When it comes to moving goods between Canada and the US, transborder trucking is the primary method for getting things done. It’s the backbone of our economic relationship, responsible for hauling over 55% of all cross-border trade. And with billions of dollars’ worth of stuff moving back and forth every year, it’s a big deal for businesses on both sides of the border.
The Significance of Transborder Trucking
Transborder trucking is a cornerstone of the economic relationship between Canada and the US. According to recent statistics, trucking accounts for over 55% of cross-border trade between the two countries, making it the primary mode of transportation for goods. With billions of dollars’ worth of merchandise moving between Canada and the US each year, efficient and reliable trucking services are essential to sustaining the flow of trade.
Transportation Modes:
- Trucks: Carried 55% of freight between Canada and the United States in 2022.
- Pipelines: Accounted for 18% of freight.
- Rail: Contributed 16%.
- Vessels: Handled 6%.
- Air: Managed 5%.
Value of Trade:
- In 2022, U.S. freight flows with Canada and Mexico equaled $1.57 trillion dollars.
- The total weight of that trade was 654.0 million tons.
- Besides oil and energy products, the U.S., Canada, and Mexico are also each other’s largest trade partners for agricultural goods.
- Interestingly, since 2015, there have been instances where U.S. freight with Mexico by value has surpassed that of Canada, while the weight of freight flows with Canada continues to exceed that of Mexico.
Growth Trends:
- Truck freight has grown faster than rail freight for U.S. trade with Canada and Mexico combined.
- In 2022, trucks shipped $948.0 billion worth of goods from and to Canada and Mexico, while rail accounted for $210.2 billion.
- From 2021 to 2022, the value of truck freight increased by 14.5%, and rail increased by 12.7%.
- Pipelines carried $149.2 billion of mostly energy products like oil and gas, while waterborne vessels transported $138.8 billion of freight, and air cargo carried $57.8 million.
Mode-Specific Insights:
- Canada: Has a higher weight-to-value ratio of commodities being traded, such as vehicles, plastics, timber, and oil.
- Mexico: Has a higher value-to-weight ratio of commodities such as auto parts and agricultural products.
Truck Freight Trends:
- U.S. freight transportation by truck with Mexico increased at a faster pace than Canada since 2020.
- From the pandemic lows in April 2020 to June 2023, freight by truck with Canada increased from $17.8 billion to $39.5 billion, while freight by truck with Mexico grew from $20.8 billion to $49.0 billion.
Regulations and Compliance: Navigating the Border
When it comes to transborder trucking, compliance with regulations is paramount. Partnering with a reputable transborder trucking company ensures that your shipments meet all necessary requirements for smooth border crossings. But what exactly should you look for in a great transborder trucking company?
First and foremost, reliability is key. A top-notch transborder trucking company should have a proven track record of delivering shipments on time and without incident. Look for companies with extensive experience in cross-border logistics and a thorough understanding of the regulatory landscape.
Additionally, transparency and communication are essential. Your trucking company should keep you informed every step of the way, providing updates on the status of your shipments and any potential delays or issues that may arise.
There are specific requirements for transborder shipments to cross the border. When shipping goods between Canada and the US, there are several documents you’ll need to have in order:
- Bill of Lading (BOL): This document serves as a receipt for the goods being transported and contains important information such as the shipper, consignee, and description of the goods.
- NAFTA Certificate of Origin: For shipments qualifying under the North American Free Trade Agreement (NAFTA), a certificate of origin is required to claim preferential tariff treatment.
- Commercial Invoice: This document provides details about the transaction, including the value of the goods, the terms of sale, and the parties involved.
In addition to these documents, the role of the customs broker is crucial in pre-clearing shipments before they reach the border. Through the Pre-Arrival Review System (PARS), customs brokers submit required documentation to Customs and Border Protection (CBP) or the Canada Border Services Agency (CBSA) for review prior to the arrival of the goods at the border. This helps expedite the clearance process and minimize delays.
Security is another critical aspect of transborder trucking. With the ever-present threat of terrorism and smuggling, both the US and Canada have implemented security programs aimed at safeguarding the supply chain. Programs such as Partners in Protection (PIP) in Canada and the Customs-Trade Partnership Against Terrorism (C-TPAT) in the US provide benefits to trusted traders who meet certain security criteria. By participating in these programs, companies demonstrate their commitment to maintaining the integrity and security of the supply chain.
Navigating the regulatory landscape of transborder trucking can be complex, but with the right partner and a thorough understanding of the requirements, businesses can ensure efficient and compliant cross-border shipments. Choose a transborder trucking company that prioritizes compliance, communication, and security, and you’ll be well on your way to successful cross-border trade between Canada and the US.
The Role of Transborder Trucking Companies
Transborder trucking companies serve as the backbone of cross-border logistics, providing efficient and reliable transportation services to meet the diverse needs of shippers. With specialized expertise in navigating customs procedures, border crossings, and regulatory requirements, these companies play a crucial role in facilitating trade between Canada and the US. From full truckload (FTL) shipments to temperature-controlled freight and intermodal transportation solutions, transborder trucking companies offer a range of services tailored to the unique requirements of cross-border trade.
XTL Transport: A Trusted Transborder Partner
For over three decades, XTL Transport has been a trusted provider of
transborder transportation solutions, connecting businesses across Canada and the US. Since 1985, XTL has leveraged its expertise in truckload, warehousing, logistics, intermodal, and temperature-controlled transport to serve as a strategic distribution partner for clients. With a commitment to excellence and customer satisfaction, XTL delivers customized solutions that optimize supply chain efficiency and drive business success.
So if you’re looking to expand your reach and explore new markets, transborder trucking is the way to go. And with XTL Transport by your side, you can ship with confidence, knowing that your goods are in good hands every step of the way.