Why Trucking Rates in Canada are the lowest

The Canadian trucking industry is a vast industry that comprises of over 10,000 trucking businesses all over Canada (coast to coast) which operate all over the Canadian mainland and the 48 states. As reported by the Canadian trucking alliance, there are more than the 10,000 estimated trucking companies in Canada; while a minority portion actually falls under the for-hire category (the rest being privately owned transportation wings of large industrial and agri companies). The for hire trucking industry alone exceeds 30 Billion US Dollars in revenue each year and employs nearly half a million workers in Canada and the US, which provides a vague estimate as to the size and economic importance of this industry to North American commerce.


Competition lowers trucking rates: Freight quotes are as low as they have ever been

The Canadian trucking industry is backed up with over 900,000 miles of road networked across Canada and close to 40,000 km of highway. This industry is divided between cross country and localized transportation and provides freight hauling services for any type of industry, carrying any type of freight including raw material or heavy machinery. This industry is based on free competition as it is economically de-regulated and provides low barriers to entry (in terms of start-up capital, registration and taxes etc); this makes competition for business difficult amongst trucking companies and freight forwarding businesses.

In recent years, due to the recession, there has been a decline in business activity, especially cross border trade with the US and shipments carried inland from international marine ports. This is coupled with rising fuel costs which force trucking companies to attempt to compensate through economics of scale (carrying larger shipments more often). The overall situation therefore creates a higher level of competition for business both amongst Canadian carriers as well as with US based carriers, putting significant downward pressure on trucking rates overall, with a price wars scenario now evident. Freight forwarders, shippers and producers ultimately benefit from this decline in rates, being able to transport their goods for much lower rates using a wide variety of carriers throughout the region.

Find a Canadian trucking-freight forwarding agent or carrier which provides complete logistic support, and provides you with the lowest possible rates against the highest possible quality of service in accordance with your transportation needs (goods specific needs, volume and distance).


Types of for-hire trucking equipment available in Canada

The industry is divided between cross border and heavy load carriers and small localized carriers, all of which are essential to utilize the transportation network. The following are the trucks and trailers commonly used.

Flatbed transport and specialized wide-load transport: usually up to 48,000 LB. 20'-53' Trailers Available.

Dry Van and box trailer type transport (refrigerated (Reefers) / heated units available): usually for goods up to 45,000 LB. 48' & 53' Trailers normally Available.

'Hot Shots': Loads up to 25,000 LB. 40' or less; for LTL.

Step Decks: For loads up to 50,000 LB. 48' & 53' Trailers.

Double Drops, RNG's and Extendable trailers available as well.


Reference:

Wikipedia

www[dot]fastfreightquotes[dot]com/freight-services/freightequipmenttypes.php

www[dot]cantruck[dot]ca/iMISpublic/Submissions3/AM/ContentManagerNet/ContentDisplay.aspx?Section=Submissions3&;NoTemplate=1&ContentID=3610