Taking to the air to address U.S. tariffs

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This article was published 04/03/2025 (504 days ago), so information in it may no longer be current.

U.S. President Donald Trump’s tariff threats are forcing Canada to reassess its economic future. Two strategies that come to the fore are self-reliance and trade diversification. More local consumption can help reduce Canadian reliance on the U.S. market and strengthen the economy. Trade diversification is different. It is easier to convince consumers to buy local than to find new markets for Canadian products, or alternative import suppliers.

Trade diversification faces economic barriers of time and distance. Exports to the U.S. can be made by truck, rail, air, marine and pipelines. For all other export markets, except for Mexico, transport is limited to ships that are slow, or jet airplanes that are extremely fast and very expensive. Cargo airships present a compromise in cost and speed between ships and airplanes that would bring all world markets “closer” in a logistical sense.

Time and distance are important to the trade of perishable products. In most food categories, Canada is a net exporter, but not fresh fruits and vegetables. Except for stored crops, greenhouse and summer production, fresh produce is imported year-round. The U.S. provides 32 per cent of Canada’s fruit imports, and 65 per cent of vegetable imports for a total of two million metric tons (MT). The second largest supplier, Mexico, provides Canada with one million MT of fruits (14 per cent) and vegetables (22 per cent).

The diversity and quality of fruits and vegetables available in Canada is like an eighth wonder of the world. Most fresh fruit and vegetable imports are trucked over 3,000 kms to reach Canada. The combination of refrigerated tractor-trailers, freeways and cheap diesel fuel makes U.S. produce very competitive.

For airships to divert trade away from the U.S. market, they must compare with the delivered price of produce arriving by truck. A recent study entitled: “Airships Versus Long-Haul Trucking: Carbon Footprints and Competition,” considered whether an airship the size of the Zeppelin Hindenburg (100 MT lift), could match the costs of bringing tomatoes from Mexico by refrigerated tractor-trailers. The answer is yes, because of size and speed. The old Zeppelins cruised at 145 kmph. The airship would make the trip from Mexico in only 20 hours, versus four to six days by road.

Airships could broaden the sources of fruit and vegetable imports. Canadians never see tangerines or oranges from Mexico in their stores because the U.S. bans their entry. U.S. phytosanitary regulation does not apply to air transport. Direct airship flights could expand food supply chains to all of Latin America. Peaches from Chile and mangos from Brazil would arrive in under three days, while Cuban peppers would be less than one day away.

Cargo airships could enable Canada to diversify food exports as well as reducing its dependence on the U.S. for fresh produce. Airships encourage two-way trade because they have a constant lift. If 100 MT are unloaded, another 100 MT must be put back on. Any paying cargo is better than just loading ballast water. Countries sending fresh fruits and vegetable to Canada will create low-cost return freight rates for value-added food products, like Canadian pork, beef and temperate zone produce (e.g., potatoes and apples).

North America is a continent, but in transportation terms it is like a huge island. The difficulty in reaching markets that are separated by oceans is why 75 per cent of Canadian imports and exports are with the U.S. Past efforts to diversify Canadian trade have always crashed on the realities of time and distance to reach other markets competitively.

Cargo airships present a paradigm shift in transportation. While this discussion has focused on the movement of perishables, as the “low hanging fruit,” airships could move any cargo now transported by truck, containers, and cargo jets.

Transport vehicles often reach a volume limit for bulky products, such as furniture, before meeting their weight limit. Airships are only limited by weight because they are so big. This capability of airships to carry perishable and bulky products could open new trade routes and possibilities.

Canada cannot move physically further away from the U.S., but cargo airships could move Canada economically much closer to alternative markets.

The northern climate guarantees that buying locally is not a year-round solution for fresh produce. Airships could open new export markets for Canada in the tropics. Airships coming north with tropical fruits and vegetables could return with Canadian food exports.

It is easy for Canadians to take offence at the remarks and threats of President Trump, but maybe he has done Canada a favour by forcing us to look at our options. Projects for large airships are underway. The cargo airship is a viable means of transport.

If Canada wants to diversify its import and export markets, cargo airships are worth careful consideration and support.

Barry E. Prentice is a professor and the director of the University of Manitoba Transport Institute.