‘No one is happy with the numbers’: Rising fuel prices hurting local logistics firms

CTV’s Sean Irvine speaks to two local logistics companies regarding their struggles as gas spikes to almost $1.80 a litre.

Rising fuel prices are squeezing not just consumers but also the region’s businesses.

This challenge is particularly intense for logistics firms, now feeling the brunt of rising costs.

“The impact of what’s happening in the Middle East right now is absolutely impacting the transportation rates to get goods into the hands of consumers,” said Brent Landers of Couriers Plus.

Landers has operated the business for 20 years. In that time, it has weathered the ups and downs of the economy and a pandemic.

Yet, the unpredictability of recent fuel spikes has created an unnerving new chapter. As a result, Landers finds he has little option but to pass the cost on, despite his best efforts.

For example, a package that cost $20 to ship a few weeks ago now costs $23.

“We have no choice but to continue to increase that fuel surcharge and pass that on to our customers. Who, in turn, have to pass it on to their customers. So, there’s going to be significant upward pressure on prices,” he explained.

Nick Smith, a senior leader at a London trucking firm with 20 units, tells a similar story.

Trisec Logistics has raised its U.S. price per mile from $0.46 to $0.65. Smith says other firms have been forced to do the same.

However, the charge only applies to customer contracts that did not negotiate fixed rates.

“We have a lot of contracts put in for fiscal 2026, and those are set in stone. Those are absolutely killing us. No one is happy with the numbers,” said Smith.

Prices are not only impacting the bottom line but also affecting employment levels.

Just weeks ago, Smith conceded his firm was looking to hire.

“We were, we sure were. But that’s not the case anymore,” he told CTV News.

Landers says he’s already cut back on staff hours.

“We have had to cut back on some part-time employees on the staff or cut back their hours just because we don’t have the volumes that we had before Christmas,” he said.

Still, both firms contend there is still work – at least for now.

However, should prices continue to spike upward, Smith agreed that a call for government aid might be necessary to help logistics firms weather the storm.

“There’s always that thought, but right now everyone’s kind of on their own and we’re all just trying to keep our heads above the water every day,” he said.