Why More Businesses Are Rerouting Freight Through Canada

Why Canada is becoming a preferred entry point for goods — and what businesses should know

Global trade patterns are shifting. In recent months, an increasing number of businesses have begun routing goods through Canadian ports — not just as a contingency plan, but as part of a long-term strategy to improve supply chain resilience and reach.

A recent article from The Globe and Mail highlights this growing trend, driven by a combination of operational challenges in the U.S. and competitive advantages in Canada.

What’s Driving the Shift?

Several key factors are influencing this redirection:

  • Congestion at U.S. ports: Ongoing delays at major American ports, particularly on the West Coast, have pushed shippers to look for faster, more predictable alternatives.

  • Canadian port performance: Ports like Prince Rupert and Halifax are becoming attractive due to their capacity, inland connectivity, and strategic location.

  • Cross-border accessibility: Canada offers efficient road and rail links to major U.S. markets, allowing companies to bypass bottlenecks and access distribution networks more directly.

  • Resilience and diversification: Companies are rethinking logistics strategies to include multiple entry points into North America, reducing dependency on any one route.

Implications for Supply Chains

The shift toward Canadian entry points brings both opportunities and operational considerations:

  • Infrastructure strain: As volumes increase, Canadian ports, rail networks, and warehousing capacity will be under greater pressure.

Explore our warehousing solutions in key regions across Canada.

  • Cross-border planning: For U.S.-bound freight entering via Canada, companies need to account for customs coordination and compliance with evolving regulations.

See how we support cross-border freight into the U.S.

  • Retail delivery expectations: Logistics teams must still meet strict delivery windows, particularly when servicing major retailers or time-sensitive markets.

What Companies Should Be Thinking About

As this trend gains momentum, supply chain and logistics professionals may want to evaluate:

  • Whether their current networks are optimized for Canadian routing

  • How flexible their warehousing and transportation capacity is

  • If their partners are experienced in handling cross-border flows and regulatory complexity

  • Opportunities to build resilience by diversifying port and distribution points

This isn’t just a temporary workaround. For many, Canada is becoming a permanent fixture in North American logistics strategy.


 To read more, view the original Globe and Mail article here.

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Pourquoi de plus en plus d’entreprises réacheminent leur fret via le Canada

Pourquoi le Canada devient une porte d’entrée privilégiée pour les marchandises — et ce que les entreprises doivent savoir

Les tendances du commerce mondial évoluent. Depuis quelques mois, de plus en plus d’entreprises choisissent de faire transiter leurs marchandises par les ports canadiens — non seulement comme solution temporaire, mais dans le cadre d’une stratégie à long terme pour renforcer la résilience et la portée de leur chaîne d’approvisionnement.

Un article récent du Globe and Mail met en lumière cette tendance croissante, motivée par un mélange de défis opérationnels aux États-Unis et d’avantages concurrentiels offerts par le Canada.

Qu’est-ce qui explique ce changement?

Plusieurs facteurs clés influencent cette redirection :

  • Congestion aux ports américains : Les retards persistants dans les grands ports américains, en particulier sur la côte ouest, incitent les expéditeurs à chercher des solutions plus rapides et plus fiables.

  • Performance des ports canadiens : Des ports comme Prince Rupert et Halifax deviennent des choix attrayants grâce à leur capacité, leur connectivité intérieure et leur emplacement stratégique.

  • Accès transfrontalier : Le Canada offre des connexions efficaces par route et par rail vers les grands marchés américains, permettant aux entreprises d’éviter les goulots d’étranglement et d’accéder plus facilement aux réseaux de distribution.

  • Résilience et diversification : Les entreprises revoient leurs stratégies logistiques afin d’inclure plusieurs points d’entrée en Amérique du Nord, réduisant ainsi leur dépendance envers un seul itinéraire.

Conséquences pour les chaînes d’approvisionnement

Le passage par des points d’entrée canadiens présente à la fois des opportunités et des considérations opérationnelles :

  • Pression sur les infrastructures : Avec l’augmentation des volumes, les ports canadiens, les réseaux ferroviaires et la capacité d’entreposage seront davantage sollicités.

Découvrez nos solutions d’entreposage dans les principales régions du Canada.

  • Planification transfrontalière : Pour les marchandises à destination des États-Unis qui entrent via le Canada, il est essentiel de prévoir la coordination douanière et de se conformer à la réglementation en constante évolution.

Voyez comment nous facilitons le transport transfrontalier vers les États-Unis

  • Attentes en matière de livraisons au détail : Les équipes logistiques doivent toujours respecter des délais de livraison serrés, surtout lorsqu’il s’agit de grands détaillants ou de marchés sensibles au facteur temps.

Ce que les entreprises devraient considérer

Alors que cette tendance s’accélère, les professionnels de la logistique et de la chaîne d’approvisionnement devraient évaluer :

    • Si leurs réseaux actuels sont optimisés pour un passage par le Canada

    • La flexibilité de leur capacité d’entreposage et de transport

    • Si leurs partenaires ont l’expérience du transport transfrontalier et de la conformité réglementaire

    • Les occasions de renforcer leur résilience en diversifiant les ports et les points de distribution

 

Ce n’est pas qu’une solution de secours temporaire. Pour plusieurs, le Canada devient un élément clé de leur stratégie logistique nord-américaine à long terme.


Pour en savoir plus, consultez l’article original du Globe and Mail ici.

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Top 10 Questions About Canadian Transport Companies

Canada’s vast geography presents unique challenges for businesses moving goods across the country and across borders. If you’re wondering how Canadian transport companies operate, here are the answers to 10 of the most common questions, with insights from XTL Transport.


1. Is It Expensive to Ship to Canada?

Shipping costs to Canada depend on several factors, including:

Shipment origin & destination – Distance and trade imbalances impact pricing.
Mode of transportation – Air, rail, truck, or sea each have different cost structures.
Fuel prices & customs fees – Taxes and duties vary by product type.
Seasonal trends – Peak seasons (e.g., produce season) can increase rates.

Pricing in the transportation industry is more complex than just cost per mile. While many shippers calculate transportation expenses based on mileage, carrier rates are largely driven by market dynamics rather than the actual cost of covering that distance. A key example of this is triangular freight routes, where instead of simple round trips, carriers consider multi-leg routes for efficiency.

For instance, a route like Toronto–Montreal–New York–Toronto allows for better load balancing. In some cases, market rates on one leg of the journey may be lower than the actual cost, but another leg may compensate by being higher than cost. As long as the overall route remains profitable, it makes economic sense for the carrier. This approach highlights the intricacies of freight pricing and how strategic route planning optimizes both costs and efficiency.


2. How Many Trucking Companies Are There in Canada?

There are over 300,000 registered trucking companies in Canada, ranging from small independent operators to large fleets. Trucking moves over 90% of consumer goods and manufactured products. XTL Transport ranks 24th on Today’s Trucking’s list of Canada’s Top 100 for-hire carriers.


3. What Is the Average Salary of a Truck Driver in Canada?

Truck drivers earn between $55,000 and $75,000 per year, depending on experience, location, and haul type. Long-haul and specialized freight drivers often earn more. XTL Transport has been recognized as one of Trucking HR Canada’s Top Fleet Employers, valuing its drivers with competitive pay and benefits.


4. How Long Does It Take to Ship from Vancouver to Toronto?

Transit time between Vancouver and Toronto depends on the shipping method:

  • Truckload (Single Driver): A driver can typically cover 500 miles per day, assuming an average speed of 50 miles per hour over 10 hours of driving. With a distance of approximately 2,700 miles, a single-driver truck shipment would take about 5-6 days, including pickup and delivery.
  • Truckload (Team Drivers): A team of drivers can alternate shifts, allowing for continuous movement and covering up to 1,000 miles per day, reducing transit time to about 3 days.
  • LTL Shipments: Less-than-truckload shipments often involve multiple stops and freight consolidation, which can extend transit time to 6-7 days.
  • Rail Freight: Typically takes 6-10 days, depending on scheduling, terminal handling times, and intermodal connections.
  • Air Freight: The fastest but most expensive option, with transit times of 1-2 days.

Tip: Reduce transit delays and mitigate risks by partnering with a provider that offers both intermodal and truckload services. This allows for greater flexibility in routing and cost optimization.


5. Who Regulates Trucking Companies in Canada?

The trucking industry in Canada is regulated by both federal and provincial authorities. Transport Canada oversees national regulations, while provincial bodies handle regional compliance. XTL Transport adheres to all regulatory standards, ensuring safety and reliability in our operations.


6. How Do Canadian Transport Companies Handle Cross-Border Shipping?

Cross-border shipping requires compliance with Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP). Many carriers, including XTL Transport, are C-TPAT certified, ensuring faster customs clearance.

Read: Navigating Transborder Trucking


7. What Are the Top Transport Hubs in Canada

Key logistics hubs include:
Toronto, Ontario – Largest freight hub
Montreal, Quebec – Key for rail and ocean freight
Vancouver, British Columbia – Major west coast port
Calgary, Alberta – Central for Western Canada logistics


8. What Insurance Coverage Do Canadian Transport Companies Offer?

Most carriers provide basic cargo insurance, typically at $4.41 per kg ($2.00 per lb). However, liability limits vary by province and additional coverage may be required for high-value shipments.

Country Standard Carrier Liability
Canada $4.41 per kg ($2.00 per lb)
U.S. $2.00 per lb

For more details, visit:

Transport Canada – Cargo Liability Regulations 

FMCSA Cargo Liability Guidelines


9. How Do Canadian Transport Companies Handle Hazardous Materials?

HAZMAT shipments must comply with Transport Canada and FMCSA (U.S.) regulations. XTL ensures proper classification, labeling, and safety training for hazardous goods.

For more details, visit:

Transport Canada’s Dangerous Goods Regulations

FMCSA Hazardous Materials Regulations


10. What Truck Types and Capacities Are Common in Canada?

Dry Vans (53ft) – Up to 26 standard pallets
Refrigerated Trailers – Temperature-controlled freight
Flatbeds – For oversized cargo

Learn more: How Much Freight Fits on a Truck?


Conclusion

Understanding Canada’s transportation industry is crucial for businesses and individuals alike. XTL Transport’s experience makes us a trusted partner for all your logistics needs. For more information, contact us today.