Statistics Canada released a report in July that shows that since Sept. 11, 2001, the cost of trucking goods across the border between the U.S. and Canada has increased from .3 percent of the value of goods shipped to .6 percent.
The study pointed to the obvious, the implementation of new security measures designed to prevent illegal shipments at border crossing points.
“From 1994 to 2000, it cost, on average, 16 percent more to move goods across the Canada-U.S. border by truck than to move the same goods the same distance domestically,” the Canadian report states. “After 2000, the premium paid to cross the border rose steadily to 25 percent in 2005 and remained at about that level until 2009.”
Statistics Canada said the study resulted from data collected by Statistic Canada’s Trucking Commodity origin and Destination Survey.
“Costs measured by this study are only part of the total cost of shipping goods across the border,” Statistics Canada said in a summary of the study posted online. “Institutional costs borne directly by exporting firms for matters such as customs administration have been estimated to be as great or greater than the costs passed on to them by freight carriers.”
Canada’s plan to build the Gordie Howe International Bridge is aimed in part at adding faster, cheaper shipping alternatives for such exports.
The billion-dollar project calls for a six-lane bridge between Windsor and Detroit complete with a $250 millionU.S. Customs plaza that Canada has agreed to fund. The bridge is scheduled to open by 2020.
According to the CBC, the U.S. and Canada have the largest bilateral trading relationship in the world – measuring at $870 billion in 2014. An estimated $2.4 billion in goods and services cross the U.S.-Canada border every day.
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