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Oilfield Trucking

Industry Code: 50720

Compulsory
Industry Custom Pricing - ER

This industry describes businesses that operate for-hire trucking equipment for the purpose or ability to transport oversized or overweight loads, and off-highway loads in the oilfield. Services in this industry include for-hire specialized trucking service to and from oil and gas lease sites, not described under Specialized Hauling (industry 50701), or bulk or tank truck hauling (industry 50714).

Operation Details:

Businesses may own or lease trucks, vehicles and equipment and shipping/receiving facilities or terminals. Businesses may opt to subcontract lease operators to provide trucking/delivery services, while only conducting scheduling, dispatching, and billing services in-house. It is recognized businesses will offer and provide pipe storage services, and pipe stringing services to customers as part of the overall delivery contract or agreement.

As most oil and gas lease sites are located in remote areas, vehicles are typically modified to operate in an off-road environment. Vehicles are usually equipped with positive air shut-offs. These attachments prevent engines from running once turned off, particularly in areas of highly combustible/explosive gases. The industry includes rig moving and operating pilot cars, and businesses in this industry may provide some highway hauling services using standard flatdecks and trucks in the course of a move.

Businesses may utilize specialized trucking equipment with tire chains, skid plates, heavy-duty bumpers, winches, cherry pickers, and may employ drivers, labourers (swampers), warehouse/yard staff, forklift drivers, mechanics, dispatch/traffic, sales/estimators, office/administrative staff.

All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

Businesses may tend to have an affiliation with associations that serve the oil sector. Specialized trucking services not related to the oilfield are classified in industry 50701. Log hauling is classified in industry 03100. General for-hire delivery services are classified in industry 50714.

Businesses in this industry may develop proprietary software and offer services online where their customers (shippers) may make selections from listed carriers to coordinate/schedule deliveries or the trucking of goods. Businesses may solely use subcontract drivers or common carriers to provide delivery/trucking services. These companies retain principal responsibility for the shipping and are classified as a trucking business. Proprietary software for transportation logistics can be developed in-house and utilized by customers for an additional fee aside from actual delivery services and are considered part of the trucking business.

Businesses which coordinate transportation services and complete documentation for overseas shipments and charge a fee for services, passing on actual shipping cost without any mark up may be classified as freight forwarding - Industry 86901, provided there is otherwise no freight handing, warehousing or local delivery or pick up, etc.

Industry Custom Pricing: Modified Experience Rating

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. For employers participating in the Experience Rating Plan for Large Employers, the following experience rating features will be used in determining their premium rate:
-Maximum discount or surcharge of 60%
-Maximum participation of 100%
-Maximum experience used of 100%
-Participation rate of 1% for every $2000 in premiums

Premium Rate History:

Activities:

Trucking Services, Oilfield
Oilfield Hauling
Oilfield Trucking Services
Rig Moving

Rate Group History:

This rate group was established in 1991 following the trucking project. Oilfield Trucking (industry 50720) was created in 1993 and is subject to the ENFORM levy.

This industry describes businesses that operate for-hire trucking equipment for the purpose or ability to transport oversized or overweight loads, and off-highway loads in the oilfield. Services in this industry include for-hire specialized trucking service to and from oil and gas lease sites, not described under Specialized Hauling (industry 50701), or bulk or tank truck hauling (industry 50714).

Premium Rate History:

Activities:

Trucking Services, Oilfield
Oilfield Hauling
Oilfield Trucking Services
Rig Moving

Operation Details:

Businesses may own or lease trucks, vehicles and equipment and shipping/receiving facilities or terminals. Businesses may opt to subcontract lease operators to provide trucking/delivery services, while only conducting scheduling, dispatching, and billing services in-house. It is recognized businesses will offer and provide pipe storage services, and pipe stringing services to customers as part of the overall delivery contract or agreement.

As most oil and gas lease sites are located in remote areas, vehicles are typically modified to operate in an off-road environment. Vehicles are usually equipped with positive air shut-offs. These attachments prevent engines from running once turned off, particularly in areas of highly combustible/explosive gases. The industry includes rig moving and operating pilot cars, and businesses in this industry may provide some highway hauling services using standard flatdecks and trucks in the course of a move.

Businesses may utilize specialized trucking equipment with tire chains, skid plates, heavy-duty bumpers, winches, cherry pickers, and may employ drivers, labourers (swampers), warehouse/yard staff, forklift drivers, mechanics, dispatch/traffic, sales/estimators, office/administrative staff.

All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

Businesses may tend to have an affiliation with associations that serve the oil sector. Specialized trucking services not related to the oilfield are classified in industry 50701. Log hauling is classified in industry 03100. General for-hire delivery services are classified in industry 50714.

Businesses in this industry may develop proprietary software and offer services online where their customers (shippers) may make selections from listed carriers to coordinate/schedule deliveries or the trucking of goods. Businesses may solely use subcontract drivers or common carriers to provide delivery/trucking services. These companies retain principal responsibility for the shipping and are classified as a trucking business. Proprietary software for transportation logistics can be developed in-house and utilized by customers for an additional fee aside from actual delivery services and are considered part of the trucking business.

Businesses which coordinate transportation services and complete documentation for overseas shipments and charge a fee for services, passing on actual shipping cost without any mark up may be classified as freight forwarding - Industry 86901, provided there is otherwise no freight handing, warehousing or local delivery or pick up, etc.

Industry Custom Pricing: Modified Experience Rating

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. For employers participating in the Experience Rating Plan for Large Employers, the following experience rating features will be used in determining their premium rate:
-Maximum discount or surcharge of 60%
-Maximum participation of 100%
-Maximum experience used of 100%
-Participation rate of 1% for every $2000 in premiums

Rate Group History:

This rate group was established in 1991 following the trucking project. Oilfield Trucking (industry 50720) was created in 1993 and is subject to the ENFORM levy.