The current 2019 Novel Coronavirus pandemic — as well as shortages of magnesium, semiconductors, and rubber — created an unprecedented imbalance in the automobile industry with which demand substantially outpaced supply, which led to significantly higher rates when renting vehicles because of a severe shortage of cars…
Reasons Why Rental Car Rates Will Remain High in North America
…but the recent blockade of trucks at the border which the United States and Canada shares has caused some factories and plants of automobile companies in both countries to either slow down the production of cars or reduce or eliminate the shifts of employees — or temporarily shut down altogether — because they are not receiving the parts which are needed to build vehicles…
…and fewer vehicles being manufactured means two things for the rental car industry: that supplies will likely remain low despite greater demand — and that rates will remain high for the foreseeable future.
Truckers have organized the blockade on the Canadian side of the Ambassador Bridge — which carries approximately 25 percent of all trade between the two countries with approximately $323 million worth of goods on average — demanding an end to the restrictions which Canada has imposed in response to the current 2019 Novel Coronavirus pandemic that has resulted in preventing traffic from crossing the bridge from Detroit in Michigan to Windsor in Ontario. Traffic on the bridge from Canada to the United States has been reportedly still moving.
Other key bridges and crossings between Canada and the United States have also been blocked by truckers since Sunday, February 6, 2022 during what has been called the Freedom Convoy 2022. Protesters have also been blocking the border crossing at Coutts in Alberta for approximately ten days; and greater than 400 trucks have paralyzed downtown Ottawa due to a protest which began late last month in January of 2022 — effectively shutting down the capital city of Canada.
Official Responses to the Protest by Truckers
Joesph Biden and Justin Trudeau — who are the current president of the United States and the current prime minister of Canada respectively — have been in discussions with each other over the blockade of trucks at the border. Jen Psaki — who is the current press secretary for The White House — said at a press conference in the press briefing room at The White House yesterday, Friday, February 11, 2022 that Biden and Trudeau:
…discussed the ongoing blockade of key bridges and crossings between the United States and Canada, including Detroit/Windsor, Sweetwater/Coutts, and Pembina/Emerson.
The two leaders agreed that the actions of the individuals who are obstructing travel and commerce between our two countries are having significant direct impacts on citizens’ lives and livelihoods.
The President expressed his concern that the United States — that United States companies and workers are experiencing serious effects, including slowdowns in production, shortened work hours, and plant closures. The Prime Minister promised quick action in enforcing the law. And the President thanked him for the steps he and other Canadian authorities are taking to restore the open passage of bridges to the United States.
In turn, the Prime Minister also thanked the President and his administration, the Governor of Michigan, and U.S. officials for all of the assistance that we have provided to resolve the disruption. And the two leaders agreed to stay in close touch.
Meanwhile, a judge in Canada granted an injunction which ordered the protesters to leave the bridge — but despite the deadline passing, the number of people protesting has only increased.
An official state of emergency has been declared by Doug Ford — who is the current premier of Ontario — which threatens steep fines of up to $100,000.00 in Canadian dollars and jail time unless protesters end what he calls their “illegal occupation” of the border.
Final Boarding Call
Truck drivers in the United States, France, New Zealand, and other countries worldwide have started to take action in support of the protesters in Canada — which could eventually have negative implications on the global automobile industry…
…which could then affect the worldwide rental car market as well — keeping rates high due to increased demand versus low supply.
As I have said in this article here at The Gate back on Friday, May 29, 2020, this is what happens when populations are locked down for months — especially when so-called “leaders” and “experts” conjure ineffective responses for the sake of preserving their own legacies and attempting to appear as though they are doing something constructive in response to the current 2019 Novel Coronavirus pandemic and other pressing issues…
All photographs ©2013, ©2020, and ©2021 by Brian Cohen.
