Factors To Consider In US-Canada Cross-Border Trade

The longest international border across the world is shared by the USA and Canada. There is also a centuries-old relationship between the countries that has created a favourable shipping logistics environment. However, there are existing differences between USA’s and Canada’s transportation rules and infrastructure that can affect a business’s best possible decisions.

Shippers must be aware that transportation infrastructure in Canada is different from the USA. Canada is the second largest country in the world with a single flat highway that runs across the country’s southern portion which is different from the US interstate and highway infrastructure. Urban density is spread across the five major cities of Toronto, Montreal, Vancouver, Calgary and Edmonton. The rural areas can be a difficult market to serve for shippers.

Trucking providers in both countries suffer from driver shortages which has become a difficult problem to the entire supply chain. According to Canadian Trucking Alliance’s David Bradley, there will be a shortage of 33,000 drivers in Canada by 2024. Since 70.6% of all freight tonnage is moved through cross-border trucking, US driver shortage could surpass 174,000 by 2026.

Electronic logging devices are mandated in both the USA and Canada. Commercial vehicles in the US that weighs more than 10,000 tons with a model year of 2000 and newer are required to have an FMCSA-approved electronic logging device (ELD). The rule applies to most motor carriers. Drivers are also required to maintain records of duty status. The same ELD rule also applies to commercial buses and trucks in Canada.

The Transportation of Dangerous Goods Act governs the transportation of dangerous items in Canada whereas in the USA it is the US Department of Transportation Code of Federal Regulations that is in charge. Both countries have similar requirements in the handling and transport of dangerous goods but CFR only applies the rules to hazardous materials in-commerce, not in private vehicles.

Reliable transnational transport options are offered by Titan Transline to clients across all of North America. Years of experience in cross-border transport and logistics guarantees a dependable and seamless transport of products with regular timely updates and reports.