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Canada caught in the spin cycle
IT’S HARD NOT TO WRITE about the ongoing and ever-changing tariff situation right now. It seems like ages ago that Donald Trump first threatened to impose tariffs on Canada back on Jan. 20, only to put a 30-day hold on those tariffs on Feb. 3.
Later in February, Trump resurrected tariffs on steel and aluminum — something many people forget he did during his first term — so it shouldn’t be too surprising he made this move again.
As a Valentine’s gift to automakers outside the U.S., Trump announced his intention to place tariffs on automobiles and some auto parts. Then, on March 4, tariffs on Canadian, Mexican and Chinese goods took effect.
Tariffs on vehicles were put on hold the following day, and the day after that, many of the tariffs placed on Canada and Mexico were put on hold once again.
After a back-and-forth between Trump and Ontario — which placed retaliatory tariffs on electricity entering the U.S. from the province — Canada announced several retaliatory tariffs of its own.
Then, at the beginning of April, Canada — and the world — braced for Trump’s reciprocal tariffs, which, to the surprise of many, did not include Canada or Mexico.
Now we are seeing Trump’s focus shift to China. After slapping a 145 per cent tariff on goods entering the U.S. in response to China’s retaliatory tariffs on American goods, Trump put a 90-day pause on the reciprocal tariffs he had just announced April 2 — which included pretty much every country across the globe except Canada and Mexico.
So, after all this (and certainly some tariff details were missed (but who could blame anyone for that?), what are we left with other than heads that won’t stop spinning to keep up? Canada currently pays a 25 per cent tariff on steel and aluminum, the same on products that do not fall under the U.S.-Mexico-Canada Agreement (USMCA), another 25 per cent on cars and trucks not built in the U.S., and 10 per cent on energy and potash that don’t comply with the USMCA.
But who knows what will happen next, or when?
In the last editorial, we talked about how Canada was putting its own roadblocks in the way of seamless and affordable trade across the country. Some of those roadblocks have been removed (check out Victoria Jones’ column on page 29), but more can be done to make it easier to move Canadian-made products across the nation.
Canada’s federal election on April 28 will either mark a pivot point for the country — with a new government and changing positions on several issues — or see a continuation down the same path. Whether that path is a positive direction is up to each individual voter.
One thing, however, is for certain: the topic of trade won’t go away anytime soon.
WestJet grounds dedicated cargo operations
U.S. to impose reciprocal tariffs, but Canada mostly spared
By Inside Logistics Staff
THE UNITED STATES will impose reciprocal tariffs on Canadian and Mexican imports that fall outside the scope of the U.S.-Mexico-Canada Agreement (USMCA), while sparing most other goods from additional levies.
U.S. President Donald Trump announced Tuesday that a range of countries will face new reciprocal tariffs on imports into the U.S. While Canada and Mexico will be largely exempt under USMCA, products not covered by the trade agreement will be subject to tariffs — including Canadian automobiles, which will face a 25 per cent duty starting April 3.
Trump said the new measures will take effect immediately. A baseline global tariff of 10 per cent will also be
implemented across all imports, though Canadian goods not under USMCA will be subject to a 25 per cent tariff, and a 10 per cent rate will apply to energy and potash products.
Trump further accused Canada of applying tariffs of 250 to 300 per cent on American dairy products — a claim that overlooks the fact that such duties only apply when imports exceed limits set under a bilateral agreement.
Other countries on the U.S. tariff list include China, the European Union, Vietnam, Taiwan, Japan, India, South Korea, Thailand, Switzerland, the United Kingdom, South Africa and Brazil.
Canada to impose counter-tariffs on U.S. auto imports
Canada is imposing new tariffs on American-made automobiles in response to what Prime Minister Mark Carney described as “unwarranted and unjustified” U.S. trade actions.
The federal government is introducing a 25 per cent tariff on fully assembled vehicles imported from the United States that do not meet the requirements of the Canada-United States-Mexico Agreement (CUSMA). An additional 25 per cent tariff will apply to non-Canadian and non-Mexican content used in vehicles that are otherwise CUSMA-compliant.
Carney said all revenue generated from the tariffs will be directed toward supporting Canadian auto workers.
“The global economy is fundamentally different today than it was yesterday,” he said. “We must respond with purpose and force, and take every step necessary to defend Canadian workers and businesses from the unjust tariffs imposed by the United States — including those targeting
“We must respond with purpose and force, and take every step necessary to
defend
Canadian
workers and businesses from the unjust tariffs imposed by the United
States — including those targeting the auto sector,” – Prime Minister Mark Carney.
the auto sector.”
The American tariffs, announced Wednesday, apply to a range of imports, including automobiles, steel and aluminum. In response, Ottawa also unveiled measures to assist affected workers and businesses, including adjustments to employment insurance rules and tax deferrals.
Photo courtesy of USMCA.
Tariff threats put Canada-U.S. supply chain in ‘panic mode,’ says CTA
The Canadian Trucking Alliance (CTA) says the looming threat of tariffs is causing significant disruption to the Canada-U.S. supply chain, leaving trucking fleets and their customers facing widespread uncertainty.
According to feedback from its more than 5,000 member companies, the CTA reports that carriers are either rushing to move goods south before tariffs are imposed, seeing a decline in demand, or dealing with cancelled shipments. The disruption is also creating storage challenges for businesses unaccustomed to holding excess inventory.
“The trucking supply chain, which serves as the backbone of Canada-U.S. trade, is in turmoil right now and faces a very uncertain future,” said CTA president and CEO Stephen Laskowski.
Many Canadian carriers are postponing capital investments in trucks and trailers, and some have already started layoffs, with more anticipated. The CTA warns that these disruptions could lead to greater reliance on operators in the underground economy, potentially posing safety and security risks.
Laskowski added that the alliance supports government efforts to resolve the situation and restore stability to cross-border trade.
Calgary strengthens local procurement to counter U.S. tariffs
The City of Calgary is ramping up its commitment to buying local and Canadian in response to newly imposed U.S. tariffs, enhancing its Social Procurement program to better support small and medium-sized businesses.
As of March 31, the city increased the weighting of its Social Procurement Questionnaire to 10 per cent for major competitive procurements of goods — and, where possible, for services and construction as well. For smaller purchases, Calgary will aim to gather all three required quotes from local vendors, or prioritize Canadian suppliers if local options are not feasible.
“We are making conscious decisions to buy local or Canadian where we can, to decrease our reliance on U.S. suppliers and further support our economy,” said Amit Patil, the city’s director of supply management.
The shift is part of Calgary’s broader Supply Chain Resilience program, which was launched in response to previous supply disruptions and aims to address ongoing risks such as tariffs and volatile commodity prices.
Currently, about 95 per cent of the city’s contract value is with Canadian suppliers, and roughly 70 per cent of that is within Alberta.
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EDC launches Trade Impact Program to support Canadian exporters
Export Development Canada (EDC) has rolled out a new initiative to help Canadian businesses manage persistent economic uncertainty and trade-related challenges.
The Trade Impact Program will provide up to $5 billion in additional support over the next two years, offering loans, guarantees, working capital and insurance products.
The initiative is aimed at helping companies navigate supply chain disruptions, financial volatility and shifts in the U.S. economy. Many are expected to seek increased working capital, accounts receivable insurance and guidance on market diversification.
“Canada’s small- and medium-sized businesses have told us they feel especially vulnerable to ongoing market volatility,”
“Canada’s small- and medium-sized businesses have told us they feel especially vulnerable to ongoing market volatility,”
– Todd Winterhalt, EDC s enior vice-president of international markets
image: fabrikasimf/freepik.com
said Todd Winterhalt, EDC senior vice-president of international markets. “Our goal is to offer timely, meaningful support so they can focus on doing what they do best.”
The program also includes expanded access to credit insurance, foreign exchange guarantees and other financial solutions to support global growth. EDC has launched additional online resources, including a U.S. market intelligence hub, along with tools and articles designed to help companies respond to changing conditions in the U.S. market.
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WestJet grounds its dedicated cargo operations
WESTJET SAYS ITS cargo-dedicated freighter operations will no longer be part of the airline’s core strategy, marking a shift in focus for the company’s logistics division.
WestJet Cargo confirmed to Inside Logistics that it currently has two 737-800 Boeing converted freighters in service, with two additional aircraft in storage. The airline is evaluating various options for the fleet.
“WestJet Cargo’s focus remains on optimizing the belly cargo capacity of our entire
UNLOCK THE POWER OF INTRALOGISTICS
passenger fleet, which continues to provide a reliable and sustainable solution in global airfreight,” the company said in a statement.
Alongside the announcement, WestJet also confirmed that Kirsten de Bruijn, executive vicepresident of WestJet Cargo, will step down from her role and leave the company in June.
“I want to extend my sincere gratitude to Kirsten de Bruijn,” WestJet CEO Alexis von Hoensbroech wrote in a social media post. “We have seen significant growth and success in our cargo business thanks to Kirsten’s expertise and leadership. She was instrumental in building and growing a high-performing cargo organization. With the team well established, Kirsten has notified us of her intention to leave WestJet come June. On behalf of the entire WestJet team, we thank her for her tremendous contributions.”
WestJet Cargo added that under de Bruijn’s leadership, the division experienced notable growth and remains fully operational and committed to serving its customers.
WestJet Cargo launched in April 2023.
WestJet Cargo to sell Virgin Atlantic’s Toronto-London cargo capacity
WESTJET CARGO has signed a year-round Block Space Agreement with Virgin Atlantic to offer cargo capacity on flights between Toronto and London, effective March 31.
The partnership marks Virgin Atlantic’s return to the Canadian cargo market after more than 20 years, providing up to 20 tonnes of daily capacity on wide-body flights from Toronto Pearson International Airport to London Heathrow.
“Virgin Atlantic’s decision to partner with WestJet Cargo for this vital route underscores our deep understanding of the Canadian market and our operational expertise,” said Kirsten De Bruijn, executive vice-president of WestJet Cargo.
Nick Diesel, managing director of Virgin Atlantic Cargo, noted that the agreement strengthens the airline’s presence in Canada and offers seamless access to its global network.
The deal enhances cargo connectivity between Canada, Europe, Africa, the Middle East and Asia, with shipments from Toronto being transported under a WestJet Cargo air waybill.
CPKC, Lanco Group sell Panama Canal Railway Company to APM Terminals
CANADIAN PACIFIC KANSAS CITY (CPKC) and Lanco Group/ Mi-Jack have sold the Panama Canal Railway Company (PCRC) to APM Terminals, a global terminal operator and subsidiary of A.P. Moller – Maersk.
PCRC, which operates freight and passenger rail services along the Panama Canal, had been jointly owned by CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since its inception in 1998. In 2024, the railway posted US$77 million in revenue and US$36 million in earnings before interest, taxes, depreciation and amortization (EBITDA).
“We are pleased to have completed this transaction with APM Terminals, a division of A.P. Moller – Maersk, a key strategic partner of CPKC and major customer of the Panama Canal Railway,” said CPKC president and CEO Keith Creel. “The sale of this non-core asset delivers value to our shareholders and reinforces our focus on expanding our core North American rail business across our three-nation network connecting Canada, the U.S. and Mexico.”
Lanco Group/Mi-Jack CEO Mike Lanigan also welcomed the deal.
“Lanco is very proud to have worked alongside CPKC and A.P. Moller – Maersk over the years,” said Lanigan. “Keith Creel and his team have been a pleasure to work with, and I congratulate APM Terminals on acquiring the Panama Canal Railway. Panama is a vital transportation hub, and I’m confident the container business will continue to thrive under APM’s leadership.”
Keith Svendsen, CEO of APM Terminals, said the acquisition supports the company’s core focus on intermodal container logistics.
“PCRC represents a strong infrastructure investment in the region,
Rail congestion, weather delays impacting Canadian port dwell times
fully aligned with our core business,” Svendsen said. “The company is well known for operational excellence and gives us a valuable opportunity to expand the range of services we offer to our global shipping customers.”
PCRC was formed after securing a concession from the Republic of Panama to rebuild and operate the 47-mile railway running parallel to the Panama Canal. The line provides a key land bridge between the Atlantic and Pacific oceans.
APM Terminals has operated container terminals globally for more than 50 years. It runs 60 terminals in 33 countries and employs approximately 33,000 people. In the Americas, it operates 14 terminals across eight countries.
AT major Canadian ports continue to be high, driven by rail congestion, severe weather and equipment shortages, according to a March report from DHL Global Forwarding on North American port conditions.
In Halifax, import rail dwell times are averaging 18 days, with some containers facing delays of up to 30 days due to high ground counts and labour shortages. PSA and CN are working together to improve rail productivity.
Saint John is also experiencing delays, with import rail dwell times reaching 11.1 days, primarily due to a lack of sufficient rail car supply. Terminal utilization remains high at 89 per cent.
In Montreal, CPKC has lifted its export embargo, but inconsistent rail car availability has led to dwell times of 5.1 days, with a full recovery expected in the next seven to 10 days.
On the West Coast, Vancouver is grappling with significant rail issues, with container dwell times ranging from 20 to 30 days. Prince Rupert is facing delays of up to five days due to minor rail disruptions.
DHL’s Ocean Freight Port Situation Update highlights the ongoing challenges to supply chain efficiency as weather and infrastructure constraints continue to affect freight movement across North America.
CBSA extends deadline for importers to post financial security
The Canada Border Services Agency (CBSA) has extended the deadline for commercial importers to post financial security in its Assessment and Revenue Management (CARM) system.
Importers now have until 3 a.m. EDT on May 20 to comply, following a 30-day extension in response to feedback from stakeholders. Those who do not meet the deadline will lose access to the Release Prior to Payment (RPP) program, meaning duties and taxes will need to be paid before goods are released at the border.
The CBSA is advising importers to submit their electronic financial security well in advance of the new deadline to avoid potential processing delays.
Photo courtesy of CPKC.
DWELL TIMES
Tree of Life Canada expands warehouse operations in Mississauga
TREE OF LIFE CANADA, a distributor in the temperature-controlled logistics sector, has secured a 331,016-square-foot lease at 6185 McLaughlin Road in Mississauga, Ont. The move marks an expansion of the company’s operations, following its initial occupancy of 182,751 square feet at the facility.
The expansion was made possible when a major U.S. retailer exited the Canadian market, allowing Tree of Life to acquire an additional 150,265 square feet of space. The newly leased area includes advanced freezer and cooler facilities to support its temperature-controlled operations, consolidating all activities under one roof.
“This expansion underscores our long-term commitment to the Canadian market and confidence in its continued growth,” said Christopher Parker, senior vice-president of IT and operations at Tree of Life Canada. “Investing in
“This expansion underscores our longterm commitment to the Canadian market and confidence in its continued growth,”
– Christopher Parker,
senior vice-president of IT and operations at Tree of Life Canada.
this state-of-the-art facility will strengthen our ability to deliver exceptional service and support to our valued partners. Integrating all temperature zones in a single facility will streamline operations, boost storage capacity, and optimize our distribution network.”
Canadian Tire unveils four-year growth plan, ‘True North’
Canadian Tire Corp. has unveiled a new four-year plan aimed at growing its retail business, enhancing its Triangle Rewards program and improving operational efficiency.
Dubbed "True North," the strategy includes investments in data analytics, omnichannel retail growth and a more integrated business model. The company says it will shift from a holding structure to a unified organization to better engage customers and boost productivity.
“In a new era of retail and hyper-scale global competition, we will operate more efficiently and go to market more strategically,” said Greg Hicks, Canadian Tire’s president and CEO, in a statement.
As part of the plan, the retailer will streamline its SportChek portfolio by closing 17 standalone Atmosphere stores, with 14 of those locations being relocated within existing SportChek outlets.
Over the next four years, Canadian Tire expects to invest more than $2 billion, with capital spending projected to reach as much as $575 million in 2025. The company also plans to repurchase up to $400 million in shares and allocate $200 million toward debt reduction.
The restructuring and store closures are expected to result in one-time costs of approximately $85 million but are projected to generate $100 million in annual savings starting in 2026.
Business confidence faltering as exporters face mounting pressures
Canadian business confidence has remained weak for the third consecutive quarter, with exporters now the least optimistic sector, according to the latest Business Insights Quarterly from the Canadian Chamber of Commerce’s Business Data Lab.
The report reveals that goods exporters, traditionally more optimistic than other sectors, saw sentiment drop sharply in late 2024 due to rail and port strikes and growing trade policy uncertainty. Ongoing supply chain disruptions and rising tariffs continue to heavily impact their outlook.
“Supply chains are under strain, tariff-driven price pressures are mounting, and businesses — particularly exporters — are struggling just to stay afloat,” said Patrick Gill, vice-president of the Business Data Lab.
Ontario, especially in manufacturing hubs like Oshawa, London and Hamilton, is the least optimistic region. Local businesses cite weak consumer demand as their top concern, surpassing labour shortages for the second quarter in a row.
Despite these challenges, 73 per cent of businesses remain hopeful about the year ahead. However, the Chamber cautions that optimism alone won’t be enough to navigate the ongoing economic uncertainty.
Photo courtesy of Tree of Life.
movers + shakers
A.P. Moller – Maersk
Integrated logistics company A.P. Moller – Maersk (Maersk) announced the appointment of Michelle Grose as the new area managing director/president for Canada, based out of Toronto.
Grose has more than 20 years of industry experience and has held influential supply chain roles in multi-billion-dollar logistics operations in companies like Unilever, Walmart and Microsoft. Since joining Maersk in 2023, she has led strategy and execution for a variety of the company’s products in North America, including air freight, first mile and supply chain management.
Port of Quebec
The Port of Québec announced the appointment of François Amyot as chairman of its board of directors. He has been a member of the board of directors since Oct. 20, 2022, and currently
serves as chair of the Governance, Talent and Culture Committee and a member of the Audit Committee. Amyot has a law degree from Université Laval, is a member of the Barreau du Québec and is vice-president of investments and chief legal officer at HDG.
Group Touchette
LOGISTEC
Groupe Touchette announced changes in its executive leadership, appointing Nicolas Touchette and Frédéric Bouthillier as co-chief executive officers (co-CEOs), alongside Egil Moller Nielsen as chief operating officer (COO). These leadership changes mark a new era of transformation as the company focuses on accelerating growth and achieving their best-in-class vision. Completing this leadership team is chief financial officer (CFO) Frédéric Poussard, whose financial leadership has been key in driving Groupe Touchette forward.
LOGISTEC, a marine and logistics services provider, announced two executive appointments – Michel Brisebois, chief human resources officer and Katia Reyburn, senior vice-president of communications and public affairs. With over 25 years of experience in human resources, Brisebois has extensive expertise in talent management within the supply chain industry. His insight into attracting, developing and retaining the best talent, and leading labour relations are crucial to LOGISTEC’s success in an ever-evolving industry.
Reyburn has led communications and public affairs in large corporations for over 25 years. Since joining LOGISTEC in 2021, she has elevated the company’s position in the industry. In her new role, she will leverage her expertise in corporate communications to strengthen LOGISTEC’s strategic positioning and support our business objectives.
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NAVIGATING THE TARIFF WAR
How businesses can prepare for uncertainty
Companies operating under the status quo in the hopes that the ongoing tariff dispute between Canada and the U.S. will go away could face a rude awakening if they don’t adjust their business models.
This was the message during a CITT webinar on navigating the current tariff landscape, a topic Ryan Hammett, director of market intelligence and insights for C.H. Robinson, said is not going away.
“Depending on the country and the product, we could likely see multiple rounds of tariffs issued by the U.S. stacking on top of each other,” said Hammett, advising companies not to base plans on public discussion but rather on official announcements.
“But also,” he added, “if I’m a business impacted by these tariffs, I’m realizing I need multiple types of plans. I want to walk away with an understanding of the practical options available to me to navigate trade policy changes in the Canadian market.”
One of those practical options is exploring alternative markets.
“It is in times of disruption when we are often forced to think of things differently,” said Hammett.
Hammett outlined three areas companies should examine when considering other markets. The first is identifying any risks.
“Where do you have exposure to tariffs? What products are you selling or sourcing internationally? Are there other countries with demand or growing markets for your products?” said Hammett. “If you’re sourcing from the U.S. or other countries impacted by trade policy changes, are they the only places with vendors that have the tools, experience and capabilities you need?”
Next is understanding price, or, in other words, how likely it is that your product could change in cost.
“Do you have competitors that can easily steal demand from you if your prices increase?” asked Hammett. “Or can your competition be impacted by tariffs in the exact same way you are?”
Finally, another risk when looking at other markets is resource availability. Companies should ensure they have an experienced team in place to manage potential changes in price, logistics and the creation of a new network.
“If you plan to diversify where you sell your products internationally, do you have relationships or connections in those new countries?” said Hammett.
For companies that have spent a lot of time and money establishing networks and infrastructure, Hammett said that if they are flexible enough, they should examine their overall operational processes.
“My experience over many years is that shippers would rather put pressure on external parties to deliver cost savings than sometimes do the difficult internal work between departments to make operational or technology changes to unlock savings,” he said. “But in a time when there is high risk that external factors will not produce opportunities for cost savings, what risk are you incurring to your bottom line by not looking internally for every nickel and dime you’ve overlooked in the past?”
Canada-U.S. relations
Sixty-six per cent of Canada’s economy is trade-related, according to C.H. Robinson, and 78 per cent of exports go to the U.S. “We’re keenly aware of the economic importance of cross-border trade to our broader economy,” said Brad Hogeterp, product development manager in Canada for C.H. Robinson, who affirmed that the current situation with the U.S. “sure looks and feels like a trade war at the moment.”
That “trade war” includes 25 per cent tariffs on all goods from Canada, as well as Mexico, after the U.S. declared a national emergency on Feb. 1 under the International Emergency Economic Powers Act. Canada must pay the duty on non-United States-Mexico-Canada Agreement (USMCA)-eligible goods, and a 10 per cent tariff on non-USMCA energy and potash.
The U.S. has also implemented a 25 per cent tariff on all steel and aluminum, including derivatives, globally, and a 20 per cent tariff on Chinese imports.
In response, Canada has placed its own 25 per cent tariff on $155 billion worth of imported U.S. products, with the first phase kicking in on March 4 and the second on April 2. An early rollout of steel and aluminum tariffs became effective March 13.
“Targeted items in phase one include an extensive range of goods, from orange juice and peanut butter to wine, appliances and cosmetics,” said Hogeterp. “Phase two’s early
rollout primarily targets steel and aluminum, as well as tools, computers and servers, display monitors, water heaters, sports equipment and cast-iron products.”
Hogeterp said the intent of the reciprocal tariffs is to put pressure on U.S. industries and certain states, creating disruption and uncertainty much like the U.S. is attempting to do in Canada.
He added that Canadian industries such as automotive, agriculture and steel are already experiencing disrupted trade flows, and the tariff dispute has become a central issue in Canadian politics.
Brittney Lubinsky, business development manager with C.H. Robinson, said companies must review the parameters around the rules of origin to ensure that a particular product qualifies under USMCA to be exempt from tariffs.
“We really want to stress that if your company does not have dedicated trade compliance resources or people familiar with the regulations,
we would suggest hiring a trained professional—a customs broker, trade attorney, or someone in the industry to help with this,” said Lubinsky. “Typically, compliance gets rolled into logistics or the finance department. But classification and origin determination are not as straightforward as one may think. With all the additional scrutiny around these claims, you will absolutely want to make sure that your claims are accurate.”
Hammett stressed the importance of being prepared, as change is inevitable.
“The trade policy landscape lately has been changing daily, which makes it really challenging to know how to proceed if you haven’t anticipated it,” he said. “Where will you be proactive versus reactive? Which risks that we talked about earlier require you to make a longterm change, versus the ones you can probably wait out? The more you can align criticality and priority, the faster you can move.”
|
By Derek Clouthier
MANUFACTURERS AND PORT OF VANCOUVER MONITOR UNCERTAIN TRADE LANDSCAPE
Despite Canada not being included on the list of countries that will face reciprocal tariffs from the U.S., some industries are still reeling from tariffs that have been in place since early March.
Alan Arcand, chief economist at Canadian Manufacturers and Exporters (CME), said the auto industry is vulnerable to U.S. tariffs.
“The auto industry is the most exposed, with 75 per cent of its sales dependent on U.S. exports,” he said.
U.S. President Donald Trump announced April 2 that he was moving forward with tariffs on the automotive industry, slapping a 25 per cent tax on imports from Canada to the U.S. Other industries Arcand said would be greatly impacted by U.S. tariffs include machinery, with 67 per cent of its exports going to the U.S.; chemicals, at 60 per cent; aerospace, 48 per cent; plastics and rubber products, 46 per cent; and wood products, 44 per cent. Steel and aluminum, which Trump has hit with a 25 per cent tariff, see 56 per cent of their exports heading south of the border.
CME has issued an open letter to all federal party leaders, urging them to take immediate action to help Canadian manufacturers and their workers deal with the impact of U.S. tariffs. “The letter outlines short-term relief measures
to mitigate the tariffs’ impact and long-term structural reforms to enhance Canada’s global competitiveness and economic resilience,” Arcand said.
Whether the tariffs currently in place will have a lasting impact on the Canadian economy is difficult for Arcand to predict due to continued uncertainty.
“We are working closely with the government and U.S. allies to eliminate this risk and establish a lasting solution,” he said. “Our goal is to restore the strong, cooperative trade relationship that makes Canada and the U.S. global leaders in manufacturing.”
Ports, including the Port of Vancouver, are also monitoring what has been a roller-coaster ride when it comes to tariffs.
With Trump threatening tariffs on all Canadian goods, delaying them multiple times, imposing tariffs on certain products and most recently excluding Canada from reciprocal tariffs, it has been challenging to plan.
But the Port of Vancouver is a hub for imports and exports from various countries around the world. In fact, the vast majority of containerized trade through the port consists of Canadian imports and exports, not U.S.-market traffic.
The port connects Canada with 170 nations and moves $300 billion in trade every year.
Nearly $1 in every $3 of Canadian goods traded outside North America moves through the port, and around 80 per cent of Canada’s international trade through the port is with markets outside the U.S. Much of these exports include grain, fertilizer and forestry products to countries such as China, Japan, Korea and India. Imports include consumer goods like industrial parts, vehicles and food from the Indo-Pacific region. In 2024, three-quarters of international trade through the Port of Vancouver was with the Indo-Pacific region, with 35 per cent of trade going to China, 14 per cent to Japan and Korea, and five per cent to India, among others. Last year, the port also saw record Canadian crude oil exports via the expanded Trans Mountain pipeline and terminal, amounting to 12.5 million metric tonnes—almost half of which was destined for Indo-Pacific nations.
“These are unprecedented times, and right now we are monitoring the situation and engaged in Canada’s response, including working closely with government and industry,” said the port’s senior communications advisor, Alex Munro. “There is an immense opportunity to grow and diversify Canada’s trade through the gateway, with the Port of Vancouver strongly positioned to support Canada and its response.”
BEYOND THE MANUFACTURER
How 3D Storage Solutions delivers flexibility, expertise and value
THINK
BUYING DIRECTLY from a manufacturer is the best way to get what you need? Think again.
As one of Canada’s largest distributors, 3D Storage Solutions offers something manufacturers can’t—unmatched flexibility, broader solutions and a problem-solving approach that puts its customers’ needs first.
SETTING ITSELF APART
Since its launch in 2010, 3D Storage has strived to provide quick, efficient design and supply services to its customers. Over the past 15 years, the Burlington, Ont.-based company has grown in both size and experience, handling some of the largest projects in Canada.
A key factor in 3D Storage’s success is its role as an integrator, allowing it to tailor services to the unique needs of each customer.
“The essential difference is that we are not a ‘one-trick pony,’” said Kevin Minkhorst, president of 3D Storage, comparing an integrator with a manufacturer. “Manufacturers offer one set of products with fixed delivery times and services. As an integrator with access to a wide range of manufacturers across North America, we can pick and choose the best products to meet our customers’ needs.”
While many companies have traditionally opted to buy directly from manufacturers, working with an integrator provides a wider range of options and the flexibility to solve challenges as they arise.
“We work with just about every manufacturer in North America, which allows us to put together a package that best meets the customer’s needs—whether that means quick delivery, structural or roll-formed products, cost-effective solutions or specialized engineering considerations,” Minkhorst said.
Having established relationships with multiple manufacturers, 3D Storage has greater access to products and can match them to a customer’s specific requirements, whether that’s a particular product, better lead times or competitive pricing.
COMMON MISCONCEPTIONS
One of the most common misconceptions about working with an integrator like 3D Storage is that it will be more expensive than dealing directly with a manufacturer.
But as Minkhorst explained, the company has been competing against manufacturers for years and remains price-competitive for several reasons.
“Low overhead is a major factor,” he said. “Another reason is that many projects require multiple components that have to be subcontracted anyway, including installation, engineering, permitting, freight and specialty products like shelving and mezzanines. Manufacturers have no price advantage over 3D Storage on these things.”
A nother misconception is that integrators are smaller operations
that lack the capacity to handle large projects.
3D Storage challenges that notion, having installed one of Canada’s largest warehouses for Amazon, a four-level, one-million-square-foot facility that included sprinklers, lighting, fire protection and all required permitting.
“More and more of the projects we work on require municipal permits, and a lot of work goes into that,” Minkhorst said. “We also accommodate the stricter enforcement of engineering standards, contractor compliance and health and safety requirements.”
Navigating the permitting process is a major advantage for 3D Storage, as more municipalities now require permits for warehouse racking projects.
“We have the expertise to handle things like seismic designs, floor slab analysis, egress, life safety issues and rack design,” Minkhorst said. “Our staff can compile all the required information from various stakeholders and submit the permit with minimal effort from our customers.”
RACKING UP WINS
3D Storage’s commitment to fast response times in designing, quoting and supplying optimal solutions has led to repeat business from several major corporations, including UPS, Home Hardware and Sleep Country.
Many of their projects involve blending products from multiple manufacturers to provide customers with a cohesive material handling solution.
“In the case of Mevotech, we brought together manufacturers of pushback, pallet flow, pallet racking and mesh decking to create a multifaceted warehouse design that aligned with their inventory requirements,” Minkhorst said.
For Carquest, 3D Storage designed a four-level shelving storage module that included conveyor, shelving and pallet racking to support the structure.
“We also incorporated all the life safety elements, such as sprinklers and lighting, into the design,” Minkhorst added.
But 3D Storage doesn’t just focus on large-scale projects. Minkhorst recognizes the importance of serving smaller companies as well.
“We are working on one now with seven bays of rack in Fort McMurray that no one else seemed to be bothered with,” he said. “Big or small, we enjoy helping our customers make the best use of their space.”
THE FUTURE IS BRIGHT
Looking ahead, 3D Storage sees automation and regulatory compliance as key areas of growth.
“Ensuring our partners have the depth and financial stability to sustain the long cycle times of these projects is crucial,” Minkhorst said. “We also want to ensure that our recommended solutions provide the throughput and ROI that make sense for our customers.”
Other expanding areas include damage inspections, rack repair and replacements, pre-start health and safety reviews and assisting with ministry of labour enforcements.
COMPANY INFO:
CORPORATE
3070 Mainway, Unit 15
Burlington, Ontario
L7M 3X1
1-877-557-2257
COMPANY SIZE
15 employees
SERVICES
3D Storage Solutions Limited is a full-service integrator and distributor of warehouse storage products and accessories providing design, layout and engineering services, as well as assessments of existing rack with recommended repair or replacement parts.
Our full line of products include:
■ Standard Pallet Rack
■ Pushback Racking
■ Drive-in Rack
■ Pallet Flow
■ Double Deep Rack
■ Carton Flow
■ Shelving
■ Mezzanines and Pick Modules
■ Modular Offices
■ Rack and Column Protection
FOR BUSINESSES SEEKING CUSTOMIZED WAREHOUSE SYSTEMS AND MATERIAL HANDLING SOLUTIONS, QUIT RACKING YOUR BRAIN AND CONTACT 3D STORAGE TODAY TO FIND THE BEST SOLUTION FOR YOUR NEEDS.
PROMAT SETS NEW ATTENDANCE RECORD
ProMat 2025 set a new attendance record with 52,223 registrants and 1,160 exhibitors, according to event producer MHI. The supply chain and manufacturing trade show, held at McCormick Place, spanned 659,000 net square feet and featured 215 educational sessions.
“ProMat brings this industry together to connect and share the best equipment and technology, the leading trends, and the latest innovations,” said MHI CEO John Paxton. “The success of ProMat 2025 is proof of the central role the supply chain plays across industries.”
The event saw a three per cent increase in registered attendees over the last ProMat, with participants from 143 countries.
“The energy on the show floor was very high! Attendees not only viewed the latest innovation this industry has to offer, but they also learned about them in educational sessions and connected with each other,” said Daniel McKinnon, chief exhibitions officer at MHI.
Automation, robotics and artificial intelligence were dominant themes, with new technologies showcased alongside traditional material
Moving what Matters
For over 100 years, Oceanex has been providing efficient and reliable intermodal transportation services safely and with environmental leadership. With our fleet of 3 vessels and the largest dedicated fleet of containers and trailers servicing the province of Newfoundland and Labrador, we keep retail shelves stocked and deliver the materials that build and support our communities, keeping the economic engines of the province running.
A robotic arm scans and moves packages at ProMat 2025.
handling solutions.
The event featured keynotes from IBM’s Paul Zikopoulos and Bloomberg’s Azeem Azhar, as well as a talk by football coach and former NFL player Deion Sanders. The 2025 MHI Annual Industry Report, presented by Paxton and Deloitte’s Wanda Johnson, outlined the growing adoption of digital supply chain solutions.
MHI’s Industry Night, headlined by comedian Jay Pharoah, raised $60,000 for the Material Handling Education Foundation, while an additional $5,000 was donated to Fight2Feed. MHI also announced winners of the 2025 MHI Innovation Awards, including Anyware Robotics for Best New Innovation and Freespace Robotics, which won the MHI StartUp Award.
Other events included Student Day, which introduced 400 students to supply chain careers, and the Women in Supply Chain Conference, which focused on workplace burnout prevention.
T he next MHI-sponsored event, MODEX 2026, is scheduled for April 13-16 in Atlanta, while ProMat will return to Chicago in 2027.
PROMAT | By Derek Clouthier
A CASE STUDY: AUTOMATING YOUR COLD STORAGE WAREHOUSE
Choosing the right technology to improve operations in a cold storage warehouse can give many people the chills, but examining user case studies can help make the process clearer.
Not long ago, Agile Cold Storage wanted to expand the number of pallets its facility in Gainesville, Ga., could accommodate. Initially designed for 20,000 pallets, customer demand required the facility to more than double its capacity, said John Ripple, chief development officer for Agile.
“We needed 50,000 pallets, and the only direction to go was up,” he told ProMat 2025 attendees.
With real-time inventory visibility and accuracy a must for a third-party logistics provider like Agile, the company looked to implement an automated storage and retrieval system (ASRS) from Swisslog.
The system was designed with six independent crane aisles, each with separate inbound and outbound conveyors. Reliability was a
top priority, ensuring that if one aisle went down, it would not impact the entire system.
“We can’t be in a position where we say, ‘The system isn’t working today, so we can’t get your orders out,’” said Ripple. “That’s not an option.”
Ben Lee, vice-president of sales for Swisslog Integrated Systems, said choosing the right technology was key to the project’s success.
“We knew the challenge. We knew what the expectations were when we started to look at all the technology,” said Lee. “What do we need to use from the Swisslog portfolio? We’ve got a variety of technology that can operate within the freezer.”
Moving forward with Swisslog’s deepfreeze-rated equipment, including PowerStore pallet shuttles, Vectura pallet cranes and ProMove conveyors, the company also used its laser positioning technology to ensure storage density and efficiency.
“With PowerStore, we achieve extreme
“Bring your integrators in early, be transparent and provide good data upfront. That’s how you get a successful automation project.”
– Ben Lee, vice-president of sales for Swisslog Integrated Systems
storage density—it’s accurate down to the millimetre,” said Lee.
Energy efficiency was also a key consideration. Swisslog has been producing cranes since 1969, and its tapered mast structure
ProMat 2025 set an attendance record in Chicago this year.
reduces resistance and inertia, helping to minimize energy consumption.
“There’s real science behind our energy savings,” said Lee. “We don’t just build cranes; we engineer them for efficiency and longevity.”
Ripple noted that some older cold storage facilities can consume around $2 million per year in electricity, while Agile’s facility operates below $300,000 thanks to better insulation, fewer door openings and an efficient ASRS system.
“We’re on track to spend closer to $250,000 per year on utilities compared to $2 million for a similar capacity in older buildings,” he said.
Ripple and Lee both emphasized the importance of collaboration and transparency throughout the process. Agile involved Swisslog early in the planning phase, and strong communication helped prevent last-minute design changes that could have caused delays. Providing quality data to automation providers is another way to ensure a smooth transition.
“Bring your integrators in early, be transparent and provide good data upfront. That’s how you get a successful automation project,” said Lee.
“A smooth startup builds confidence,” added Ripple. “When you have a rough one, people start to distrust automation.”
AI ADOPTION IN WAREHOUSING
Why companies must assess readiness before diving in
There’s no doubt the hype around artificial intelligence (AI) is real, but before diving in, companies should take a hard look in the mirror before making any hasty decisions.
This was the theme of a session at ProMat 2025, where Gretchen Molina, director and private practice lead at ethree solutions, stressed the importance of companies assessing their current technological maturity before jumping into AI.
“Be sincere with where you actually are,” she said, underscoring the importance of having a warehouse management system in place. “If you’re doing great, give yourself credit. If not, identify where you need to improve.”
Molina said companies must ensure their employees are ready for automation and AI within their operations, and that the process should be streamlined.
“Seventy-six per cent of the CEOs that hear about [generative] AI say, ‘I want Gen AI,’ and 70 per cent of manufacturing CEOs say AI is delivering a strong ROI for their operations, so it’s being implemented already,” she said. “Forty per cent of supply chain organizations are investing in Gen AI today, so if you’re not investing in generative AI, you’re already a little bit behind.”
Echoing this sentiment, Antonio de la Mata, technology and innovation manager and head of AI at ethree solutions, said most companies he works with are in the
early stages of AI adoption. He recommends starting with a maturity assessment, data evaluation, system integration and a review of legacy infrastructure.
“A lot of clients we serve want to jump into AI, but they don’t have any data files,” said de la Mata. “They don’t have a data warehouse. They have multiple systems spread out, they don’t integrate, and they want to do a lot of things related to AI. But when we look at the data, it’s not there.”
Outlining a roadmap for integrating AI into warehouse operations, de la Mata said it begins with establishing a data strategy and a plan for moving forward.
“If we look at how Gen AI has transformed through the years, by 2030, 30 per cent of the hours currently worked are going to be automated across different industries,” said de la Mata. He added that by the same year, companies investing in automation will see 60 per cent higher operational efficiency compared to those relying on manual labour.
The next steps in integrating AI into warehouse operations include ensuring proper data governance, determining the most valuable use cases, implementing AI-powered solutions, and finally, change management and employee training.
PROMAT PRODUCTS |
By Derek Clouthier
YALE LIFT TRUCK TECHNOLOGIES UNVEILS CONCEPT WAREHOUSE TRUCK AT PROMAT
Yale Lift Truck Technologies introduced its latest concept warehouse truck at ProMat, incorporating customer-driven design improvements to enhance ergonomics, safety and productivity. The three-wheel stand concept reflects feedback from warehouse operators and features innovations aimed at real-world challenges.
“The heart of our design process is getting to know our customers and developing a deep understanding of the challenges they face and what makes their operations tick,” said Brad Long, global activation manager at Yale Lift Truck Technologies. “They’re involved from concepting and development to real-world testing and commercialization, and many of our most successful solutions, such as Yale Reliant operator assist technology, have resulted from this customer-driven
There are also ways to jump-start AI adoption, as de la Mata highlighted, specifically with the use of the AI Maturity Model, which can identify gaps in warehouse operations and steps to alleviate them.
Companies can also use a Gen AI cost estimator, which helps determine the most cost-effective AI model, as well as a use case library that ensures AI investments align with tangible business outcomes.
It’s also important not to remove the human factor when transitioning to AI and greater automation.
“Sometimes you have to put a human in the loop to be able to automate some of the things, so our suggestion is to not just go directly to automation,” said de la Mata. “Try to do it internally. Try to put people in your workflows in the automation landscape, and then start scaling up.”
Taking the right steps to adopt AI and automation into warehouse operations requires patience and the right methodology. And though AI has dominated the conversation since it surged onto the scene a few years ago, the hype is certainly real.
“We want you guys to join the hype. I don’t want to scare you… the hype is real, it’s here,” said de la Mata. “Everyone talks about it every day. Believe that Gen AI is the next wave in the transformation of this industry.”
approach.”
The redesigned three-wheel stand-up model is commonly used for dock-to-stock transportation, drive-in rack operations and other warehouse loading and unloading tasks. It features a large operator compartment with customizable armrests, footrests and floor options to enhance comfort. Technology options, including a touchscreen display and operator sensing system, are designed to improve ease of use and awareness.
To enhance safety, stability technology comes standard, with an option to upgrade to the full Yale Reliant operator assist suite. The truck also offers various mast, performance and battery configurations to meet different warehouse needs.
KNAPP SHOWCASES AEROBOT AT PROMAT 2025
KNAPP introduced its AeroBot system to the North American market at ProMat 2025, following its recent win of the ‘Best Product Award’ at LogiMAT 2025 in Stuttgart, Germany.
“The AeroBot system is another milestone in our long line of innovations. As with any other development, the AeroBot is a result of contemporary market drivers and the needs of our customers,” said KNAPP CEO Gerald Hofer. “Currently, solutions that provide an easier start to automation and are flexible enough to adapt rapidly to market conditions are popular. It’s import-
ant to look at these needs on the basis of an overall concept instead of just isolated technologies. This is exactly what our main focus at KNAPP has been in the past years and we now have the broadest portfolio of technologies on the market.”
The AeroBot enhances high-density storage and retrieval, complementing KNAPP’s Evo Shuttle system. It seamlessly integrates with other KNAPP technologies, including ergonomic goods-to-person workstations, picking robots, pocket sorter systems and autonomous mobile robots (AMRs).
While the Evo Shuttle is designed for high-performance complex tasks, the AeroBot’s 3D system offers flexibility with a modular setup optimized for storage density. Operating at heights up to 12 meters, it is designed for quick deployment in specialized buildings and features simple floor guidance methodologies for product delivery.
SNAKES AND LADDERS
Alberta’s economy and supply chain balances risks and opportunities
Alberta continues to be one of the strongest economic engines in Canada. However, as Rob Roach explained during an update in Calgary in February, tariffs imposed by the United States could lead to a significant slowdown or even a recession.
Speaking at the CITT’s Alberta logistics update, Roach, deputy chief economist and managing director at ATB Financial, compared Alberta’s economy to the board game Snakes and Ladders.
“It struck me how similar it is to the economy—there’s always uncertainty, but right now, there are more potential ‘snakes’ that could slow our trajectory,” he said. “Thankfully, there are also ‘ladders’ that could provide a boost. The challenge is that we don’t always know which we’ll land on.”
One of the “ladders” Roach cited was bringing inflation under control.
“Since January of last year, inflation has averaged 2.4 per cent, a level that supports economic growth without excessive price increases,” he said. “This decline is a positive development—a ‘ladder’ on the board.”
Despite this, the lingering impacts of inflation continue. As Roach pointed out, while prices are no longer increasing, they have not dropped, meaning households must adjust to these economic shifts. He said this hits households particularly hard in Alberta, where younger families tend to have higher debt levels due to higher incomes.
Global risks also pose a threat to Canada and Alberta’s economic stability, including geopolitical conflicts, China’s economic slowdown and, for Alberta, the influence of the Organization of Petroleum Exporting Countries (OPEC) on oil prices.
“OPEC has been restricting oil supply to maintain higher prices,” Roach said. “If they reverse this policy, we could see a drop in oil prices, directly impacting Alberta’s economy.”
The U.S., however, continues to have a significant impact on Canada’s economy and supply chain.
“The U.S. economy has exceeded expectations, continuing to grow despite higher interest rates,” Roach said. “Since the U.S. is
Alberta’s biggest trading partner, this is a positive factor. However, looming trade disputes, particularly tariffs, pose a serious threat. If these tariffs are enacted, they would significantly disrupt supply chains and could push Canada—and Alberta—toward a recession. Avoiding these tariffs is critical for maintaining economic stability.”
If Canada manages to avoid the Trump tariffs, Roach said Alberta has three key “ladders” that could position the province for economic resilience this year.
In addition to oil and gas production, Alberta has diversified, investing in emerging industries. The province has also seen ongoing population and employment growth, with a young workforce and a strong labour market.
With its diversification efforts, Alberta has seen growth in several sectors, including tourism, food manufacturing and logistics and transportation.
Oil production is at an all-time high, Roach said, with 2024 being a record year thanks to the Trans Mountain pipeline expansion, which added 590,000 barrels per day of capacity.
“However, while we’re exporting more oil and benefiting from higher production, we’re not seeing the kind of investment in future growth that characterized past booms,” Roach pointed out. “There’s limited room for expansion. Pipeline capacity is expected to max out again within the next few years, discouraging producers from pouring billions into new projects.”
Overall, Alberta’s economic growth outpaced the national average last year, with a 2.5 per cent increase compared to Canada’s 1.2 per cent.
Agility in modern supply chains
Shippers play a major role in the overall supply chain. As Charles Daharry, national manager of transportation carrier management and supply chain for RONA, underscored, they sit at the centre of the industry’s transformation.
“We are living in the most volatile era in supply chain history,” he said. “We’re not just moving goods from point A to point B and back again. We are responsible for keeping supply chains flowing, ensuring food remains on shelves, clothes on our backs and medicine available when needed.”
In trying to build resiliency and agility, Daharry believes shippers have been defining success the wrong way—thinking too much in terms of cost-cutting, efficiency and transactional relationships.
Instead, he said, shippers need to focus on being more resilient in the face of ongoing disruption, as well as more collaborative with customers and businesses.
“Collaboration is about strengthening partnerships because no one wins in a supply chain built on adversarial relationships,” he said. “Success can no longer be measured solely by cost reduction; it must also be about strengthening partnerships and building adaptable supply chains that support future growth.”
To achieve this goal, Daharry offered three lessons for success. The first is understanding supply chain dynamics.
He said supply chains operate in cycles: when demand is high and capacity is low, carriers hold the power. When demand drops and capacity is high, shippers regain control.
“We are living in the most volatile era in supply chain history”
– Charles Daharry, national manager of transportation carrier management and supply chain for RONA
ly, they can introduce inefficiencies and risks.”
A lthough the RFP process can lead to lower rates, he said, it often sacrifices service quality, flexibility and innovation.
“Instead, RFPs should focus on aligning business needs with the right carriers,” he said. “Strong carrier networks provide more than just capacity; they offer innovation, visibility and the ability to adapt in real time.”
Daharry said shippers should shift from transactional contracts to strategic partnerships, building long-term relationships that bring stability and quality service even during disruptions.
The final lesson Daharry recommended to shippers is moving from resilience to agility.
“Resilience is important, but it’s not enough,” he said. “The real goal is agility—the ability to adapt to disruptions in real time. Agile supply chains don’t just withstand disruptions; they evolve and thrive in any market condition.”
Daharry said the three key factors to enabling agility are data sharing and forecasting, flexible capacity agreements and joint problem-solving.
Citing two key moments in recent history, Daharry pointed to the COVID-19 pandemic, when demand surged, followed by the post-pandemic shift, when demand dropped and inflation rose.
“These fluctuations create instability. When companies focus purely on cost, they put their supply chains at risk,” he said. “Shippers that chase the lowest rates without considering service quality and carrier stability often find themselves stranded when disruptions occur. Likewise, carriers that demand excessive premiums when they have leverage risk damaging relationships with shippers.”
The second lesson is rethinking requests for proposals (RFPs).
“RFPs are a necessary but often flawed part of supply chain management. Traditionally, they have been designed to drive down costs and secure capacity,” Daharry said. “However, when used incorrect-
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“A real-world example is the great Canadian rail crisis, where rail service disruptions led to capacity shortages and soaring spot market rates,” he said. “Shippers who proactively worked with their carriers and established contingency plans minimized impact and avoided costly last-minute rate spikes. This wasn’t luck—it was the result of long-term planning and collaboration.”
Daharry said buzzwords and phrases like “shipper of choice,” “carrier of choice,” and “collaboration” should not be seen as mere marketing phrases but rather as real, transparent commitments.
“The future isn’t about playing it safe; it’s about preparing to win,” he said. “The companies that will lead the next era of supply chains aren’t those chasing the lowest rates. They are the ones investing in the right partnerships, recognizing that supply chains are about more than moving freight. They’re about moving forward together.”
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MARRYING ROBOTICS AND TECHNOLOGY
Bringing together robotics and technology can help speed up and improve the implementation of warehouse automation
Robotics and technology go hand in hand, but if they aren’t working in unison, any warehouse operation is bound to experience setbacks.
As Jim Hoefflin, CEO of Softeon, told an audience at Manifest 2025 recently, there remains a great amount of variation in warehouse operations when it comes to robotics and technology.
“It’s like first-generation WMS [warehouse management systems], and they’re just starting,” he said. “They’re good at how they create their workflow. They bring you different automation substances. I think the key to all of it is how you set that up.”
Hoefflin said his company puts a lot of time and focus into warehouse execution and communication, and helping customers adapt and provide support.
“Automation products are changing by the week or month,” he said. “You can’t buy something and sit around for any amount of time.”
“Automation products are changing by the week or month. You can’t buy something and sit around for any amount of time.”
– Jim Hoefflin, CEO of Softeon
Josip Cesic, CEO of Gideon, said for his company—which loads and unloads truck trailers across different industries—robotics must be flexible and able to make decisions on the fly.
“These days, with all the investments in AI and computing, robots are really able to solve those moving problems,” he said.
Though typically separated from the electronic processes that are happening inside a facility, Cesic said loading bays are a good location to start the automation process.
“There are a number of technologies that can enable or help optimize processes across a facility, but the loading bay is relatively separated,” he said. “So from an adoption perspective, it’s a really great use case to start and learn about automation, and take the journey forward.”
Corvus Robotics is a company that develops inventory drones, which can fly themselves and scan pallet labels to enable fully automated inventory management.
Jackie Wu, CEO and co-founder of Corvus Robotics, said being able to deploy quickly and in all possible environments is important, and relies on integrating the drones with technology.
“Some of the core technologies that are mature allow us to set up these drones,” said Wu.
Hoefflin said the message he tries to relay to his customers is to create better value and solutions that take less time to implement in order to reach the next level of productivity.
“A ll of this automation is really good at upsetting what was the industry norm, and you know, we’re in a better position today,” said Hoefflin.
A Lojistic robot wanders the floor at Manifest.
Paul Heitlinger, Rohini Chakravarthy, Ganesh Ramakrishna and Jason Casey discuss optimizing warehouse operations during Manifest 2025 in Las Vegas.
Dr. Dr. Muddassir Ahmed.
HOW CANADA IS REWIRING ITS SUPPLY CHAIN
WHILE THE GLOBAL supply chain continues to grapple with the latest round of tariff rollouts for products imported into the U.S., markets across Canada are being forced to revisit previous supply chain demands and pivot where possible. Though Canada will not face new tariffs on USMCA-compliant products, many industries are actively seeking new trade partners—not only domestically, but also in European markets.
Much remains uncertain about how long the tariffs will last, as the latest round took effect April 2. One thing, however, is clear: the need to remain fluid as we navigate the latest supply chain storm is here to stay.
One recent solution, as Canadians adapt to the shifting supply chain landscape, is the February removal of more than half of the federal exceptions to the Canadian Free Trade Agreement. The move aims to boost interprovincial trade and counteract the impact of tariffs. According to the federal government, these changes are intended to strengthen the domestic economy and alleviate some of the pressures from the ongoing trade dispute between Canada and the U.S.
In 2023, more than $530 billion worth of goods and services moved across provincial and territorial borders, accounting for nearly 20 per cent of Canada’s GDP.
The Free Trade and Mobility Within Canada Act is the first of its kind in the country. Under the act, goods manufactured in a reciprocating province or territory will be treated the same as locally produced goods. Similarly, service providers and professionals who are properly certified or licensed in a reciprocating province will be recognized as if they were certified locally.
By removing these barriers, companies are expected to save money and labour that would otherwise go toward meeting different interprovincial regulatory standards— such as processing or technical requirements at manufacturing plants—savings that could translate into lower prices. Atlantic provinces, which typically import more goods from Quebec, Alberta and Ontario, are likely to benefit most from these changes.
Other changes include the removal of procurement restrictions, opening the mar-
is a supply chain specialist at Tyers Foods
ket for government contracts. While this could promote competition, it may also limit the ability of smaller companies to win bids in their local areas. Additionally, loosening regulations could reduce safety or technical standards in some of the stricter provinces.
Removing these barriers also limits the ability of specific provincial governments to build, own and regulate critical infrastructure in the public interest, making it more difficult to construct the publicly owned infrastructure that is desperately needed.
Canadian businesses have long said that the biggest hindrance to interprovincial trade is not regulatory differences, but rather transportation costs and availability. That suggests investment in public infrastructure may be a more effective solution for a reliable east-west trade corridor than reducing regulatory requirements.
On March 19, the Canadian Union of Public Employees (CUPE) raised concerns over the lifting of interprovincial trade barriers. The union argued that such barriers are essential protections for workers and public services, including workplace safety standards, environmental regulations, and the delivery of vital services such as child care and health care. CUPE warned that the mutual recognition approach promoted by advocates of deregulation could pressure
provinces with higher standards to lower them in order to compete with jurisdictions that have fewer protections.
Unlike tariffs, which increase the cost of goods, interprovincial trade barriers restrict the sale of goods across borders due to differing regulations, licensing and safety standards. One of the most notable restrictions recently lifted involves alcohol sales. Until the Free Trade and Mobility Within Canada Act came into effect, alcohol could not be freely sold between provinces.
This change comes alongside recent decisions by some provinces to remove U.S. alcohol products from store shelves—an impact that will certainly be noticed. All provinces, except Prince Edward Island and Newfoundland and Labrador, have agreed to remove the obstacles that previously prevented their alcohol from being sold in other jurisdictions. Participating provinces are expected to finalize the arrangement in April.
Restrictions on alcohol movement were initially put in place to protect local jobs when breweries and wineries were primarily Canadian owned. But times have changed. With companies like Labatt and Molson under foreign ownership, the larger players already ship across borders. As the industry consolidates, smaller, domestically run breweries and wineries are being squeezed out.
While the “buy local” movement helped these small producers during the COVID-19 years, open national borders present a new challenge—shipping fees.
The federal government is also pinning hopes on a new trucking pilot program to improve the movement of goods between provinces. Participating provinces and territories will recognize each other’s regulatory requirements, including those for oversized vehicles, to allow trucks to move more efficiently across the country. This initiative—unprecedented in scale—could potentially boost Canada’s economy by $200 billion annually
Provinces are now working to identify additional exceptions to the Canadian Free Trade Agreement, with the goal of removing as many as possible by June 1.
VICTORIA JONES
DEVELOPING A TRAFFIC MANAGEMENT PROGRAM
The best way to reduce vehicle and pedestrian collisions in your warehouse
HOW MANY TIMES
truck operator reversing into a worker who is walking nearby. It happens more often that we’d like. All it takes is being at the wrong place at the wrong time, coupled with distraction or inattentiveness by the pedestrian or lift-truck operator.
Government regulators have developed general safety laws requiring employers to keep workers safe from vehicle hazards. Some provide more direction on how this can be done, including developing a traffic management program with suitable controls.
The first step in developing a traffic man agement program is to carry out a workplace traffic assessment.
Traffic assessment
The purpose of a traffic assessment is to iden tify potential hazards and assess risks related to the movement of vehicles and pedestrians in the warehouse. This process is essential for maintaining a safe and efficient work environ ment that aligns with regulatory guidelines and industry best practices.
The traffic assessment should be done in consultation with workers because they have the best understanding of the challenges they face in their work environment. The assessment should look at:
■ Hazards and controls: Identify and consider measures to correct hazards that contribute to a collision. For example, multiple pallets stacked high at intersections restricting visibility can simply be eliminated or the height reduced.
■ Workplace layout: Look at all areas of your business using a map. Loading docks, receiv ing, shipping, pallet staging, battery charging, driver entrance, empty pallet storage, racking, parking, equipment such as pallet wrapper, etc. Is this the best layout, or can it be improved?
■ Flow of traffic movement: Determine where people walk and where mobile equipment operates.
■ Frequency of interactions: Where do people come into contact with mobile equipment and how often does this occur?
Follow these steps when carrying out your assessment:
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