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A new 50% Section 338 tariff is now in effect on certain goods from Canada, adding another layer to an already complex North American trade environment. While the measures were announced in response to Canadian policies involving U.S. alcoholic beverages, dairy products, and motor vehicles, the products affected extend well beyond those three sectors.
Artificial intelligence is the biggest thing in the digital realm, but like almost everything else in this world, it runs on physical supply chains. That’s important, because the AI sector continues to expand at an extraordinary pace. The Bank for International Settlements projected that the big AI companies would spend $1 trillion on capital expenditures in 2025-26. That kind of money buys a lot of hardware.
Most shippers navigate rocky global trade lanes with a solid strategy on paper, complete with diversified carrier portfolios, flexible contracts, and alternative routings. But if a labor dispute flares up or a key canal restricts vessel drafts, translating those plans into action often stalls.
There is no single blueprint for building an effective drop trailer network. Some shippers prioritize the broadest possible access to drop trailer capacity across a diverse carrier network. Others focus on creating a more consistent trailer experience across their facilities. Most are balancing both, making tradeoffs based on cost, service, labor availability, facility complexity, and how their network needs to flex over time.
The freight market has tested this industry for the better part of four years. Demand has stayed uneven, capacity has shifted, and costs have moved quickly. Across transportation and logistics, companies have had to prove whether their strategy can create value in any environment, not just when the cycle is favorable.
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“The resilience of our carrier community never ceases to impress me,” said Michael Castagnetto, president of North American Surface Transportation at C.H. Robinson. “The past year has brought no shortage of challenges... [and] through it all, these carriers continued to show up for customers, support their drivers, and keep freight moving. Their ability to adapt and deliver in tough conditions is what sets them apart.”
“Pricing has stabilized since the sharp increase we experienced in the first six months of this year, driven by low supply of capacity, legislation and fuel costs,” says Jose Rossignoli, President of Robinson Fresh. “As a result, food companies are engaging with their suppliers and logistics providers to reduce costs. We are advising our customers to plan earlier and secure capacity sooner than in prior years.”
“[AI] provides us not just productivity,” said Dave Bozeman, President and CEO of C.H. Robinson. “This is revenue growth, margin expansion, productivity as well as customer advantage.” He says by speeding up the time it takes to give customers quotes and providing more information to the customer, customers are more likely to submit jobs for quotations to Robinson, giving it more chances to win business.
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