Cargojet Inc. could benefit from the tariff threat looming over North America by seizing on the new supply routes opened up by a trade war, its top executives say.
Pauline Dhillon, co-CEO of the air freight company, said shippers looking to avoid sending their cargo through the U.S. could opt for shipments straight into Canada, including via freighter aircraft.
"Cargojet is uniquely positioned to excel during tariffs, and may even benefit from direct shipments to Canada versus carriers going into the United States," Dhillon told analysts on a conference call Tuesday morning.
Rather than causing a drag on its business, the potential import taxes have made Cargojet "hopeful that we see more freight coming into Canada," she said.
U.S. President Donald Trump has threatened to impose sweeping tariffs of 25 per cent on Canada and Mexico as early as next month, with Prime Minister Justin Trudeau vowing to retaliate.
The Bank of Canada has projected that tariffs across the board could bring on a recession and boost inflation within the first year of a trade war.
Jamie Porteous, Cargojet's other chief executive, pointed to its growing international charter service that would steer clear of any U.S. import duties.
"Our scheduled charter services from China to Canada were specifically and deliberately targeted to serve the Canadian market, leveraging our domestic network, avoiding the U.S. market and any potential tariff restrictions," Porteous said.
"As manufacturers across the globe plan shipments directly into Canada to avoid any potential U.S. tariffs versus routing them through Mexico and the United States, it may present new opportunities for Cargojet — although this remains a very fluid situation."
The Mississauga, Ont.-based company said charter freight revenues rose by 136 per cent year-over-year in its latest quarter, with chances for further growth through the four additional Boeing 767 freighters joining the fleet this year.
In 2024, full-year sales topped $1 billion in a record for the 24-year-old company, while fourth-quarter revenues jumped by a third year-over-year, Cargojet reported on Monday.
However, the month-long Canada Post strike late last year dampened its domestic revenues, it said.
This report by The Canadian Press was first published Feb. 18, 2025.
Companies in this story: (TSX:CJT)
Christopher Reynolds, The Canadian Press
