For the past several months, OTS has been monitoring used tire pick-up service issues in a number of regions across Ontario. When registered Collectors with accumulated tires have attempted to secure pick-up service from a minimum of three OTS-registered Haulers, but have been unsuccessful in doing so, OTS has an obligation under its Agreements to ensure pick-up service is provided within specific timeframes. Resolving these service issues has been a key priority for our organization.
OTS has identified the primary reason for the service issues to be related to temporary disruptions in used tire processing capacity. In Q4 of 2017, OTS implemented a number of initiatives to ease these capacity bottlenecks and these efforts have been largely successful.
In addition, OTS has worked with Collectors experiencing service issues to help them identify alternate service providers able to pick up their accumulated scrap tires. Again, these direct interventions by OTS have been largely successful in resolving the issues experienced by specific Collectors.
Through this process, OTS has identified certain specific zones disproportionally impacted by service issues and will be taking action to address any backlogs that may exist. This letter is to confirm the implementation of Used Tire Hauling premiums in specific zones of the province but generally, in the Pembroke, Peterborough and Kawartha Lakes areas.
Effective March 1st 2018 (retroactive), OTS will pay a Transportation Incentive Premium (TIP) for used tire pick-ups in these specified zones. As with the existing Northern Premiums, these TIPs will be paid directly to the Hauler as part of their monthly claim filing, following a similar process to the one used with OTS’ existing Northern program.
The specific zones and premium rates can be viewed here.
These TIPs will be in effect for pick-ups completed until the end of April 2018. As this date approaches, OTS will continue to monitor market conditions and may choose to reassess the continuance of this TIP program for selected areas.
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