Freight carrier Cargojet reports a surge of cargo entering Canada directly as other countries seek to avoid US tariffs, boosting its first-quarter revenue to record levels.
The Ontario-based cargo carrier said on 23 April that it generated company-record first-quarter revenue of C$250 million ($180 million), up about 8% from C$231 million of revenue during the first three months of 2024.
“With the backdrop of trade wars and expected decoupling of North American supply chains, more cargo is expected to enter Canada directly from the rest of the world to mitigate the uncertainty of tariffs,” says Jamie Porteous, Cargojet co-chief executive officer.
Cargojet operates a fleet of 41 Boeing aircraft – 24 767s and 17 757s – for customers such as Amazon, DHL Express, FedEx and other logistics providers.
Cargojet’s strong results come amid disruptions related to tit-for-tat tariff conflicts ignited by the Trump administration, which have been accompanied by wild market fluctuations and shudders in the US economy. Notably, the White House has increasingly shown an inclination to potentially ease tariffs imposed on China and other countries.
Tension between Canada and the USA has risen in recent months, with tourism declining between the North American neighbors and many supporting the “buy Canadian” movement.
Cargojet earned a first-quarter profit of C$48 million, up from C$32.5 million during the prior-year period – an improvement of nearly 48%.
The carrier says year-on-year fuel costs were nearly 19% less in the first quarter, providing a tailwind while Cargojet’s first-quarter block-hour flying came in roughly flat with last year.
“Despite rising inflationary pressures, currency volatility and geopolitical tensions, our focus remains on helping customers deliver on their commitments to their end-customers,” says co-CEO Pauline Dhillon.
Company executives expressed optimism regarding new business opportunities that could arise in coming months as a result of the USA’s trade wars.
“We continue to identify new opportunities and remain at the forefront of helping customers adjust to new global supply chains,” Porteous says.
