Cost Structure: Students should use all their previous learning regarding the cost structure of the trucking industry including fixed versus variable cost components, cost of labor and fuel, how this industry can achieve economies of scale, density and scope, the application of rates and tariffs in the industry and if and how they affect the pricing in the provision of service to customers.

The Canadian trucking or motor carrier industry, is an important part of the transportation industry, especially in the current environment driven by the Just-In-Time requirements of many industries and the growth of consum e-commerce. According to the Canadian Encyclopedia, the trucking industry consists of persons and firms engaged in the business of owning and operating motor trucks to transport goods and is composed mainly of 3 elements: contract, private and common carriage. The Canadian Encyclopedia also differentiates the trucking industry as follows: A contract carrier transports goods for one or a limited number of consignors, according to contractual agreements specifying rates of compensation and other terms. A private carrier transports his own goods by his own motor vehicle, E.g, raw materials to processing, finished products to market. It is estimated that private carriage is at least as large as common carriage tonnage moved. The common-carrier (or for-hire) industry is composed of individuals and establishments that own and operate for-hire motor trucks for the transportation, by road, of any and all goods. Thus, unlike the priv or contract carrier, the common carrier serves the general-shipping public. The common-carrier industry provides shippers with full-service, door-to-door delivery, with an enforceable legal obligation to provide