The nature of the Company's business means that it is sensitive to general economic conditions although this is mitigated somewhat by the variable nature of many of the Company's costs. The Company is not dependent on any particular industry or customer. Adverse weather conditions such as heavy snow, ice storms, and extreme cold have a negative impact on operating results. Labour represents Vitran's most significant cost and key to service quality. The Company has a history of positive labour relations that will continue to be important to future success. While diesel fuel represents an important cost component to Vitran, the extensive use of owner/operators and the ability to share significant fuel increases with customers reduces this risk.

As at December 31, 2000, 68.1% of debt was fixed exchange rates, mitigating the exposure of the Company's earnings to fluctuations in variable interest rates. Furthermore, the  $47.6 million of U.S. denominated debt acts as a hedge to the foreign currency exposure generated by the Company's U.S. operations.

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Last Updated: May 29, 2001