Every aspect of Canada’s supply chain will be impacted by vaccine mandate for truckers, experts warn

Industry experts are warning that the federal government’s new COVID-19 vaccine mandate for truckers will impact the country’s supply chain and hamper the flow of goods across the border, leading to potential shortages of some products.

Canadian Trucking Alliance (CTA) President Stephen Laskowski told CTV’s Your Morning that the new requirement “will definitely have a negative impact” on the supply chain, causing delays in goods reaching their destinations.

“There isn’t one aspect of the supply chain that won’t be impacted by this measure,” Laskowski said Friday.

According to the Canadian Manufacturers & Exporters (CME) association, the trucking industry moves approximately 80 per cent of the annual $648 billion in Canada-U.S. trade.

Laskowski said some sectors will be harder-hit than others, based on their ability to secure freight transportation with a truck driver who meets the new vaccine requirements.

“Certain parts of our supply chain will be more exposed to this based on their ability to secure freight transportation. So the general… direction is disruption in certain sectors,” he said.

The federal government said Thursday that unvaccinated Canadians will not be exempted from the new federal vaccine mandate for truck drivers coming into effect Saturday.

In a joint statement, Canada’s transportation, health, and public safety ministers said that Canada’s initial policy stands, requiring truckers coming into Canada from the U.S. to be fully vaccinated, or face PCR testing and quarantine requirements.

As things stand, unvaccinated Canadian truckers will have to “meet requirements for pre-entry, arrival and day eight testing, as well as quarantine requirements,” as they can’t be denied entry into Canada.

Unvaccinated or partially-vaccinated non-Canadian truckers will be turned away if they are unable to show proof of immunization or a valid medical contraindication to the COVID-19 vaccines.

In order to qualify as a fully-vaccinated foreign national, non-Canadian truckers have to have completed their authorized vaccine series at least 14 days before entering the country and have submitted the required information through the ArriveCAN app.

The U.S. has planned a similar mandate to go into effect for any driver crossing into the States as of Jan. 22.

The Canadian Trucking Alliance reports that approximately 10 to 15 per cent of drivers in the industry are unvaccinated. Laskowski says this mandate would therefore take an estimated 12,000 Canadian truckers and thousands more from the U.S. off cross-border shipping routes.

He noted that this would be a sharp reduction in workers for an industry that is already facing a labour shortage.

“When these individuals leave the marketplace, there are no backups, those trucks sit,” Laskowski said. “Unlike other sectors where there we can get people to temporarily fill in or fill in period, we can’t, so this will be felt immediately.”

Mike Millian, president of the Private Motor Truck Council of Canada, told CTV News Channel on Thursday that it is important to remember that truck drivers have been delivering necessary supplies amid the pandemic, such as medical gases to hospitals, COVID-19 vaccines, food and fuel, that could have disastrous impacts if halted.

“We already have a fractured supply chain and if we damage that, the supplies that we need for our own health and safety, we’re going to see a shortage,” Millian warned.

Given how much of Canada’s agri-food imports come into Canada by truck, Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, has said that the mandate would be “the first public health measure that could disrupt trade between Canada and the United States since the start of the pandemic.”

Industry experts on the other side of the border are also expressing concerns.

In a statement issued Thursday, Bob Costello, a senior vice president and chief economist at the American Trucking Associations (ATA) urged “leaders in Ottawa and Washington to reconsider these mandates so we can avoid any further economic disruptions.”

Laskowski noted that the trucking industry is not opposed to the vaccine mandate, but was lobbying the federal government to work with supply chains to implement the requirement at a “less disruptive” date than Jan. 15.

“We’re very supportive of the utilization of vaccines. It’s the best tool in the toolbox, but the reality is, the trucking industry is a reflection of Canadian society,” he said.

“Our industry is not immune to vaccine hesitancy shared by Canadians.”

With files from CTVNews.ca’s Rachel Aiello