🎣 Tariff Showdown with Colombia

Happy Monday. Trump’s tariff showdown with Colombia yesterday almost shook the supply chain, but an agreement was reached just in time. Find out which Colombian and American products were at risk of being hit by steep tariffs.

Plus:

• 🚛 Driverless Trucks in Action

• 🚂 Railroads Face Strikes & Challenges

• 📦 Cargo Theft on the Rise

• & more...

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

🐔 WHAT’S COOKIN’ IN FREIGHT

📦 Driverless Trucks Roll Through Permian Basin. Atlas Energy Solutions and Kodiak Robotics have achieved a milestone, delivering 100 loads of proppant—sand used in hydraulic fracturing to keep underground cracks open for oil and gas flow—in the Permian Basin with two driverless RoboTrucks. The trucks, equipped with Kodiak's self-driving system, support Atlas's Dune Express—a 42-mile conveyor that automates sand transport. This marks the first commercial launch of autonomous semi-trucks by a customer, advancing safety, efficiency, and cost-effectiveness in challenging terrain. Kodiak has opened an Odessa, Texas facility to scale operations, with plans to extend autonomous trucking to highways. Don Burnette, Founder and CEO at Kodiak, said, “This is an incredible moment, for us and for the autonomous trucking industry.”

🚂 Railroads at a Crossroads: Labor Strikes, Weather Challenges, and Financial Outlooks.

• CN Rail Strike Alert: The International Brotherhood of Electrical Workers issued a 72-hour strike notice for January 28, demanding better pay and work-life balance for CN Rail’s 750 employees.

• CSX Challenges: Q4 profits dropped 16%, hit by hurricane costs, declining coal demand, and $400M in infrastructure repairs.

• Union Pacific Gains: Record Q4 profits with a 7% income boost, driven by intermodal growth and a 58.7% operating ratio.

• 2025 Outlook: Railroads face uncertainty, from coal demand to economic challenges. Union Pacific CEO Jim Vena predicts growth of 8-12% despite the unknowns ahead.

📦 Surging Cargo Theft in 2024. Cargo theft across the US and Canada hit record highs in 2024, with incidents up 27% (3,625 theft incidents reported) from 2023, according to CargoNet. The average theft value rose to $202,364, up from $187,895 in 2023. California and Texas saw the largest spikes, with Dallas County reporting a 78% increase. Criminals shifted their targets to high-value items like copper, electronics, and cryptocurrency hardware. Additionally, theft of consumables like avocados and protein powder also rose. Despite heightened media focus on theft-by-deception, traditional methods like trailer burglaries remained dominant. Warehouses and distribution centers remain the top target locations for thieves, with truck stops coming in second.

TOGETHER WITH TEXTLOCATE

TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices.

Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight.

Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.

Trump’s Tariff Showdown with Colombia: What It Means for Freight

The weekend kicked off with a bold move by President Donald J. Trump, who slapped a 25% tariff on all Colombian imports after the country refused to accept U.S. deportation flights. The White House followed up with visa restrictions and threats to double tariffs within a week if Colombia didn’t comply, as reported by AP News.

In response, Colombian President Gustavo Petro announced retaliatory tariffs on U.S. goods and launched a fiery critique of Trump, calling him a “white slaver” in a heated statement.

But by Sunday evening, Colombia folded. The Petro administration agreed to Trump’s terms, stating it would resume deportation flights and even prepare its presidential plane to assist in the process. The White House hailed the move as a win for Trump’s immigration agenda, warning other nations to take note.

“This is a win for national security,” said White House press secretary Karoline Leavitt, as detailed by NBC News.

Supply Chain in the Crosshairs

Trump’s tariff threats, though now on hold, highlighted vulnerabilities for industries dependent on Colombian imports. A post from supply chain expert Jason Miller gave a breakdown of what could have been affected:

• Flowers: Colombia accounts for 59% of U.S. fresh-cut flower imports, including nearly all chrysanthemums, carnations, and roses.

• Coffee: Colombian coffee remains a cornerstone of U.S. imports. Prices, already up 26% since pre-COVID, could have surged further.

• Produce: Tariffs threatened staples like bananas, avocados, and limes, impacting both supply chains and consumer prices.

• Tilapia: Colombia accounts for 48% of U.S. fresh or chilled tilapia fillets.

• Energy and Gold: Colombia’s petroleum products and gold are critical to industrial markets, though less visible to consumers.

Meanwhile, Colombia’s retaliatory tariffs could have targeted refined petroleum, pork, and aircraft parts, potentially impacting U.S. exports.

A Glimpse into Trump’s Playbook

This latest saga offers a preview of Trump’s second-term approach to international relations and trade policy. The administration’s swift and aggressive use of tariffs to enforce immigration policies signals a willingness to disrupt global supply chains. Experts warn that this could create significant headaches for freight brokers, importers, and exporters reliant on nations in Trump’s crosshairs.

Whether geopolitical or economic, the fallout is real for industries caught in the middle. For brokers, navigating potential price spikes, rerouted supply chains, and client anxiety will be critical.

As noted by CNN, Trump’s perceived success with Colombia could embolden similar moves against nations like Mexico and Canada.

What’s Next for Freight?

While Colombia agreed to Trump's demands, the episode serves as a cautionary tale for the logistics world. Here are three takeaways:

1. Geopolitical Risks: Nations tied to U.S. supply chains may face similar standoffs, creating sudden disruptions in key imports like coffee, produce, or manufacturing materials.

2. Industry Preparation: Freight professionals should stay nimble, monitoring tariff developments and alternative sourcing options for clients.

3. Trump's Tariff Power: This episode reinforces that tariffs remain Trump’s go-to tool for diplomacy, with significant implications for global trade patterns.

TOGETHER WITH SYNC LOGISTICS TRAINING

Sync Logistics Training is a training platform built specifically for the transportation industry.  

• You want higher margins → Teach people to negotiate more effectively

• You want a more reliable carrier network → Teach people how to properly source capacity

• You want better customers → Teach people how to qualify their prospects

Best-in-class brokerages make training a priority for a reason. 

🌎 AROUND THE FREIGHT WEB

🌄 A Covenant View. Covenant Logistics Group expresses optimism about a rebound in the freight market in 2025, with CEO David R. Parker stating, “I think that the environment [market conditions] is getting better. I think optimism is getting better.”

🚨 Toronto Police's Largest Bust. Toronto police announced their largest-ever cocaine bust, confiscating $83 million worth of the drug, weighing in at 835 kg. The shipment bore the “hallmarks” of the Jalisco New Generation Cartel, according to Chief of Police Myron Demkiw.

🚛 Logistics Leaders Optimistic. The 19th BGSA Supply Chain CEO Conference brought together 380+ leaders, sharing insights and optimism for 2025.

↕ Triumph Payment Up; Financial Down. While EBITDA at Triumph Payments hit a record high (up 45% within the last year), Triumph Financial's stock tanked, dropping 14.2% last Wednesday.

🤝 9 Acres and a Sell. Trans American Trucking Services sold off its “rare” 9-acre trucking lot in New Jersey for over $33 million. Mitch Arthur, Vice President of Investments at Oliver Street Capital, called it a “unique opportunity” to acquire the IOS sites.

🎣 THE FREIGHT CAVIAR CORNER

• FreightCaviar Podcast: This week on The FreightCaviar Podcast, Dylan Admire details the explosive Freight Essentials v. GlobalTranz & Worldwide Express case and how it may change the face of freight agent programs. Tune in on YouTube, Spotify or Apple Podcasts.

• Conferences: Next month, Manifest: The Future of Supply Chain & Logistics will bring together 6,000+ attendees and 350+ speakers across 150+ sessions in Las Vegas for the industry’s most anticipated event. Register here.

• Find Shippers Fast: Looking for customers? Check out Shipper CRM, the world's largest shipper database, and apply for access here.

FREIGHT MEME OF THE DAY