Freight Forwarding & Traversing the Red Tape

Moving freight across the U.S./Canadian border can be more problematic than most shippers realize. Our recent research study reveals the myriad complexities of the customs clearance process—and the downfalls of making the trip alone.

By ·

A gentle surge in U.S. manufacturing and more emphasis on “near shoring” indicates that trade with Canada will continue to grow this year, major forwarders say. This is a trend confirmed by economists at the Toronto-based CIBC World Markets who report that Canada will remain the biggest trading partner for the U.S. for years to come.

Demand for U.S. goods is surging, says CIBC, with wholesale trade inventories climbing 1.7 percent to $52.4 billion this past May—the largest percentage increase since January 2007. “The volume of cross-border growth is impressive,” says CIBC analyst Rob Shotte. “The inventory-tosales ratio is a measure of the time, in months, required to exhaust inventories if sales were to remain at their current level. Overall, 16 of the 25 wholesale trade industries reported higher inventory levels.”

The impact of the current environment for U.S. shippers has been significant, Shotte adds. U.S. wholesalers in construction, forestry, mining, industrial machinery, equipment, and supplies posted the biggest inventory gains in dollar terms, followed by agricultural wholesalers when shipping into Canada, CIBC notes in a recent report.

One of the world’s premier trade services companies concurs with this observation. “A combination of forces are at work when examining this uptick,” says Amy Magnus, district manager for A.N. Deringer. “Business has been good, and seems to be getting better. But U.S. exporters trying to go it alone may still find some unexpected barriers and choke points.” 

click here to download the PDF article
Click here to download PDF article


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Deringer · Exports · Freight · Inventory · All Topics
Latest Whitepaper
Identify Cost Savings with Real-Time Visibility
To offset the impact of late shipments, unreported delays and detention, shippers are increasingly requiring 100 percent visibility into the location and status of their freight.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...