Cargo Jet, a freight carrier, reports a surge in freight that enters Canada directly, bringing first quarter revenue to record levels as other countries try to avoid US tariffs.
The Ontario-based freighter said on April 23 that it generated company record revenues of $250 million ($180 million), an increase of approximately 8% from $231 million in revenue for the first three months of 2024.
“The background to the trade war and the expected decoupling of North American supply chains is expected to see more cargo enter Canada directly from around the world to reduce tariff uncertainty.”
Cargojet operates a fleet of 40 Boeing aircraft (24 767, 17757) for customers such as Amazon, DHL Express, FedEx and other logistics providers.
The strong results of Cargojet came amidst the chaos associated with the TIT tariff dispute announced by the Trump administration, accompanied by trembling and trembling in wild markets in the US economy. In particular, the White House is increasingly showing trends that could ease tariffs imposed on China and other countries.
Tensions between Canada and the US have risen in recent months, with tourism declining whilst North American neighbours and many support the “Canadian Buy” movement.
Cargojet won $48 million in first quarter profit, up from $32.5 million in the previous year. This is an improvement of about 48%.
Carriers say fuel costs are almost 19% lower in the first quarter than last year. Last year, Cargojet's first quarter block time flights were nearly flat, while providing tailbone.
“In spite of growing inflationary pressures, currency volatility and geopolitical tensions, our focus is on helping our customers realize their commitment to their end customers,” says co-CEO Pauline Dillon.
Corporate executives have expressed optimism about new business opportunities that could arise in the coming months as a result of the US trade war.
“We will continue to identify new opportunities and remain at the forefront of helping our customers adapt to the new global supply chain,” says Porteus.
