Good morning, ladies and gentlemen.
Mine is a small to mid-sized Newfoundland company that has expanded over the past 25-plus years to include five terminals across our province, 100-plus full-time employees and 150-plus pieces of equipment, from tractor-trailers to cars. Three years ago, we started doing speciality services throughout all four Atlantic provinces. By industry standards, we are one of the largest privately owned companies in Newfoundland. I would add to this that our footprint does expand throughout Canada.
What I wanted to talk to you briefly about this morning is the availability of full-time employees wanting to work full time and their expectations from employers. We ourselves have found in the past 10 years—and more so in the past couple of years—that you have to be a psychiatrist and a psychologist, and you have to be a banker. This past winter, because of the price of fuel, we had to advance money to our employees to fill up their fuel tanks. People would say, “Will you pay more money?” There's a little bit more to it. Our average pay per hour is a little over $23. We're not paying minimum wage or that type of thing.
On the cost of operations as it relates to a freight carrier such as Dooley's, statistically, trucking companies run at an operating ratio of 90% to 94%, with big volumes but low margins, yet COVID-19 affirmed how much of an essential service it is. When it's coming to Newfoundland, it moves on a truck or it doesn't move at all. The costs of operations in Atlantic Canada are significantly higher and the margins are thinner.
On threats to profitability and sustainability, there is the cost of equipment. Four years ago, we paid $130,000 to $140,000 for a long-haul tractor. Today, that's a purchase of $246,000 to $295,000. That's in four years, I would add. I just found out from my insurance company yesterday—I didn't read the clause because no equipment was $200,000 or more—that my deductible if we had an accident, which was $5,000, has now gone to $10,000, not talking about the interest rates on financing, which are through the roof.
On parts availability, you could expect inventory in stock or overnight service. Today, you can expect upwards of one or two weeks. The cost of parts has increased significantly. There's downtime, with wheels not turning, and therefore no revenue is being generated.
On government legislation mandated without an understanding of the cost of downloading to the trucking industry, I could speak volumes on that. I know that we've heard so much about the EI insurance. We've heard talk about mandatory paid sick days. That's a discussion that's gone on in the past. I have no problem with that. The problem I have is with somebody who turns around and doesn't understand what's happening in a business like ours or in any other business and says, “You have to pay in 10 days.” That's without an understanding of, number one, where that money is going to come from, and also, if a driver is parked for 10 days, that tractor is generating no revenue, and there are costs associated with that.
You can look at our case, and this case can go right across the country. We have contracts with pharmaceutical companies. We're hauling narcotics and drugs. I can't call up the pharmaceutical company and say, “Look, my driver is sick today. I'm sorry, but we can't make it tonight.” It just doesn't happen. That's reality for us day in, day out.
More important to me right now, and what has had the biggest effect on me in the past 12 months, are the fuel taxes in general and now the carbon tax that's continuing to grow and is added. Basically, it's killing our bottom line. I just did some analysis. In the month of September, I paid out $16,302 in carbon tax. Do the math on that. September is one of our slower months, so when you get into the busier months, that figure is going to go up to $25,000 or $30,000. Just take a 12-month period. My bottom line last year was smaller than that.
Going the route that we're going right now, I'm going to lose money. You turn around and say, “Well, increase prices.” Yes, we're working on that. But some of these contracts were put in place three years ago. They're negotiated every three to five years. You have to work through them and then negotiate them when they come up for renewal.
To bring this closer to home, and I'm going to finish up with this, I don't know if people realize it, but this applies to Newfoundland. If you're bringing a 53-foot trailer load of food into Newfoundland and crossing on the ferry, you're looking at a bill of about $10,000 to $14,000 for that trailer load. That's one way. The reason for that is that there's very little backhaul. In the fishery season there is, but throughout the others there's very little. So you have the Marine Atlantic fees and the fuel surcharges. Now they're going to add on an 80% fuel surcharge on top of that $10,000 bill. When you turn around and have 10,000 dollars' worth of groceries coming in that now costs you $18,000, you have the effect of a ball rolling down the road. It's a snowball that keeps growing.
When I look at this and—