Okay.
I'll provide an overview here with regard to the economic condition of the industry and the specific asks of our sector as a result of COVID-19.
The Canadian trucking industry has worked as hard as it can during the crisis to ensure Canadians continue to have access to essential items such as food and sanitary products. However, it is becoming increasingly clear that, as our industry continues to serve the supply chain and the economy as required, it faces its own unique challenges and rapidly escalating challenges that require tailored solutions to protect the stability of the supply chain during the COVID-19 crisis and into an eventual economic recovery.
The Government of Canada has introduced several much-needed financial measures to assist Canadians and businesses generally suffering financial hardship as a result of this pandemic. Simply put, our sector needs additional focused assistance above what the Canada emergency wage subsidy provides due to the nature of our sector and the critical relationship it has in the supply chain.
Also, the CEWS may work for many sectors, but it simply doesn't stabilize the trucking industry enough, and I'll explain a little bit why that's the case.
To ensure stability in the supply chain, CTA is asking the Government of Canada to introduce a payroll tax deferral program, providing fleets the needed cash flow to maintain operations. Additionally, CTA wants to increase the meal allowance for all truck drivers who are facing rising costs associated with operating during COVID-19.
For our payroll ask, we are asking a three-month deferral with a 12- to 18-month payback, very similar to the GST/HST program introduced earlier.
For the meal allowance for drivers, we are asking for an increase in the daily amount, in percentage, that drivers can deduct from their taxes as it relates to meal costs on the road.
Other organizations like Teamsters Canada; the independent truck drivers association, referred to as OOIDA; the Private Motor Truck Council; and the Women's Trucking Federation of Canada have joined CTA in its call for both the payroll ask and the meal allowance ask.
Why are we asking for these tax measures? CTA recently performed a business condition survey. It will introduce some new findings later on this week. During our first round of the surveys completed in late March and early April, on average carriers experienced a 27% decrease in revenue. Since then we're expecting the number to come in at around 35%.
Carriers are also seeing empty miles increase significantly. “Empty miles” in our sector refers to when a truck is moving empty. Obviously, the goal of any trucking company, business 101, is to move from point A to point B, and from point B back to point A, with goods in their trucks. What's happening during the COVID-19 crisis is that there is product going one way, but nothing coming back. That means that our costs stay the same, and the revenues are dramatically decreasing.
It has been indicated by 63% of our fleets that their customers have asked for payment deferrals. Typically, our carriers would collect from their customers within 35 to 40 days. That's being pushed to 60 to 90 days, and over 90 days.
As I mentioned, we'll have new results of our business conditions survey later this week.
With regard to driver respect and treatment, before COVID-19 the issue of driver respect at shipper and receiver facilities was a significant issue. After the onset of COVID-19, when drivers were regularly refused access to washrooms and could not get food on the road because of drive-through policies that did not accommodate commercial vehicles, CTA launched a hashtag campaign called “Thank a Trucker” to help raise awareness to address these issues.
The response from the Government of Canada, provincial leaders, corporate Canada and regular citizens has been incredible.
Our industry is appreciative of this response, but there is still work to do. We're on the right path and we'll hopefully continue to see improvements in this area.
With regard to crossing the border, as we all know, 70% of our trade moves by truck from Canada into the United States and from the United States back into Canada. The border has undergone significant changes since the restrictions of non-essential traffic. We'd like to thank the CBSA for working with our industry and the trade community. This transition wasn't easy, but they dealt with it very well and worked with our sector and importers and exporters to make it go as seamlessly as possible.
According to the CBSA, the number of trucks currently entering Canada from the U.S. has fallen nearly 33%. This coincides exactly with what we're saying with our business conditions survey.
The CBSA has also worked collaboratively with the Public Health Agency of Canada in ensuring that border interactions with our drivers remain safe from a health perspective. It's been a good process. CTA will continue to work with the CBSA to ensure the Canadian economy moves in a safe and efficient manner across the Canada-U.S. border.
With regard to commercial vehicle licensing, plates, permits and regulatory flexibility, the CTA would like to once again thank Transport Canada, the Canadian Council of Motor Transport Administrators, and all the provinces and territories that have worked with the CTA and its members on regulatory flexibility with respect to extending the validity of licence plates, driver's licences and driver medical exams, in addition to many other compliance-related requirements, such as annual vehicle inspections and accommodations under the International Fuel Tax Agreement.
We would also like to thank the regulatory and enforcement agencies, both in Canada and the United States, for working with us with regard to interactions with our drivers in a safe manner during the COVID crisis.
With regard to PPE, the Minister of Public Services and Procurement announced recently this week that she would bring together a diverse group of 17 private-sector leaders to form the COVID-19 supply council. This group, which includes the Canadian Trucking Alliance, would be tasked with providing the government advice on the procurement of critical goods and services required as a part of the COVID-19 response and recovery efforts. We look forward to working within this committee and council and thank the minister for the invitation.
With regard to securing personal protective equipment for drivers, including face masks, gloves, hand sanitizers and disinfectant wipes, this continues to be a challenge for our sector and others, but we continue to work with it to ensure our drivers are protected.
Thank you, Mr. Chair and committee members. I look forward to any questions.