Patrick Gagnon, vp of Montreal, Quebec-based Trans-West Logistics, informed TT that demand for capability has spiked forward of every of the tariff deadlines as prospects have moved up supply of products. (Patrick Gagnon)
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PHOENIX — Tariffs have the potential to impression the whole lot from trucking capability and freight lanes to new and used gear prices, and uncertainty over what’s going to occur is introducing new challenges for the trucking business, consultants mentioned.
“Uncertainty will not be our buddy,” mentioned Joe Beacom, vp and chief security and operations officer for Landstar System, throughout a panel dialogue with massive carriers on the Truckload Service Affiliation’s Truckload 2025 annual convention.
Beacom mentioned his firm has made vital investments alongside the Mexico border in Laredo, Texas. He famous that whereas a number of firms have moved operations from China or Asia to Canada or Mexico, that might change if President Donald Trump’s long-threatened tariffs are imposed.
“Long run, the concept of nearshoring remains to be viable and actual, however there’s numerous grey in between,” Beacom mentioned. “The place does the nearshoring happen? That uncertainty is driving folks bananas.”
Landstar ranks No. 10 on the Transport Subjects Prime 100 listing of the most important for-hire carriers in North America and No. 26 on the TT Prime 100 logistics firms listing.
TFI Worldwide, which ranks No. 4 on for-hire TT100 and No. 39 on the logistics TT100, has a big presence in Canada and Mexico. “We’re getting hit on each side,” mentioned Steve Brookshaw, the corporate’s senior govt vp.
To assist perceive the total potential impression of tariffs, Brookshaw mentioned TFI is wanting past particular person merchandise its drivers transfer to the completed items and their final vacation spot. TFI does numerous enterprise within the meals area, he famous, delivering particular person components, corresponding to sugar and chocolate. Nevertheless, if cookie gross sales gradual because of tariffs, producers received’t want as many deliveries of uncooked supplies. “It would hit domestically simply as laborious as the whole lot else,” Brookshaw mentioned.
Whereas talking with Transport Subjects after the panel session, Brookshaw mentioned the on-again, off-again choppiness is the largest problem. “It’s laborious on our guys,” he mentioned.
Patrick Gagnon, vp of Montreal, Quebec-based Trans-West Logistics, informed TT that demand for capability has spiked forward of every of the tariff deadlines as prospects have moved up supply of products. “Some prospects have requested us to maneuver 10 occasions their regular hundreds per thirty days,” he mentioned. “No person has the capability to do it. In any other case, we’d be placing these vehicles to work.”
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Tariffs might shift site visitors patterns. “For many of our prospects, 95% of their enterprise is within the U.S., and they’re both going to boost the worth of the product or discover a new lane in Canada,” Gagnon mentioned. “They both don’t know but, or they know, they usually aren’t telling us.”
Bob Costello, chief economist for American Trucking Associations, mentioned tariffs might drive gear prices larger. About 40% of all Class 7 tractors bought by the trucking business are assembled in Mexico, and plenty of elements move forwards and backwards throughout the border a number of occasions as a part of the manufacturing course of. “There could be this tariff each time it crosses the border,” Costello mentioned.
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Costello says that each time a truck half passes over the border, a tariff could be carried out. (John Sommers II for Transport Subjects)
Tariffs might add $25,000 to $35,000 to the price of a Class 8 tractor. If tariffs add to the price of new gear, Costello expects demand and costs for used vehicles to surge.
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An excellent greater concern is that if tariffs final for a considerable period of time, it will increase the danger of inflation and a macro-recession, seemingly reducing freight volumes. “There are unknowns surrounding tariffs,” Costello mentioned.
To assist put together for tariff deadlines, Gagnon mentioned Trans-West Logistics is educating drivers and has suggested them to not cross the border as soon as tariffs take impact till they’ve the specific approval of the shipper.
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“If the tariffs take impact beginning at midnight, and our driver can’t cross in time forward of that, we’re telling them to attend to cross,” Gagnon mentioned. “If it’s a $300,000 load, and there’s going to be a 25% tariff plus 4% dealer charges, we have to know the shipper pays these.”
Whereas addressing attendees on the convention, John Culp, president of Maverick Transportation and TCA’s 2024-2025 chairman of the board, mentioned there’s little carriers can do. “We are able to’t management whether or not or not these tariffs come or not, so let’s exit and let’s hold doing what we’ve been doing, hold doing it on daily basis, and hold shifting the nation’s freight.”
Maverick ranks No. 76 on the for-hire TT100.
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