Effects of tariffs

[loaders]

As we approach US Turkey Day and the entire nation, for the most part, takes a time out, I am sure many of us will have a bit more free time. Which is why I am initiating this discussion at this time. I’m sure many of you have been asked this question by friends and family not associated with the transportation industry. “How have the effects of recent US and Canadian imposed tariffs affected your business?”. I have been answering that generally the effects have been minimal. Either our Canadian shippers have absorbed the tariff or their US customers are paying it and passing those costs on to their customers. Some US clients became quite creative and switched their Canadian bound shipments to originate in Mexico from where we brought loads in bond to the Canadian border. Certainly in the first days there was widespread confusion resulting in many shippers just waiting things out and we noticed a definite decline in volume.Also, it seems that once customs brokers were able to fully understand the complexities of these new tariffs, the affect wasn’t quite as grim as many thought. Since then, things have returned to pre-tariff levels. How have you been answering this question?

 

[Rob]

As we approach US Turkey Day and the entire nation, for the most part, takes a time out, I am sure many of us will have a bit more free time. Which is why I am initiating this discussion at this time. I’m sure many of you have been asked this question by friends and family not associated with the transportation industry. “How have the effects of recent US and Canadian imposed tariffs affected your business?”. I have been answering that generally the effects have been minimal. Either our Canadian shippers have absorbed the tariff or their US customers are paying it and passing those costs on to their customers. Some US clients became quite creative and switched their Canadian bound shipments to originate in Mexico from where we brought loads in bond to the Canadian border. Certainly in the first days there was widespread confusion resulting in many shippers just waiting things out and we noticed a definite decline in volume.Also, it seems that once customs brokers were able to fully understand the complexities of these new tariffs, the affect wasn’t quite as grim as many thought. Since then, things have returned to pre-tariff levels. How have you been answering this question?

Thank you for the broker perspective. On the carrier side we are seeing rates in the shitter if you have to rely on brokers for loads you may as well call the repo depot. I have not been offered so many money losing loads since back in 08-09 and if you where their you will remember. Shippers in Canada have slowed dramatically and some have lost quite a bit of their business as with the tariff Canada lost the cost advantage they had in the past (exchange). To say effect is minimal seems pretty demeaning to me if you look at Canada job losses net decrease in productivity etc it is kicking the shit out of us. We are near bottom of industrial nations in all metrics except maybe immigration oh goody e need more of that NOT. So loaders glad your big client is still shipping and not effecting your business that much but tell your friends the truth will ya the tariffs are kicking the shit out of North America, Ask a US trucker about how it is down there as they are far worse than we are read it daily.

 

[EricG]

I agree, the affects on the imposed tariffs hasn't significantly affected our volume or frequency of client business. It seems the local aspects are strong as always. I do a bit of slowdown on some of the inbound FBA shipments we perform last mile services on into AMZN DC's in Ontario. In speaking with a few directly affected clients (primarily white label personal healthcare and cosmetics) they have adjusted supply chains, inteads of shipments from EU, coming to USA, being split, and canadian freight heading to canada from NE USA, its now coming to canada directly from EU Countries. Instead of picking the goods at long haul carriers terminals in the GTA for last mile to AMZN, I'm now picking at YYZ or Ocean warehouses.

Our clients who have longhaul cross border loads, are typically dealing with a carrier directly, or a broker, and chances are that broker is also a client of A&B, thus to don't dive too much into cross border loads with our clients who also utilize our clients as one of their goto broker or carrier.

Yes its a complex world sharing clients.

The upside, we are not dealing with livingston at 2am when a truck is sitting at the border... Somethings its nice just to be that local guy.

 

[senditover]

I wouldn't say things have fully returned to Pre-Tariff levels since obviously our economy took a hit and it was just recently announced that Mexico overtook us as the USs largest trading partner after years of Canada holding the top spot. I do agree though many work-arounds, such as the Mexico to Canada bonded shipments have been utilized, as well we have noticed Canadian clients with US Warehouses have chosen to shift to handling more of their shipments out of their US locations. This obviously achieves more of what was Trump's goal to bring jobs and business back to the US. If our leadership was more willing to open up the banking and telecom industries to US companies then we'd be in a much better place, but of course protecting the corporate interests is more important.

 

[loaders]

Thank you for the broker perspective. On the carrier side we are seeing rates in the shitter if you have to rely on brokers for loads you may as well call the repo depot. I have not been offered so many money losing loads since back in 08-09 and if you where their you will remember. Shippers in Canada have slowed dramatically and some have lost quite a bit of their business as with the tariff Canada lost the cost advantage they had in the past (exchange). To say effect is minimal seems pretty demeaning to me if you look at Canada job losses net decrease in productivity etc it is kicking the shit out of us. We are near bottom of industrial nations in all metrics except maybe immigration oh goody e need more of that NOT. So loaders glad your big client is still shipping and not effecting your business that much but tell your friends the truth will ya the tariffs are kicking the shit out of North America, Ask a US trucker about how it is down there as they are far worse than we are read it daily.

Listen Rob, the purpose for my post wasn’t intended as an overview or critique of the current Canadian economy. It was, as I said, a simple question as to how tariffs have personally impacted your business. The “minimal effect” I referred to was strictly referencing my business, not yours or the economy in general. If you want to rant about how the government is constantly screwing us, (unless of course we had a PC government and then everything would be peaches and cream under PP’s skilful leadership-lol), fine, save it for another post, titled, “the sky is falling”

 

[tasuinam]

I am still to determine whether it's the tariffs or the general state of the overall global economy, but there is a downturn in available freight. Direct shipper loads both cross-border and within Canada. I would say approximately 25% - maybe less.
Reflecting this contract rates are down significantly from two years ago. The spot market, as we all know, is a disaster.

 

[LrgCar]

Thank you for the broker perspective. On the carrier side we are seeing rates in the shitter if you have to rely on brokers for loads you may as well call the repo depot. I have not been offered so many money losing loads since back in 08-09 and if you where their you will remember. Shippers in Canada have slowed dramatically and some have lost quite a bit of their business as with the tariff Canada lost the cost advantage they had in the past (exchange). To say effect is minimal seems pretty demeaning to me if you look at Canada job losses net decrease in productivity etc it is kicking the shit out of us. We are near bottom of industrial nations in all metrics except maybe immigration oh goody e need more of that NOT. So loaders glad your big client is still shipping and not effecting your business that much but tell your friends the truth will ya the tariffs are kicking the shit out of North America, Ask a US trucker about how it is down there as they are far worse than we are read it daily.

Rob, solid perspective, and you’re right about how rough it has been on the carrier side. Rates have dropped to levels we have not seen since the 2008–09 downturn, and when brokers are offering loads that do not even cover operating costs, it puts small and mid-size carriers in a tough spot. A lot of people like to say the impact is minimal, but anyone actually moving freight knows that is not close to the reality. We can fake this elbows up stance as much as we want, but its bad out there.

You are also right that the damage is not limited to Canada. These tariffs are hitting the United States just as hard. Talk to drivers in port cities like Los Angeles, Long Beach, Seattle, Houston, or the East Coast ports, and you will hear the same story. Volumes are unstable, margins are thin, and companies that rely on imports are cutting schedules or redirecting freight in ways that reduce opportunities for domestic carriers. The entire North American supply chain is connected, and when one side gets squeezed, the other side feels it immediately.

Canada’s job losses and productivity issues are real, but US truckers are dealing with their own version of the same struggle. The pressure is everywhere. Even the shippers who look stable right now are not immune. Those “anchor clients” can only absorb these added costs for so long before they start shifting production, sourcing, or routing to avoid the tariffs altogether. Once those adjustments hit, the impact trickles down to carriers and brokers just as fast.

truth is that the tariffs are dragging down the whole industry, and everyone in freight feels it on a daily basis. Hopefully we see some policy adjustments or a market correction soon, because the current environment is not sustainable for anyone moving goods across NA.

 

[Rob]

Listen Rob, the purpose for my post wasn’t intended as an overview or critique of the current Canadian economy. It was, as I said, a simple question as to how tariffs have personally impacted your business. The “minimal effect” I referred to was strictly referencing my business, not yours or the economy in general. If you want to rant about how the government is constantly screwing us, (unless of course we had a PC government and then everything would be peaches and cream under PP’s skilful leadership-lol), fine, save it for another post, titled, “the sky is falling”

My rant as you call it was a direct response to your talking points within the parameters of the question being posted They point that the tariffs have had direct effect on the Canadian job market etc and yes that effects all our businesses except yours?? Ask a Cami or GM or or or worker. But hey your all good and in true Liberal fashion screw the rest. Ask your grandkids what they think of Grandpa supporting the Liberals and putting their grandkids in debt. PS the PC balanced a budget Liberals tripled or is it more now? The number so big cannot remember, Elbows up.

 

[Jim L]

Here is a perfect data driven source that says how bad it really is.
Data is for August - not exactly current. It feels it has gotten markedly worse since the end of August.

Canada in total, down 10% over all modes YOY - $6B+.
Trucks down 7% YOY

Dashboard

data.bts.gov

 

[loaders]

I really have a hard time understanding why some Conservatives are always so mad all the time. After years of the Trudeau era, now you’d think they would be happy. The current Prime Minister is a middle aged, dour looking white man, who can’t dance and wears a blue suit. For goodness sakes, he looks just like them! The other thing that’s hard to understand about the hard core PC’s is how they take everything so personally. I merely asked others on this site how they respond when asked if tariffs have affected their business. Some responders somehow feel the need to blame me for the current state of the economy for simply asking this question. I just follow my father’s advice and I hope my children and grandchildren will do the same. Don’t become dependent on the government to take care of you. That’s your job not theirs. Don’t look to blame others, including the government when you are faced with difficult challenges. Work hard, work smart and try to save a dollar for every dollar you spend. Now, in retrospect, I’m sorry for asking such a sensitive question. Carry on boys, it seems there is no shortage of things to complain about.

 

[BPOVFB]

I mean when you make your money off of paying living wages vs. finding a truck with yesterdays new entrant (which under the liberals, the program was expanded) I could envision you would be a tad frustrated too. I can do with out all the PC garbage (where's everyone on dougie?) but I certainly understand where the frustration is, even if I would rather vote for a urinal cake vs PP.

 

[Rob]

I really have a hard time understanding why some Conservatives are always so mad all the time. After years of the Trudeau era, now you’d think they would be happy. The current Prime Minister is a middle aged, dour looking white man, who can’t dance and wears a blue suit. For goodness sakes, he looks just like them! The other thing that’s hard to understand about the hard core PC’s is how they take everything so personally. I merely asked others on this site how they respond when asked if tariffs have affected their business. Some responders somehow feel the need to blame me for the current state of the economy for simply asking this question. I just follow my father’s advice and I hope my children and grandchildren will do the same. Don’t become dependent on the government to take care of you. That’s your job not theirs. Don’t look to blame others, including the government when you are faced with difficult challenges. Work hard, work smart and try to save a dollar for every dollar you spend. Now, in retrospect, I’m sorry for asking such a sensitive question. Carry on boys, it seems there is no shortage of things to complain about.

sound like a liberal no answer just more blah blah blah. What has Carny done? No blah blah BS a true honest answer of what he has done to help all Canadians? Asking as I am yet to see anything and hoping like hell for him to be good but have seen nada but the same blah blah out of JT's mouth we are gonna but do this and that but do not do shit. PS I do not think PP is the right guy never have but after 11 years of tax on tax after scandal scandal scandal and then while hoping like hell Carney gets some deals done a reporter asks him if he has spoken to Trump and his answer was Are you ready loaders as this was on TV google it as doubt it made the Mexico news. His response on TV Who Cares just what we need in a PM who cares about your largest trading partner. Yes Conservatives are passionate because Liberals are dense and it takes us a lot to get through your thick heads. I see all for naught with you as you answer just like them deflect and change the narrative, Have a great day

 

[Rob]

I mean when you make your money off of paying living wages vs. finding a truck with yesterdays new entrant (which under the liberals, the program was expanded) I could envision you would be a tad frustrated too. I can do with out all the PC garbage (where's everyone on dougie?) but I certainly understand where the frustration is, even if I would rather vote for a urinal cake vs PP.

Ford to me is what the Liberal party was Middle of the road. Done some good and made some mistakes same as any party will do. He is no staunch conservative and takes a beating online being labelled Liberal but I feel that is his middle ground nature. Wants to try an please everyone when we know that is impossible. Overall okay job IMHO so far overall. Have lived through worse back when I was a kid with Liberal minded thoughts voted Bob Rae and lived it ands realized oops better not do that again.

Old saying if you are not Liberal at 20 your have no compassion if still a Liberal at 40 no common sense.

 

[loaders]

“Always mad all the time”………..I rest my case. Hmmm…in the process of finalizing a pipeline deal with the Wicked Witch of the West to placate those Stetson wearing separatists. A 74 billion dollar investment from the UAE. Various trade deals with European and other international trading partners. Restarting negotiations with India, one of the world’s largest economies. But you’re right, he hasn’t knocked on my door either to hand me a nice crisp $100 bill., so yes he hasn’t done anything.

 

[Rob]

“Always mad all the time”………..I rest my case. Hmmm…in the process of finalizing a pipeline deal with the Wicked Witch of the West to placate those Stetson wearing separatists. A 74 billion dollar investment from the UAE. Various trade deals with European and other international trading partners. Restarting negotiations with India, one of the world’s largest economies. But you’re right, he hasn’t knocked on my door either to hand me a nice crisp $100 bill., so yes he hasn’t done anything

Ah Liberals never angry as they are too busy deflecting and defending. a straight answer is not inclusive to them so they use word salads and mumbo jumbo. The pipeline deal close to finalizing??? Says who Carney? cause the tribes on the west coast say it will never happen. PS you have never seen a MAD post from me as if i was mad last thing I want to do is argue with someone I know I never have a chance with as he is Liberal the far superior race, LMAO.. It is okay I get it why the kids call you old fucks boomer. The party of love and inclusion until you say something against them and then you get name called and a new tag. How inclusive Hypocrite

 

[Rob]

@loaders a couple days ago you asked why conservative voters are so mad as you call it. Well me shoot from the hip say it like it is took a couple days now and thought about it, I was having a hard time as I do not like to be mad as you call it and a realization came we are not mad we are passionate about Canada, You see when I see things like I did yesterday on the news it really makes me wonder where Liberals heads are?

So yesterday Carney and Smith made in my mind a wonderful announcement for the prosperity of Canada a new pipeline to tide water, Carney and Smith both gushing with pride to get it done and both giving to make it happen awesome way to go Carney/Smith and Alberta gets what they asked and we as Canadians all do better,

Watching the CBC National as I do every night at 10 ( it puts me to sleep the noise is a fallback of days on road cannot sleep in quiet) I watched the entire cast as well as David Eby do nothing but say this will never happen. Indian chiefs on the coast not on board. Do Liberals hate Canadian prosperity??? Natives claim they are for the environment um that is wonderful maybe start outside your own door. I live near and been on a lots of reservations if the environment is a point they need work at home first just sayin as I always do spade is a spade.

Crime. I have watched Liberal policy turn our Canada into a cesspool if crime all caused by the 1-2% of the population new and old that get caught get bail to do it all again, It seems all of their policy has for the most part seemed like nothing but virtue signalling to piss off the masses so the party could be the saviours of the world. Canada wants to be an environmental leader all good I as well want to leave a planet for future generations as that is the right thing do. Always try and leave anything better than you got it. But to think Canada is going to change the planet and global warming without China India and Russia on board ( US Now but expect change with any new prez) in delusional at best that we matter. Landmass we are yet huge but population is California size,,

Immigration awesome bring hard working honest ladies and gentlemen that want to come to Canada as our forefathers did to build this country welcome. This needs to be done in a manner in which the host country is not over innundated with new arrivals so bad that they have no place to live with no jobs or hope of one. No the Liberals opened the gate and they it flow and we are in a crisis and Liberals seems to deny this. There are an unknown but I would say a minimum of 80000 Indian citizens for the most part running around out there somewhere on expired visa's. The refugees as some call themselves ( real refugees need not read this part) are getting a better deal then our military, vets and seniors and the Liberals are just mum and talking and using the CPP as an asset in the budget sorry Charlie that ain't your money.

Tariffs and Donnie, Don may have caused and uproar and also cause chaos with the tariffs but he did not cause the policies that have us scrambling like chickens with our heads cut off to try and survive them. Are they hurting the trucking biz well we have already done that dance before

I could go down the policy line and we can probably argue back and forth for days and get nowhere but until the left gets the hell out of the way and lets Canada develop its industrial might I FEEL WE ARE DOOMED.

So Loaders I know you are not my biggest fan and that really has no bearing on my life but I wanted all not just you to know why I am well mad as you say.

Have a wonderful day all and enjoy Mexico Loaders it is fucking snowing here prick lol!!!

 

[loaders]

@loaders a couple days ago you asked why conservative voters are so mad as you call it. Well me shoot from the hip say it like it is took a couple days now and thought about it, I was having a hard time as I do not like to be mad as you call it and a realization came we are not mad we are passionate about Canada, You see when I see things like I did yesterday on the news it really makes me wonder where Liberals heads are?

So yesterday Carney and Smith made in my mind a wonderful announcement for the prosperity of Canada a new pipeline to tide water, Carney and Smith both gushing with pride to get it done and both giving to make it happen awesome way to go Carney/Smith and Alberta gets what they asked and we as Canadians all do better,

Watching the CBC National as I do every night at 10 ( it puts me to sleep the noise is a fallback of days on road cannot sleep in quiet) I watched the entire cast as well as David Eby do nothing but say this will never happen. Indian chiefs on the coast not on board. Do Liberals hate Canadian prosperity??? Natives claim they are for the environment um that is wonderful maybe start outside your own door. I live near and been on a lots of reservations if the environment is a point they need work at home first just sayin as I always do spade is a spade.

Crime. I have watched Liberal policy turn our Canada into a cesspool if crime all caused by the 1-2% of the population new and old that get caught get bail to do it all again, It seems all of their policy has for the most part seemed like nothing but virtue signalling to piss off the masses so the party could be the saviours of the world. Canada wants to be an environmental leader all good I as well want to leave a planet for future generations as that is the right thing do. Always try and leave anything better than you got it. But to think Canada is going to change the planet and global warming without China India and Russia on board ( US Now but expect change with any new prez) in delusional at best that we matter. Landmass we are yet huge but population is California size,,

Immigration awesome bring hard working honest ladies and gentlemen that want to come to Canada as our forefathers did to build this country welcome. This needs to be done in a manner in which the host country is not over innundated with new arrivals so bad that they have no place to live with no jobs or hope of one. No the Liberals opened the gate and they it flow and we are in a crisis and Liberals seems to deny this. There are an unknown but I would say a minimum of 80000 Indian citizens for the most part running around out there somewhere on expired visa's. The refugees as some call themselves ( real refugees need not read this part) are getting a better deal then our military, vets and seniors and the Liberals are just mum and talking and using the CPP as an asset in the budget sorry Charlie that ain't your money.

Tariffs and Donnie, Don may have caused and uproar and also cause chaos with the tariffs but he did not cause the policies that have us scrambling like chickens with our heads cut off to try and survive them. Are they hurting the trucking biz well we have already done that dance before

I could go down the policy line and we can probably argue back and forth for days and get nowhere but until the left gets the hell out of the way and lets Canada develop its industrial might I FEEL WE ARE DOOMED.

So Loaders I know you are not my biggest fan and that really has no bearing on my life but I wanted all not just you to know why I am well mad as you say.

Have a wonderful day all and enjoy Mexico Loaders it is fucking snowing here prick lol!!!

We’re not that different actually. We both feel passionately about our country, we both subscribe to the same philosophy that hard work, being honest and treating people fairly (until they prove otherwise) are the keys to success, both personal and professional. Where we diverge is this idea being promoted by the Conservatives, and visible in your comments, that Canada is somehow broken. I don’t believe it is. Are there areas where we could do better, absolutely, but there are many things about our country and to a degree, our economy that are quite positive. As I mentioned earlier, I am not a believer that government, of any political stripe can be the saviour for everyone’s troubles. They simply cannot. There’s no substitute for self reliance and taking care of yourself and your family with as little government intervention as possible.Governments come and go, some do great things, some not. At the end of the day we are the masters of our destiny, not PP, not Mark Carney, not any politician. That’s enough for now, it’s 9:30 am here and already 30 degrees, plus I have to go and deal with a Mexican bank account problem today. That will take at least three hours! God give me strength! Enjoy your snowy weekend.