Category Archives: Trucking Companies

Trade And Investments Between The US And Canada

The economic and investment relationship between the US and Canada supports millions of jobs for both countries through direct foreign investment, cross-border trade, and integrated economies. Almost one-half of the goods that the US purchases from Canada are raw materials that are needed in manufacturing. Meanwhile, Canada buys more from the US than any other country in the world.  

The automotive industry is the best example of the strong relationship between the US and Canada. The industry has a highly integrated supply chain that results in nearly $110 million in bilateral trade. In both countries, there are factories specializing in specific components required in manufacturing a vehicle. When a car rolls off the assembly line, some of its components and materials have crossed the borders of the two countries multiple times during the production process.

Agriculture is another sector that has largely benefitted from the sophisticated cross-border supply chains. High-quality and safe products being purchased by Americans are more likely to have crossed the borders. For example, the lettuce and tomato on the hamburger may have come from Canada but the beef and buns may even be from both countries.

A number of trade policies between the two North American countries have been modernized to make sure that they are free and fair. The United States-Mexico-Canada Agreement (USMCA) that replaced NAFTA will continue to support jobs and maintain free trade in North America while making sure that benefits are mutually shared.

In addition to the trade relationship, both the US and Canada have an important investment relationship. The US is the single largest investor in Canada while Canada is the largest source of foreign direct investment in the US. Canada is a most ideal place for US businesses to grow because of its stable business climate, low taxes and business costs, highly educated and skilled workforce, generous incentives for research and development, and access to global markets.

Cross-border trade in North America will not be possible without the presence of logistics and trucking providers like Titan Transline. Their reliable transportation solutions allow the seamless transport of goods on time for a highly competitive price.

2020 Saw A Drop In Transborder Freight Between Canada, Mexico, And The US

Bad news for companies that handle logistics and cross-border trucking like Titan Transline, a report from the US Bureau of Transportation Statistics shows that transborder freight dropped in 2020.

According to the USBTS, 2020 saw a 13.3% dip in transborder freight compared to 2019. The data was released on March 8, 2021, which is noted as following the freight moved by air and vessel, pipeline, truck, and rail, and notes the decline’s start at the onset of the coronavirus outbreak, which continued all the way to November 2020.

The data noted that transborder freight did see a slight increase of 0.4% in December 2020.

Trucking was the preferred means of transborder shipping, accounting for 65.3% ($695bn) of 2020’s $1.06tn freight total, but even it saw a drop from 2019, having gone down by 10% compared to the preceding year.

Trucks moving across the US-Canada border moved $309bn worth of freight, accounting for 58.8% of all border freight in the north, while US-Mexico cross-border trucking accounted for $386bn of freight moved between the two countries, which is 71.1% of all border freight at the southern border.

Shipments between Canada and the US went down by 9.9%, while US-Mexico freight saw a 10.1% decline.

The busiest truck border ports in 2020 were:

  • Laredo, Texas ($163bn)
  • Detroit ($95bn)
  • Buffalo-Niagara Falls, New York ($51bn)

These three truck border ports combined accounted for 44.6% of the transborder truck freight of the entirety of 2020.

The most common truck commodities for 2020, accounting for 48.3% of the year’s total, were:

  • Computers and parts ($136bn)
  • Electrical machinery ($110bn)
  • Motor vehicles and parts ($89bn)

Trucking was the most commonly-used option for US-Canada transborder shipments for 2020, followed by rail ($79bn), pipeline ($48bn), air ($32bn), then vessel ($20bn).

Notably, the overwhelming majority (99.4%) of all the pipeline freight that moved between the US and Canada were mineral fuels, like gas and oil. Most of these travelled via the pipelines that linked Canada and Midwestern US.

US-Mexico transborder shipments were dominated by trucking ($386bn), with rail ($70bn) following at a distant second.

The data from the USBTS’s release does not have adjustments for inflation or seasonal changes.

Business Remains Good For The Trucking And Freight Industry

The trucking and freight industry appears to do better than the entire economy of the United States. The reason behind this is their ability to adjust with changes in the supply chain caused by the coronavirus pandemic. Business was really good for flatbed trucking in July and the spot market is also doing well.

According to the results of DAT Solutions latest survey, the trucking and freight industry is holding its own during the pandemic-induced recession. The national average rates for vans, flatbed trucks and refrigerated trucks for August are at the high marks for 2020. Disruptions in the supply chain caused by the coronavirus resulted to more freight in the spot market. Previously, demand for truckload capacity declines during this time.

The DAT survey also revealed that fleets were able to shift the types of loads they carry based on the demand of consumers. Load volumes out of the top 10 fulfilment warehouse markets rose by 25% in July. There was a surge of imported home improvement materials and stay-at-home goods throughout the supply chain. The surge was particularly noticeable at the Midwest distribution hubs including Joliet, Illinois and Indianapolis. Spot van prices increased by 10% to an average $3.11 per mile in dedicated routes like Memphis to Atlanta.

A change happened at spot market dynamics last week because of the hurricane season. After hurricane Isaias, more loads moved out of Florida which was unusual. Van volume out of Lakeland increased by 20% if compared to the week before the hurricane.

At the beginning of the pandemic, the freight market sustained traumatic decrease in volume because of less consumer demand. Unemployment rates were high and Congress failed to deliver a bipartisan solution that can stimulate demand. While there will be long term improvement for the economy to return to pre-Covid19 level of activity, the trucking economy is moving to the right direction.

For many types of equipment and materials, flatbed trucking is the right shipment option. You can choose from a variety of flatbed options according to your specifications. Traditional flatbed or expanded flatbed can be used to transport building materials, heavy construction equipment and manufacturing components.

Canadian Trucking Companies Challenged By Shortage Of Drivers

If you will ask any of the Canadian trucking companies on the challenges they are facing today, they will tell you that it is driver shortage. Job vacancy rates in trucking and logistics sector are quite high because older drivers have retired. Disruptions to the supply chain could exacerbate because of the shortage of truck drivers, recent rail blockages and the COVID-19 outbreak.

According to the research by Trucking HR Canada and Conference Board of Canada, there are approximately 300,000 truck drivers in Canada that move an estimated $850 billion of goods every year. This includes $550 billion in imports and $300 billion in exports. For comparison, Canadian National Railways only transports about $250 billion worth of goods annually.

Shortage of drivers is particularly pronounced in long-haul drivers where job vacancy rate is 9.4%. Industry rate is about 6.8% while national average is 3.3%. Trucking companies stepped up to ensure that goods are moving when trains weren’t available because of the rail blockages in February. More truck drivers are required in case of future disruptions caused by either protests or corona virus.

According to Angela Splinter, chief executive of Trucking HR Canada, the fluidity of the supply chain is already negatively affected by driver shortages and disruptions and uncertainties in the market are not helping.

The trucking industry lost $3.1 billion in revenues in 2018 due to driver shortages. Trucking companies have to turn down work and delay plans for expansion. Aside from drivers, 350,000 people employed by trucking logistics in shipping, receiving, courier services, warehouse and distribution centers are affected.

Younger people are not lining up to become employed as truck drivers even if the average annual salary is $67,500. There are some perceptions on the industry and work life balance challenges for jobs that require being away from home. 3.5% of truck drivers are women but they have expressed concerns about safety at rest stops.

You can choose from any of the Canadian trucking companies to expedite transport of goods throughout all of Canada and the United States. State-of-the-art and specially-engineered equipment ensures unprecedented shipping speeds for large and small shipments, over-sized loads, temperature-controlled goods and fragile items.