diesel trucks used for regional hauls (up to a 100-mile radius) could be replaced by currently available battery-electric models with minimal or no impact on operations, efficiency, or productivity.
A recent study by ATRI concludes that Hydrogen fuel cell trucks are the most environmentally friendly zero-emission vehicle option for long haul trucks. The report showed that while battery-electric trucks have no direct tailpipe emissions, CO2 production associated with vehicle, battery, and electricity production would only result in a 30% decrease in CO2 emissions compared to a standard diesel truck.
Be sure to check out the latest perspectives from BMO economists on the Canadian macro outlook (page 6).
