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Impact of reduced ferry fares

NOUVELLE

IMPORTANT NOTICE TO ALL CTMA TRANSPORT CUSTOMERS

As you may already know, the new Government of Canada recently announced a reduction in transportation costs for interprovincial ferries in Atlantic Canada, including the Madeleine II. Since August 1, CTMA Ferry has implemented a 50% reduction in fares for passengers and all types of vehicles.

Here’s some key information to help you understand how these changes affect CTMA Transport’s rates:

  • Navigation Madeleine vs. Express CTMA: Shipments to or from Brossard via Navigation Madeleine are not affected by these changes, as they use the Voyageur 2 cargo ship rather than the ferry service.
  • Express CTMA road service via Souris: Rates were adjusted effective August 1. However, the impact is minimal since the ferry fare represents only a small percentage of the total transportation cost of goods.
  • How transportation costs are determined: In addition to ferry fares, transportation costs include fuel, driver and warehouse staff labour, and the cost of purchasing and maintaining the vehicle, trailer, warehouses and more. All of these factors are taken into account when determining the overall transportation cost.
  • Variable reduction rates: Due to these factors, the impact of reduced fares will vary depending on the point of origin and the trucking distance. In other words, the greater the distance, the smaller the ferry cost will be as a portion of overall cost, and the less impact it will have. The reduction also varies depending on the quantity of goods transported.

Here are the applicable reduction percentages:

  • LTL (Less Than Truckload): 2.70% to 6.75%, depending on the point of origin
  • TL (Truckload): 5.15% to 13.10%, depending on the point of origin

A concrete example

For example, shipping three pallets of general goods weighing 500 lb each between Quebec City and Cap‑aux‑Meules will cost $674.97 instead of $695.45 (including the current fuel surcharge), representing a 2.94% discount.

In comparison, shipping three pallets of general goods weighing 500 lb each between Charlottetown and Cap‑aux‑Meules will cost $376.35 instead of $403.53 (including the current fuel surcharge), representing a 6.74% discount.

If you would like more details about these changes or their specific impact on your transportation needs, our team is here to help.

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