Topics: Carrier Solutions, Newsletters
We hesitate to devote much space to trade tariffs because it’s an ever-changing situation, kind of a Hokey Pokey — you put a tariff in, you take a tariff out, and you shake the economy all about. Some supply chain stakeholders may feel the need for a stiff drink, but that soon could get more expensive too.
Cass Information Systems is committed to keeping carriers informed, so we are going to serve up the latest tariff developments — at the time of writing — and then move on to other matters affecting carriers.
Tariff Shots: Trump Threatens 200% Tax on European Alcohol
The Trump administration levied 25% tariffs on Canadian and Mexican products — and then two days later delayed the duties on USMCA-compliant goods until April 2. But Canada had already retaliated, implementing its own 25% tariffs on nearly $21 billion worth of products, including orange juice and coffee.
If you think tariffs on orange juice and coffee are bad, brace yourself. President Trump on March 13 threatened a 200% tariff on alcohol from the European Union. The Irish Whiskey Association said in a statement that the tariffs could be “devastating” for the wine and spirits industry.
The European Union had already responded to Trump’s 25% tariffs on aluminum and steel that went into effect March 12 with levies on $28 billion worth of American-made goods.
“Now, if the trade spat continues to escalate, U.S. booze makers may need to contend with even more retaliation,” CNN said.
Tariffs Pause Creates ‘Massive Unleashing of Volumes’
Trucking Dive said the rapidly changing trade situation is giving both carriers and shippers “tariff whiplash.”
“The impact of tariffs on cross-border trade is tremendous. Many big shippers have already stopped shipping,” Justin Danks, Sunset Transportation’s vice president of operations, told Trucking Dive.
Estes Express Lines reported longer delays at border crossings across Canada and into Mexico. Redwood Logistics saw a “massive unleashing of volumes” after the tariffs on Canadian and Mexican goods were paused in hopes that cross-border freight could be moved before they take effect.
Jose Guerrero, the director of U.S. customs operations for Uber Freight, said, “Truckers are seeing an increase in volume at key border crossings, particularly from Mexico, as shippers push to move goods before tariff hikes. This surge can lead to longer wait times and congestion at customs.
“Additionally, some shippers are exploring different customs strategies, such as breaking down shipments into separate components to only pay duties on tariff-affected materials, adding another layer of complexity to cross-border logistics.”
Tariff Concerns, Market Uncertainty Cited for Slow Class 8 Orders
North American Class 8 orders in February were down 31% from January and 38% year over year, and FTR Transportation Intelligence speculated that tariff concerns have carriers holding off on truck investments.
But Carter Vieth, a research analyst at ACT Research, said other factors may play a role, telling the Commercial Carrier Journal that “whether the slowdown in orders is a result of moderating economic activity or a response to the newfound uncertainty remains an open question.”
Dan Moyer, FTR’s senior analyst of commercial vehicles, pointed out “approximately 45% of all Class 8 trucks built for the U.S. and Canadian markets will be subject to the 25% U.S. tariff on all imports from Canada and Mexico and planned Canadian counter tariffs. About 40% of U.S. Class 8 trucks are produced in Mexico, and roughly 65% of Canada’s Class 8 trucks are assembled in the U.S.”
Lawmakers Urged to Help Battle Cargo Theft
Representatives from the Owner-Operator Independent Drivers Association (OOIDA), Tanager Logistics, BNSF, and Academy Sports and Outdoors asked lawmakers to do something about the alarming rise in cargo theft during a Senate subcommittee meeting.
The senators were told that broker fraud, shipment interception, and other forms of cargo theft are costing supply chains up to $35 billion annually.
“Since I began my testimony, a small business trucker has likely fallen prey to fraud that could jeopardize their entire business. That’s how commonplace freight fraud is becoming in trucking,” Lewie Pugh, executive vice president of OOIDA, said.
Adam Blanchard, CEO of Tanager Logistics and Double Diamond Transport, testified that in one incident, “posing as Tanager Logistics, the criminals brokered loads to unsuspecting motor carriers who delivered the cargo, while the scammers pocketed the money. In just one example, they diverted a full truckload of energy drinks, with a retail value well over six figures, over 1,000 miles from Texas to California.”
Congress Revives Bill to Remove Truckers’ Overtime Exemption
The Guaranteeing Overtime for Truckers (GOT Truckers) Act has been reintroduced in both chambers of Congress to remove the trucking industry’s exemption from overtime pay requirements from the Fair Labor Standards Act.
The bill was introduced in the House by Reps. Jeff Van Drew, R-N.J., and Mark Takano, D-Calif., and in the Senate by Sens. Alex Padilla, D-Calif., and Ed Markey, D-Mass.
The legislation, which is supported by such groups as OOIDA, the International Brotherhood of Teamsters, and the Truck Safety Coalition, saw no action in the two previous congressional sessions.
New FMCSA Leader Appointed to ‘Keep America Moving’
President Trump has appointed Adrienne Camire as the acting administrator of the Federal Motor Carrier Safety Administration (FMCSA).
She will be tasked with leading efforts to advance commercial motor vehicle safety, improve the efficiency of U.S. freight and passenger transportation systems, and restore common sense principles to regulatory oversight, according to the FMCSA.
Camire served as chief counsel for the Federal Highway Administration (FHWA) during Trump’s first term.
Transportation Secretary Sean Duffy called Camire “a dedicated leader who brings executive experience, vision, and a strong commitment to safety. I have no doubt FMCSA will continue to make our roads safer and keep America moving under her leadership.”
Drivers Skeptical of Some Safety Systems, Hate Others
When it comes to technology and equipment designed to improve safety, truck drivers are OK with road-facing cameras but hate cameras aimed at them, according to Dan Murray, senior vice president at the American Transportation Research Institute.
Randy Obermeyer, vice president of safety and maintenance for Online Transport, told Transport Topics, “We call them event recorders in an attempt to get away from the negative feeling toward the words camera and video. Many drivers believe that the camera systems give the safety and operations departments a livestream look at what they are doing. That is not the case though.”
The FMCSA has launched a campaign touting the benefits of advanced driver assistance systems (ADAS), and a National Highway Traffic Safety Administration (NHTSA) rule is in the works to require heavy-duty trucks to be equipped with automatic emergency braking (AEB).
“The most despised or abhorred technology out there among truck drivers today is automatic emergency braking — AEB. And it’s because they think the truck takes over,” Murray said.
Madeline Sullivan, Volvo Trucks North America’s product marketing manager, told Transport Topics that the demands of the job can turn drivers against certain technologies, “which is understandable from their perspective, as they are under tremendous pressure to make stops on time and complete the necessary miles within 11 hours of total drive time per day.”
But she added that “more drivers are starting to see the tangible benefits when it comes to protecting their involvement in an accident. Driver feedback is continually considered to ensure that it truly is a driver-assist technology.”
Kenan Advantage Acquires Alabama Dry Bulk Fleet
Kenan Advantage Group (KAG) has acquired Evergreen Transport, a Mobile, Alabama-based dry bulk materials carrier operating throughout the Southeast.
As part of the acquisition, KAG will bring on about 100 drivers and 45 operations employees, 158 tractors, 338 trailers, and four terminal and satellite locations throughout Alabama.
KAG, which touts itself as North America’s largest tank truck transporter, is headquartered in North Canton, Ohio.
ABF Freight Picks Up Two More Yellow Terminals
ABF Freight, the ArcBest-owned LTL carrier, is buying two former Yellow Corp. terminal leases in Washington and Colorado for $11.5 million.
ArcBest previously acquired Yellow properties in Iowa, Arkansas, and Ohio, as well as a terminal lease in Pennsylvania.
ABF added 316 doors in the second half of 2024 and now has more than 9,500 doors nationwide.
Keep a Level Head and Carry On
In uncertain economic times, it’s important to weigh your business options carefully. Cass Information Systems helps carriers do just that. Cass Equipment Finance Solutions help fuel carriers’ growth, enhance efficiency, and drive businesses forward. We work closely with carriers to design flexible, customized solutions that align with their business goals. In addition, Cass Early Payment Solutions provide the steady cash flow needed for smooth day-to-day operations as well as structured financial growth essential for long-term success.
Contact us today to learn more.
