Canada has a long-standing trade and economic relationship with the United States. They share the longest international border with a large percentage of Canadians living within 150 miles of the border. Logistics-wise, there are a number of differences and similarities that must be considered by those who want to engage in lucrative cross-border trade.
Key challenges in cross-border trade
- Differences in transportation structure – Canada is a very large country with a flat highway that runs across the southern portion of the country. At least 85% of the population resides within 150 miles of the US border. Most of the urban density is spread out across the 5 major cities that include Toronto, Montreal, Calgary, Vancouver and Edmonton. The challenge is the rural area which is a difficult market to serve.
- Both Canada and the US are facing a shortage of truck drivers. According to the Canadian Truck Alliance, Canada will be short of 33,000 truck drivers by 2024. The shortage of truck drivers in the US can impact the entire supply chain because at least 70.6% of all its freight tonnage are moved by trucks across the border. If the trend does not change, it will severely affect the trucking industry and the broader supply chain.
- The transport of hazardous goods is regulated differently in Canada and the US. Transport of dangerous goods is regulated by the Canadian Transportation of Dangerous Goods Act. Its equivalent in the US is the US Department of Transportation Code of Federal Regulations. Both countries have the same training requirements for personnel who are handling and transporting dangerous goods; however, there are also differences in rules and infrastructure.
Because of the highly lucrative cross-border trade, shippers must make the effort to understand the nuances of cross-border shipping and the key differences in the countries’ rules and regulations before making the best possible decision.
Meanwhile, if you are in need of a 3PL transportation and logistics provider, your best option is Titan Transline that has years of experience in cross-border logistics. They understand the importance of goods and prompt delivery that is why every shipment is handled with care and personalized service.