Tariff Deadline Set Off Spike in Cross-Border Trucking Rates, Data Shows
Rates for cross-border trucking to and from the U.S. jumped sharply in the lead up to President Donald Trump's new tariffs on Canada and Mexico, as companies scrambled to accelerate shipments ahead of an expected increase in costs. The brief surge marked a moment of respite for the struggling U.S. trucking industry, which has endured nearly three years of low rates due to weak demand and a surplus of trucks on the road. Once the new tariffs took effect, however, rates are likely to revert to normal as shippers gauge the impact of increased costs on their businesses.
- The sudden spike in cross-border trucking rates highlights the complex web of supply chain dynamics at play when global trade policies shift, underscoring the need for greater investment in logistics infrastructure.
- How will the ongoing volatility in trucking rates affect the competitiveness of U.S.-based companies that rely heavily on international shipments, particularly those in the manufacturing and e-commerce sectors?