Canada is a vast and diverse country inhabited by reputedly polite people. While the stereotype of Canadians saying “eh” is subject to regional debate, our nation is deeply influenced by and integrated into the global economy. However, the unique geography, transportation infrastructure, regulations, and other factors significantly affect the experience of individuals seeking to transport goods to the Canadian market.
Whether you’re a newcomer to shipping in Canada or have some experience but are unsure if you’re overlooking crucial details, this article by the experts at Make Logistics Happen provides essential insights you need to know.
What you need to know about Canada’s geography
Canada ranks as the second-largest country globally in terms of total geographic area, encompassing a vast landmass that stretches across three oceans, spans six time zones, and includes the world’s most northerly permanent settlement, Alert, Nunavut.
With a population of 37.5 million people, Canada averages around 4 individuals per square kilometer, utilizing the metric system for measurement. According to the 2016 Census, approximately 66 percent of Canadians reside within 100 kilometers of the U.S. border. The most populous provinces, in descending order, are Ontario (with 14.2 million people as of 2017), Quebec (8.4 million people), British Columbia (4.8 million people), and Alberta (4.2 million people). Seven out of ten Canadians live in urban areas, with the five largest cities being Toronto, Montreal, Calgary, Ottawa, and Edmonton. Since 2001, Canada has experienced the highest population growth among G7 countries.
What you need to know about Canada’s culture
Canada’s demographic landscape is undergoing significant transformation. According to the 2016 Census, over one in five Canadians are foreign-born. The majority of recent immigrants to Canada originate from Asia (61.8 percent) and Africa (13.4 percent), although the 2016 Census reported more than 250 ethnic origins. Approximately 22.3 percent of Canadians identify as belonging to a visible minority group.
Canada is officially bilingual, with English and French designated as the two national languages. Consequently, any goods sold in Canada must feature labeling in both languages. Reflecting its colonial heritage, Canada employs British English spelling rather than American English.
What you need to know about trade in Canada
According to data from Transport Canada, the United States stands as Canada’s foremost trading partner, representing over 60 percent of our total trade over the past decade. In 2018 alone, trade with the U.S. amounted to $741 billion, with $438 billion in exports from Canada and $304 billion in imports from the U.S. Supply chains between Canada and the U.S. are deeply intertwined, often seeing products cross the border multiple times during the production process.
Canada’s other significant trading partners include China, Mexico, Japan, and the United Kingdom, collectively accounting for slightly over 17 percent of our total international trade in 2018.
In terms of transportation, over half of central Canada’s merchandise exports by value (excluding pipelines) traveled by road in 2018, contrasting with 32 percent in the western region and 19 percent in the Atlantic provinces, where shipping plays a more prominent role in exports.
Interprovincial trade within Canada experienced an 8.5 percent increase between 2016 and 2017, with the total value of merchandise trade between provinces reaching $170 billion in 2017.
What you need to know about Canada’s transportation system
The primary mode of goods transportation in Canada is by truck. Unlike the United States, which boasts a well-developed network of highways connecting various regions, Canada relies heavily on one main transportation artery—the Trans-Canada Highway—that spans from coast to coast. However, individuals residing in remote areas, particularly those to the north, are considerably harder to reach with goods due to limited infrastructure. Despite this, their expectations as consumers may not differ significantly from their urban counterparts, who have easier access to services.
Acknowledging the critical role of transportation infrastructure in Canada’s competitiveness, the federal government introduced the 11-year, $2 billion National Trade Corridors Fund in 2017. The fund aims to enhance the efficiency of the transportation system, thereby improving access to both domestic and international markets. Additionally, it supports initiatives geared towards adapting the transportation network to the challenges posed by climate change and integrating new technologies.
What you need to know about transportation regulations
Federal transportation regulations undergo continuous evolution in the interest of public safety and environmental conservation. As part of these efforts, the Government of Canada has mandated the use of electronic logging devices for all federally regulated truck drivers by June 12, 2021, aiming to prevent driver fatigue and enhance road safety.
This year, the government is set to introduce new regulations for entry-level commercial driver training. Additionally, in 2020, new federal carbon pollution regulations for heavy-duty vehicles will take effect, with increasingly stringent requirements in the coming years.
Despite these federal initiatives, many transportation regulations fall under provincial jurisdiction. The lack of harmonization across provinces has been identified as a source of inefficiency within the trucking sector, hindering seamless operations across the country.
What you need to know about the Canadian truck driver shortage
The trucking industry in Canada employs over 300,000 individuals, making it a significant contributor to the Canadian workforce. Notably, trucking stands as the top employer of Canadian men. However, akin to the situation in the United States, Canada’s freight industry is grappling with a shortage of drivers estimated to reach between 25,000 to 33,000 by 2020, as reported by the Conference Board of Canada.
Potential solutions to address this shortage include recruiting foreign workers to Canada as truck drivers and exploring the utilization of self-driving trucks. While the latter presents a promising prospect, the widespread implementation of self-driving trucks remains a distant reality, despite the conducted tests of semi-autonomous trucks on Canadian roads.
Make Logistics Happen can be your trusted Canadian logistics expert
Canada presents vast and stunning landscapes along with its fair share of transportation hurdles. If you’re in search of a logistics partner well-versed in navigating the intricacies and challenges of transporting goods across Canada and internationally, we’re here to offer our expertise.
Discover how teaming up with us can maximize your chances of success in Canada. Let’s discuss your importing prospects and explore the possibilities together.