🎣 The War is On

Happy Hump Day. Trade war tariffs are officially in play, hitting imports from Canada, Mexico, and China. We break down all the information and chaos of the last 48 hours.

Plus:

• ⚓ BlackRock Acquires Panama Canal Ports
• 📊 LTL Carriers See Mixed February Volumes
• 🏛 Trump Announces Office of Shipbuilding
• & More...

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

🐔 WHAT’S COOKIN’ IN FREIGHT

⚓ BlackRock Acquires Panama Canal Ports. Hong Kong-based CK Hutchison Holdings agreed to sell its majority shares in Panama Canal ports to a consortium led by BlackRock, Global Infrastructure Partners, and Terminal Investment Limited. The move follows U.S. concerns over Chinese influence in the strategic shipping route, with Senator Ted Cruz warning of national security risks. Panama recently exited China’s Belt and Road Initiative after U.S. pressure. The sale shifts control of key ports at Balboa and Cristobal, aligning with Washington’s efforts to curb Chinese presence in critical global infrastructure.

📊 LTL Carriers See Mixed February Volumes Amid Soft Demand. LTL carriers reported varying February results as demand remained sluggish. XPO's volumes declined 8.1% YoY, but two-year-stacked comps showed improvement, aligning with its guidance for a mid-single-digit quarterly decline. Old Dominion's volumes fell 7.1%, with revenue per day down 5%, reflecting economic softness and lower fuel surcharges. Saia outperformed its peers, posting a 12.2% volume increase as it aggressively expands its network. Severe winter storms weighed on volumes across the sector, with March expected to provide clearer insight into demand recovery as manufacturing activity shows early signs of stabilization.

🏛 Trump Announces Office of Shipbuilding. U.S. President Donald Trump announced the creation of an Office of Shipbuilding in the White House alongside new tax incentives to revitalize the U.S. shipbuilding sector. The initiative aims to counter China's dominance in global maritime production. Reports indicate the plan includes 18 measures, such as fees on Chinese-built ships and cranes entering the U.S. The move follows bipartisan concerns over China's industrial policies and is part of broader efforts to strengthen American manufacturing amid ongoing Sino-U.S. tensions on trade, technology, and security issues.

Brought to You By WireBee

WireBee is AI-Powered Carrier Communication for Freight Brokers Automate Carrier

• 📞 Communications → Handle high call volumes effortlessly and verify carrier identity in real time.
• 🛡️ Reduce Fraud & Improve Compliance → Block suspicious calls and connect only with trusted carriers.
• 🚀 Increase Efficiency & Speed → Prioritize the best carriers and eliminate wasted time on unqualified leads.

Save time, cut costs, and secure better carriers-faster.

Trade War Begins as Scheduled

As of yesterday, March 4, the tariffs are now a reality. As new duties on Mexico, Canada, and China take effect, companies are scrambling to adjust. Truck rates are reacting, supply chains are shifting, and industries from auto to agriculture are bracing for impact.

However, the news may change today, as the administration has suggested President Trump "will 'probably' announce a compromise with Canada and Mexico soon." But here's the current situation:

Overview of Current Tariffs

• Canada and Mexico: A 25% tariff has been imposed on all imports, with a 10% tariff specifically on Canadian energy products.
• China: An additional 10% tariff has been added to the existing 10%, totaling a 20% tariff on Chinese goods.

Impact on the Freight Industry

The trucking industry is bracing for significant effects due to the new tariffs. Increased costs for imported goods could lead to higher operational expenses, potentially slowing down the freight recovery.

Analysts warn that these measures could disrupt supply chains and escalate equipment prices, posing challenges for logistics and transportation companies.

Affected Goods and Sectors

• Autos: Dealers are warning of up to $12,000 price hikes, and some manufacturers are eyeing shifts to non-tariffed suppliers.
• Trucking: Cross-border freight rates spiked overnight, and the Mexico-Canada detour play is heating up.
• Retail: Companies relying on Chinese imports are racing to renegotiate supply deals before price hikes hit shelves.
• Agriculture: Farmers worry China’s retaliation will gut already thin margins, but alternative markets may soften the blow.
• Lumber: Tariff probes on Canadian lumber are already sending futures prices surging.

Retaliatory Reactions

• Canada: In response, Canada has imposed 25% tariffs on $155 billion worth of U.S. goods.
• China: China has announced retaliatory tariffs ranging from 10% to 15% on U.S. agricultural products, including meats, grains, and dairy, effective March 10.
• Mexico: Mexico is expected to implement countermeasures, including tariffs on U.S. goods, though specific details are forthcoming.

Industry Reactions

The market saw an immediate reaction as stocks tumbled. However, there was some improvement after comments regarding a compromise were made Tuesday night.

What's Next?

Will Mexico & Canada cave to U.S. pressure? Or will Trump's Tariffs be walked back? Talks are ongoing, and "Fortress North America" could be in the works.

Brought to You By TextLocate

TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices.

Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight.

Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.

🌎 AROUND THE FREIGHT WEB

📉 Freight Stocks Struggle. Since the start of the year, major transportation stocks like Schneider, Knight-Swift, and Werner have dropped over 10%.

🚩 Cargo Theft Crisis. Adam Blanchard, Co-Founder and CEO of Double Diamond Transportation & Tanager Logistics, warned Congress about increasing cargo and identity theft, urging the government to “direct FMCSA to remove illegitimate carriers and brokers from the Safer website.”

🤖 Autonomous Freight. Bot Auto has unveiled plans to launch “driver-out” commercial freight operations by 2025 with “continuous autonomous trucking operations between Houston and San Antonio.”

📦 Logistics Expansion. Radiant Logistics has acquired Transcon Shipping. The move will enhance Radiant Logistics' ocean and air freight endeavors, which Transcon specializes in, raking in $75 million in revenue during 2024.

🤝 TPM Conference. S&P Global's premier shipping and supply chain event is wrapping up today as it celebrate its 25th anniversary. The theme of the conference this year was, “Finding Reliability in an Unreliable World.”

🎣 THE FREIGHT CAVIAR CORNER

• The FreightCaviar Podcast: This week, we sat down with Ellen Schwartz, the Founder of Ellevate Financial Services, a financial literacy program that is geared towards teaching people how to set themselves up for success after they get their CDL. Catch the full episode on YouTube, Spotify, or Apple Podcasts.
• The More Freight More Problems Conference (March 11-13) will have brokers, shippers, law enforcement, and industry experts for an in-depth exploration of key issues like theft, fraud, claims, insurance, and more. This conference is a must-attend for anyone looking to stay ahead of the curve on fraud prevention and industry challenges. Don’t miss out—register now!
• Find Shippers Fast: Looking for customers? Check out Shipper CRM, the world's largest shipper database, and apply for access here.

FREIGHT HUMOR