Freight forwarders navigate disruption, labour shortages and rising complexity

Since the onset of the pandemic, the global supply chain has become accustomed to operating in a state of permanent disruption. From tariffs and trade policy shifts to technology transformations and global conflicts, every industry in the logistics sector has shifted from focusing on cost-effective measures to risk management orchestration.

Freight forwarders are a vital cog in the supply chain, one that no longer plays the role of simple coordinators but rather strategic partners that help navigate uncertainty.

Now more than ever, there are key challenges facing Canadian freight forwarders, one being ongoing labour shortages coupled with tightening capacity across all modes of transportation.

“The new norm in Canada is the seasonal driver shortage, as many drivers step away during the winter months, taking extended vacations, returning home abroad, or parking equipment to avoid the risks and costs of winter driving,” said Noah Hoffman, vice-president for Canada with C.H. Robinson. “At the same time, the Canadian trucking market is contracting. Earlier this year, multiple mid-sized carriers left the market or entered receivership. That lost capacity isn’t being quickly replaced.”

Hoffman said these labour shortages, rising costs and uncertainty over the upcoming Canada-U.S.-Mexico Trade Agreement are making carriers cautious about investing.

“Rather than rejecting freight, many are managing risk by reducing exposure to higher-risk lanes or requiring higher rates when flexibility is limited,” he said.

For carriers hauling cross-border, there is an added strain with the current trade uncertainty and additional requirements for importing and exporting with the U.S.

“Capacity is tightening on key lanes as carriers factor in regulatory compliance and the delays that have come with tariff complexity. Trucks are sometimes stuck near the border for days while customs brokers deal with backlogs,” said Hoffman. “As a result, shippers are placing greater value on logistics providers with strong customs coordination and dedicated cross-border capacity, where reliability at the border matters as much as price.”

Sheila Berry is the chief revenue officer for UniUni, a Canadian last-mile, cross-border shipping company for e-commerce, and she echoes Hoffman’s sentiment that freight forwarders are feeling the impact of increased scrutiny at customs over documentation, tariff classification and de minimis eligibility.

“What might once have been considered a minor paperwork issue can now create real delays, especially as U.S. Customs continues strengthening data validation and compliance expectations,” said Berry, highlighting the importance of properly navigating the tariff landscape. “For many forwarders, the physical movement of goods across the border has not changed dramatically. Instead, success often depends on having strong brokerage partners who understand the complexities of e-commerce shipments, where commodity types can vary widely and speed is always critical, and ensuring documentation is accurate well before freight reaches the border.”

Source diversification

As the Canadian government continues to look for alternative trade partners in an effort to diversify and minimize reliance on the U.S., Hoffman says forwarders could face a more complex environment.

“Many Canadian exporters have long had one market, the United States. If you’ve just been shipping to the United States under a free-trade agreement, things have been pretty straightforward,” he said. “But what if you add the EU? Suddenly you have to worry about a host of unfamiliar regulations, particularly on food. With Canada’s trade relationships changing, exporters are having to pivot and diversify in a very short time. How well they do that may determine their future success.”

Individual companies are also looking to diversify and establish “sourcing hierarchies.” While Hoffman says this is not a new strategy, it has evolved beyond simply adding one additional source as a backup.

He suggests freight forwarders prioritize geopolitical stability, business continuity and cost efficiency when looking at sourcing from other countries.

“Sourcing from different countries in each tier not only affects your purchase price and tariffs. There are ripple effects on the costs associated with port selection, ocean carrier, shipment timing, inland transportation and even last-mile delivery,” said Hoffman. “Our best advice is not to make sourcing decisions on tariffs alone. You might lower your tariffs by switching where you buy your raw materials or finished goods, but it might introduce an unacceptable level of port congestion and delays into your supply chain.”

Expanding your reach when it comes to the industry partners you work with is also important. As Berry explains, using multiple gateways or bonded facilities helps reduce reliance on a single corridor, and digital tools like AI-driven classification and risk-scoring systems help companies respond to changing tariff policies and avoid documentation errors.

“Just as important is working with carriers, brokers and customers who share the same expectations around speed and data accuracy, particularly for e-commerce shipments,” she said. “Accurate shipment data and strong collaboration across partners help minimize clearance issues and delays. While transportation costs can often be managed operationally, tariff-related volatility remains harder to control and frequently depends on waiting for updated regulatory guidance.”

Berry admits that in many cases, larger forwarders hold an advantage over smaller players, as they can invest more heavily in AI tools to automate compliance checks and guide routing decisions in real time. However, as these digital tools continue to advance, they are becoming more accessible.

“Smaller and mid-sized forwarders can increasingly compete by leveraging modern platforms and working closely with experienced brokerage partners who help ensure regulatory compliance as requirements evolve,” she said.

Hoffman says AI technology in the global supply chain is a game-changer, allowing companies to process orders at a speed and accuracy humans could not achieve on their own.

“While the technology does everything from providing a price quote to a tracking update,” he said, “our people are spending less time on these operational tasks and devoting more time to the most valuable role of a logistics provider: supply chain design, strategy and optimization and guiding customers through the more frequent and more intense supply chain disruptions happening all over the world.”