Implications of Canadian Wildfire Smoke on the U.S Trucking Market

June 29, 2023

Canadian Wildfire’s Smoke Threatens US Air Quality and Raises Concerns for Crop Yields, Impacting the Trucking Market.

Wildfire Smoke Spreads Across the U.S.

Smoke from Canadian wildfires has spread across the United States, causing significant air quality issues in the Northeast and Midwest. Originating from around 150 wildfires in Quebec, the smoke has been reported as far south as Texas and New England. This widespread pollution is not only affecting air quality but also raising concerns about its potential impact on agriculture and the trucking industry.

Impact on Crops and Air Quality

USDA meteorologists have confirmed that the wildfires have not yet directly impacted emerging row crops, but experts worry about indirect effects. Although no visible damage has occurred, experts are concerned that the smoke could harm corn and soybean yields in the future. As the growing season progresses, these effects could become more apparent, so industry professionals must continue monitoring the situation closely.

Smoke Effects of Reduced Solar Radiation

The wildfire smoke could block sunlight, which is crucial for crop growth. Extended periods of smoke exposure can reduce solar radiation, limiting photosynthesis and weakening plants’ ability to thrive. For corn, the reduction in sunlight intensity, combined with higher ozone levels and increased sunlight diffusion, could hinder its growth and lower potential yields. This issue could become more severe if the smoke persists over time.

Risks for Corn During Grain Fill

The grain fill stage, which determines corn yield, is still weeks away. However, prolonged smoke exposure could already be impacting corn growth. The smoke suppresses convective activity, which leads to a lack of summer rain showers. Without sufficient rainfall and sunlight, corn may struggle to develop properly, ultimately affecting its final yield.

Impact on Trucking Market

A decrease in crop yields, especially corn and soybeans, will likely reduce trucking demand. Fewer crops to transport means lower demand for trucking services, leading to lower spot rates. This could create a loose market scenario, especially in Midwest states like Iowa, Illinois, Nebraska, and Minnesota.

Long-Term Considerations for Shippers

Although it will take weeks to assess the full impact on crop yields, the situation could worsen if smoke levels remain high. Shippers should monitor the situation closely as it may affect the trucking market in the coming weeks.