The Economic Advantages Of Cross-Border Trucking

Canada and the United States have left their common border open for the movement of freight but have restricted non-essential trips. On an average day, about 30,000 trucks cross the border between the US and Canada carrying more than $1 billion worth of food and medicine.

Preserving the movement of trucks across the border is very important to ensure that the flow of critical supplies like food and medicine will be uninterrupted. The economic damage from interrupting the flow of cross-border trucks would be direct and indirect.

Direct damage will result when the flow of needed goods is cut off. For example, one of the major exports of Ontario to the United States is pharmaceuticals. Truckloads of agri-food products from live animals to processed food are shipped to and from Canada and the US.

Meanwhile, indirect damages will result when supply chains that straddle the border breakdown because it will be impossible for factories and other economic activities to continue with their operations. For example, the production of cars and SUV’s are highly reliant on parts produced by hundreds of factories that pass them along to suppliers that gradually combine them into larger parts before they are delivered at final assembly plants. Nearly all of the factory-to-factory movements are handled by cross-border trucking providers in Canada and the USA. When trucks are stopped from crossing the border, automotive production will stop.

For some industries like the food supply chain, there have been discussions to shift towards separate domestic supply chains. In industries like automotive, aerospace, defense, and industrial machinery where scale is very important, a consolidation will systematically work against Canada. In such industries where the supply chain cannot be easily duplicated for each country, the country that will benefit is the larger country which is the USA. Since cross-border logistics has been proven to work during a crisis, it would be beneficial for business investment in Canada.

The size of your shipment does not matter because Titan Transline has efficient transport options backed by the best-in-the-industry service, expertise, and verifiable data. The safety of your shipment is the priority. You will be updated real-time during the entire transport process.

Facebooktwitterredditpinterestlinkedinmail