Manitoba Trucking Association

Winter weather in the Prairies has always been a challenge. Road closures are an unfortunate reality. There is no question that these closures cost the trucking industry money.

This was underscored during the winter of 2021-2022, which saw a high number of road closures due to unprecedented weather events. Estimating that cost requires truck traffic data from the closed segment in question, and a few assumptions about the cost of trucking. This was the approach the Manitoba Trucking Association (MTA) took when it estimated the cost to industry of winter highway closures that took place in Manitoba in 2022.

METHOD

Using industry resources, we determined the per-truck cost of road closures to be $86.43/hour. This is a conservative estimate as it does not take into account the increase in fuel prices incurred in 2022. Looking at the big picture, and by using social media announcements issued by the RCMP of road closures and the most recent traffic count information from the Province of Manitoba, we determined an overall cost of road closures last winter
in Manitoba.

ANALYSIS

Table 1 shows the estimated hourly costs collectively borne by truck operators for specific highway segments in Manitoba when that highway segment is closed for one hour.

Taking the segment of the Trans-Canada Highway from Headingley to Portage la Prairie as an example, the estimated hourly truck count of 105 trucks (based on average annual daily truck traffic counts provided by the Province of Manitoba), multiplied by $86.43 (determined by industry resources) results in a one-hour cost estimate of $9,075.37.

 THE COST OF WAITING ADDS UP

Things get more complicated when one considers that highway closings can last several hours. Continuing with our Headingley to Portage la Prairie example, if the closure lasted for three hours, the group of 105 trucks that would have travelled the first hour of the closure would have to wait three hours. The group of 105 trucks that would have travelled the second hour of the closure has to wait for two hours, and so forth.

When we add up all the hours that each truck waits, a three-hour closure results in 630 truck-hours of waiting. Multiply that by the $86.43 hourly cost estimate, and the cost of a three-hour closure at the example location is $54,450.09. If the wait at our example location was four hours, the number of truck-hours of waiting jumps to 1,050, and the total cost to industry jumps
to $90,751.50.

The cost estimates are more dramatic when we look at some of the actual closures on different highway segments, especially the Perimeter Highway that allows Trans-Canada truck traffic to bypass Winnipeg. Table 2 shows the impact of some of the closures that occurred last winter.

These examples show estimated basic costs due to highway closures incurred by truck operators as a group, for which they will not be repaid. Separate from these costs are the costs of delay incurred by those who are waiting to receive their goods in transit, such as the cost of assembly line delays or the cost of spoiled perishable cargo. There is also the cost to the driver and carrier of missed delivery/pick-up appointments and the ripple effects created. For example, a missed delivery means the trailer may not be unloaded in time for a reload appointment.

There are also costs to the drivers facing delays in getting home: missed medical appointments and family time. While we may not be able to put a financial figure on this, these are very real costs to drivers. Of course, we are not advocating for the highways to be open when it is unsafe; we want every driver to make it home safely. Instead, we are advocating for improved winter road maintenance so that closures are reduced, and everyone can make it to their destination in a safe and timely manner.

Also not included in the MTA analysis are the unexpected costs incurred by municipalities and their first responders. Local governments bear the costs of setting up emergency shelters and attending to truck drivers and the driving public stranded on the highway.

All of these costs show why public expenditures on improved snow clearing, highway maintenance, and windbreaks are worthwhile investments that reduce highway closure times and support the economy. The trucking industry keeps
the Canadian economy moving.

The Province of Manitoba has made recent announcements surrounding improvements to winter road maintenance, including an increased number of machinery operators and investment in equipment. We welcome their efforts to return to 24/7 road maintenance in the winter months. The MTA will continue to collaborate with the Province of Manitoba to ensure our highways are maintained in a safe and efficient manner.