How These Tariffs Will Hit Small Carriers
What’s Happening:
If you’re running loads off the boards, you need to pay attention. The latest round of tariffs between the U.S. and Canada is targeting key imports like steel, lumber, auto parts and raw materials – things that drive a ton of freight movement. These aren’t just numbers on a news report; they shape what loads show up on the boards, what rates get posted and whether you’re scrambling to find work in a few months. It is all about how it impacts freight volumes as a whole, which impacts how the spot market will swing as a result.
What This Means for Owner-Operators and Small Fleets:
The first thing to understand is tariffs increase costs, but they don’t automatically increase your rates. In fact, it usually works the other way around.
- Fewer Loads Coming in From Canada
If tariffs drive up costs, companies could start ordering less. That means fewer inbound loads from Canadian manufacturers, mills and auto plants. If you’re hauling steel, lumber or auto parts – or even general freight tied to those industries – you may notice a slowdown in available loads. - Shippers and Brokers Will Try to Push Rates Down
When freight demand dips, brokers adjust. Large carriers have contracts that shield them from rate fluctuations, but spot market carriers don’t. If fewer imports are coming in and more trucks are chasing domestic freight, rates get pushed down even further. - No Signs of Rates Increasing Anytime Soon
If you’re hoping this tariff situation will force rates up – don’t count on it. Right now, the economy doesn’t show the kind of demand that would make that happen. Freight volume is already weak, and tariffs just add more pressure on smaller players. - Equipment and Repair Costs Are About to Go Up
Tariffs on steel and aluminum mean one thing: higher costs for anything truck-related. If you’ve been holding off on buying a trailer, replacing parts or making repairs, expect those prices to climb. The impact won’t be immediate, but over the next few months, you’ll start seeing it. - Fuel Prices Could Be Next
If energy-related tariffs start coming into play, diesel could go up too. If that happens, your take-home pay shrinks unless you’re running loads that account for fuel costs.
What You Should Do Right Now:
- Watch your lanes carefully. If you’ve been running cross-border or hauling any goods tied to Canadian imports, start looking at alternatives. Don’t wait until it dries up.
- Get aggressive with your costs. Keep fuel expenses, maintenance and deadhead miles tight. Every dollar saved now protects you later. Think efficiency in every move you make. If you don’t need it, you DON’T need it!!
- Pay attention to market trends. If you see fewer loads posted or rates dropping in your regular lanes, you need to adjust before everyone else does. Don’t trust your gut alone! Use market maps!
- If you need repairs or new equipment, move fast. Prices are likely going up – waiting could cost you more in the long run.
The Bottom Line:
Tariffs don’t just affect importers and big corporations. They hit small carriers too. If you’re pulling off load boards, expect more trucks chasing the same freight, rates staying low and operating costs creeping up. The ones who survive this are the ones who stay lean, move strategically and don’t wait until the board dries up to make adjustments.
How to Spot Hot Freight Markets Right Now
If you’re running off the boards, you need to position yourself where the rates are strongest. Right now, certain outbound markets are showing better rates and tighter capacity – meaning more freight and better negotiating power for carriers who get in before the crowd.
Example Market: Houston to New Orleans
Take a look at the data in the image. Darker blue areas indicate stronger rate opportunities, while white areas show weaker lanes with lower-paying freight.
Right now, Houston outbound to New Orleans is paying around $3.84 per mile on a dry van – and it’s not just the rate that makes this lane attractive:
- Truck capacity is tightening. The number of available trucks in the region is decreasing, which means shippers and brokers have fewer options. That’s when rates start climbing for the time being.
- Stronger demand in Gulf Coast ports. Houston remains a critical inbound hub for imports, and freight moving into Louisiana’s industrial and energy sectors is keeping outbound rates strong.
How to Use This Data to Your Advantage
- Move into markets where rates are rising, not falling. If truck availability is dropping and rates are climbing, get positioned there before everyone else does.
- Leverage load board insights. Check the load-to-truck ratios before you haul into a market. If there are too many trucks and not enough loads, you’ll be in a rate squeeze.
- Negotiate smarter. When you see an area like Houston tightening up, push back on low offers. Brokers know they have fewer trucks to work with – use that to your advantage.
What to Avoid
- Low Ratio Load to Truck Markets. These are markets where loads are scarce, and rates are lower. If you haul into these areas, expect trouble getting a strong-paying reload.
- Long deadhead miles. A hot market isn’t useful if it leaves you stranded in a weak reload area. Always plan your next move before taking a load.
The Bottom Line
If you’re not tracking market shifts like this, you’re leaving money on the table. Freight isn’t drying up everywhere – it’s just shifting. The carriers who follow the demand and adjust quickly will be the ones who stay profitable.
Call to Action – Take the Next Step Toward Better Freight
Freight rates aren’t just about luck – they’re about strategy. If you’re tired of chasing low-paying loads and want a real plan for securing direct freight, we have something for you.Join our free webinar: We’re breaking down the first step to locking in direct shippers – so you can stop relying on the spot market and start building steady freight lanes. Click here to register.
Listen to our latest podcast with Vanessa Gant: We sat down with Vanessa Gant to talk about financial strategies for small carriers, managing cash flow and setting your business up for long-term success. Don’t miss this one. Listen now.