The Rise of the Canadian Loonie, Negative effects of the loonie's rise

The rise of the Canadian dollar has been making some transport industry analysts thinking that it could have a negative effect upon the expected rise in volumes of freight being transported in coming months. The increase in value of the loonie could sabotage the level of exports being moved out of central Canada they believe and this could decrease volumes in the manufacturing sector, which could slow the expected recovery and cause more problems in the movement of transport loads between borders. At present the Canadian manufacturing industry has been steady, but with the rise of the Canadian dollar this could slow down any recovery in the industry by a percent or two.
In addition, they believe the freight turcking industry has undergone a few changes to its overall structure of late in response to the rising loonie, and that the changes could be being supported by the current financial problems in the transport industry. Add to this the decrease in the value of the U.S. dollar of late which has increased the competitiveness of American transports towards their Canadian competition and Canadian carriers are feeling the pinch more than American carriers.
The news isn’t all bad for Canadian carriers, though, as many have reported feeling that the industry will soon rebound along with the Canadian economy and freight volumes will follow suit. Many carriers have reported that demand has increased lately along new found routes of volume increases and the small increases seem to point to sunny days ahead for the industry. This is despite the expected rise in fuel costs in the future and the current high levels of inventory which could be hampering growth slightly. Inventory levels should level off for a few months experts say as most shippers say inventory levels will stay constant for at least a few months.