As a major North American trade war heats up, truckers are already seeing dramatic changes that they say threatens the safety of the supply chain in the U.S. and Canada.
As the Trump Administration levies tariffs or the threat of tariffs against Mexico, China, Canada, and European countries, countries are responding with their own retaliatory actions. In the midst of this flurry of action, the trucking industry is reportedly already suffering from the unprecedented economic uncertainty caused by the fast moving and unpredictable trade war, according to one of Canada’s largest trucking trade groups.
On March 13, the Canadian Trucking Alliance (CTA) issued a dire statement on the state of the North American supply chain based on information supplied by the group’s 5000 member trucking companies.
The CTA members report that “panic moves” are creating cargo storage issues and encouraging reliance on “unscrupulous” trucking companies to meet increased demand. On the other hand, Canadian truckers are also holding off on equipment acquisition and laying off workers, with more layoffs expected in the near future.
See more from the CTA below:
“Depending on the region, carriers who have been surveyed report over the last week say they are either rushing to move as much product stateside to avoid incoming tariffs, have seen demand completely drop off; or are seeing loads cancelled or put on hold in anticipation of the tariffs. Meanwhile, the tariffs announced by Canada in response to US tariffs, are also starting to create similar disruption for US exporters.
Unlike passenger car traffic, the number of commercial truck cross-border traffic hasn’t dropped. However, the so-called “panic moves” in advance of the tariffs are also creating storage issues for customers scrambling to store product they are not accustomed to warehousing.
In some cases, fleets cannot meet this increased demand, resulting in the supply chain having to rely more on trucking fleets who operate in the underground economy and who, by their unscrupulous practices, degrade highway safety and perhaps even pose security threats.
Most fleets throughout Canada are now putting off any capital acquisitions, like trucks and trailers, because of economic uncertainty and the costs associated with tariffs. Carriers are also approaching the management of labour costs in the same way, which has already led to layoffs, with more expected in the near future.“
“The trucking supply chain, which is the backbone of Canada-US trade, is in chaos right now and faces very uncertain future,” said CTA president and CEO, Stephen Laskowski. “We continue to support our provincial and federal leaders who are working diligently to end this untenable situation, and restore order to the supply chain that has benefited US and Canadian citizens for generations.”
