Truckers seek new routes

Photo: The Canadian Press

MONTREAL — Trucking companies have begun to halt shipments, mull layoffs and scramble for new routes as tariffs—and their on-again, off-again implementation—wreak havoc on cross-border trade.

The lead-up to U.S. President Donald Trump’s sweeping 25% tariff on Canadian imports as well as retaliatory duties from Canada that took effect Tuesday prompted a surge in deliveries over the past two months as shippers raced to stock up on inventory before the deadline.

That boost—exports to the United States rose 7.5% month-over-month in January to reach a record $58.2 billion, according to Statistics Canada—has brought on a subsequent lull that a drawn-out trade war would exacerbate, Eassons Transport Group CEO Trevor Bent said.

“February was definitely gangbusters,” he said of the company’s food shipments ranging from fish to pies and potatoes.

“There’s certainly going to be an impact,” Bent continued, referring to the tariffs a day after they came into force. “There’s folks cancelling loads to the U.S. right now.”

He said the Nova Scotia-based outfit, which draws nearly 20% of its sales from American distributors and grocers, will be forced to make layoffs if business continues to stall.

“For every million dollars in topline revenue before fuel, it’s roughly four trucks and six employees to take care of that,” he said, referring to prospective job cuts at the 300-tractor fleet.

In a climbdown Thursday afternoon, Trump announced he would again pause some tariffs on Canadian cargo, this time until April 2. Five weeks earlier, he pushed back until March the start date of duties first slated to kick in on Feb. 4.

Trump has dangled the 25% tariff threat over Canada and Mexico since shortly after his election in late November.

On top of White House whims, the fate of truckers rests on decisions by shippers and producers. They’re the ones who decide whether to put a freeze on orders.

They also now decide whether it’s worth the 25% mark-up to ship products past March, with carriers and many sellers in no position to absorb the bulk of that tariff cost.

“There are no margins to concede,” said Mark Seymour, CEO of Kriska Transportation Group. “Our customers are manufacturers, whose customers are consumers. So consumer behaviour has a lot to do with what we do,” he added, calling the impact of a prolonged trade fight “profound.”

The Ontario-based company has 800 trucks cross the border daily carrying paper, food and auto parts. About 95% of Kriska’s $350-million annual revenue stems from shipments to and from the U.S., Seymour said.

“I hope and pray that it doesn’t cascade into a re-engineering of our business. And that could mean a loss of jobs or layoffs,” he said, while stressing that no cuts were planned at the moment. “We can’t predict the unpredictable.”