Crossing the Border by Truck "More Expensive" Since 9/11: StatsCan

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Canadian Shipper Aug 04, 2015

Since September 11, 2001, it has become more expensive to move goods by truck across the Canada-US border, according to a study released by StatsCan on July 24.

The study, “How Much Thicker Is the Canada–U.S. Border? The Cost of Crossing the Border by Truck in the Pre- and Post 9/11 Eras” is based on the first data produced to estimate the costs associated with trucking goods across the border before and after 9/11. In the wake of 9/11, a new security regime was implemented to regulate the movements of goods across the Canada-US border, raising concerns that the cost of moving goods across the border would rise.

From 1994 to 2000, it cost, on average, 16% more to move goods across the Canada-US border by truck than to move the same goods the same distance domestically. After 2000, the premium paid to cross the border rose steadily to 25% in 2005 and remained at about that level until 2009.

The two main factors in cross-border trucking costs are fixed costs per shipment of moving goods across the border and higher line-haul costs of trucking cargo over longer distances. Delays at the border and other border compliance costs add to the fixed costs per shipment incurred by trucking firms, the study said.

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