Why U.S. Freight Is So Different – Top 10 Reasons

As a transportation company in Canada we deal with customers in both the United States and Canada. The majority of U.S. shippers likely ship 90% or more within the U.S. and less than 10% to Canada. Many shippers in the U.S. may only ship to Canada once or twice a year. The typical question we get from many U.S. shippers who are new to shipping to Canada is, “Why is it so different?” This article is going to kick off a series of articles over the next few months that will explain some of the key differences between how freight moves in Canada, to Canada, and how that is different from how freight typically moves within the United States.

Some of the questions we get about shipping to Canada:

• Typically, U.S. shippers are used to paying less than $100 to ship a small pallet for an interstate shipment. Why does it cost 4x to 5x more to ship to Canada?
• On the other end of the spectrum, when a U.S. shipper ships over 10,000 lbs they typically ship it as a truckload because it’s cheaper. Why when they ship to Canada, is it that 12,000 lbs doesn’t cost that much more than 10,000 lbs?
• Why does Hazmat transport cost an extra $25 dollars per shipment in the U.S. and costs 20%-30% of the shipment cost when shipping to Canada?
• Why did it cost $500-$600 to ship a truckload from Chicago to Toronto 5 years ago and now it costs $1800 or more?
• What is this currency surcharge all about and why do we need it?
• Why can’t I get a truck from Chicago to Alberta when I need one? What’s the problem?
• I’ve got a shipment from Chicago to Detroit and another to Toronto. Why can’t the driver pick up in Chicago, Deliver in Detroit and then continue on to Toronto? It’s on the way!
• Why can’t I just get a per hundred weight price that covers all of Ontario? I can get a per hundred weight price that covers all of New York State?
• Why do I need heat? It’s 50 degrees here in Florida? My current LTL freight carrier doesn’t use heated equipment.
• What is this border crossing surcharge and why do you charge it?
• Why can’t I just get a bulk carrier to pick up in the next hour, on demand?

So, here are the top ten reasons. We’ll cover each one in its own article in the series.

1. Geography
2. Immigration Laws (Cabotage)
3. The Canadian Dollar vs. US Dollar
4. Population Distribution
5. The Decline of Canadian Manufacturing
6. The Canadian Oil Economy
7. The Hardened Border between Canada and the U.S.
8. Direct Service vs. Hub and Spoke
9. The Effect of Overseas Manufacturing
10. The Logistics of the Foreign Driver and the Backhaul.

More articles will follow covering each one of the top 10 reasons in more detail. If you can’t wait and have questions about shipping to Canada, please call one of our logistics experts at DSN Chemical Transportation. They are standing by to answer any of your questions.