GRAND RAPIDS, Mich.- After nearly a 16-month shutdown from COVID-19, Canada reopened its borders for nonessential travel on Monday, August 9. According to the Detroit Free Press, Americans who choose to cross the border must be fully vaccinated 14 days prior to entering Canada and verify proof of the vaccination.
What does this mean for freight?
The reopening will be a big driver for freight demand and will have significant implications for the industry.
In 2019, 25 million residents visited Canada before the pandemic hit. The projection of traffic is expected to rise. According to Freight Waves, the opening of the border will be extremely beneficial for the industry.
Every year, nearly $700 billion of goods are shipped over the U.S. and Canada border. 62% of these goods are transported by truck, transpiring into the main method of cross-border transportation. The reason for this results from the combination of important factors including, timing, visibility, and cost.
Causes
- Canada border opens nonessential travel
- Significant driver for freight demand
- 3PLs prove cross-border success
Cross-Border Transportation
Carriers are an important aspect when shipping goods across the border. It is vital to get products delivered efficiently for moving loads. 3PL (third-party logistic) companies are the safest and most reliable providers hauling cross-border freight.
3PLs
Through FWF’s extensive carrier network, matching the right carrier for every load is vital. FWF secures capacity with the safest and most reliable trucking companies in the industry for cross-border shipments.
Cross-border shipments typically pick up in April, May, June, July, and August each year. Looking back at the previous four months, FWF has quadrupled cross-border shipments from Canada to the U.S. compared to the beginning of 2021, resulting in a 107% increase from March to April.
Overview
With U.S. to Canada border reopening for nonessential travel, freight will see a significant impact. For now, the U.S. has decided to keep its land border closed for nonessential travel. Once the U.S. border does open, communities will see an influx for demand of goods and services.
