Canada Customs Brokerage Market Size (2024 - 2029)

The Canada Customs Brokerage Market is experiencing growth driven by increased regional trade and the rising demand for customs brokers due to complex trading systems. The market's expansion is influenced by the evolving global trade environment, characterized by unpredictability and geopolitical instability. Customs brokers play a crucial role in facilitating trade and assisting exporters with risk management, particularly in navigating new trade agreements and regulatory changes. The competitive landscape of the market is marked by significant players investing in research and development to enhance customs-clearing processes.

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Market Size of Canada Customs Brokerage Industry

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Canada Customs Brokerage Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.00 %
Market Concentration Low

Major Players

Canada Customs Brokerage Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Canada Customs Brokerage Market Analysis

The Canada Customs Brokerage Market is valued at about USD 450 Million in the current year and poised to grow at a CAGR of over 7% during the forecast period. The market is driven by the increase in trade in the region. Furthermore, the market is driven by the increasing demand for custom brokers because of the complexity of the trading systems.

  • Many people identify customs brokers with importing, although their skills and particular knowledge can be beneficial to exporters in today's complicated and frequently unpredictable trade climate. Aside from multiple new trade agreements, there have been the disruptive impacts of the global pandemic and an increasing tendency by the US government to utilise trade agreements aggressively rather than as a tool to encourage international trade. As a result, the global trade environment has shifted from one that was formerly very predictable to one that is becoming increasingly unpredictable. In actuality, a broker's function is to facilitate trade and assist exporters in risk management.
  • The Canada Border Services Agency (CBSA) has also adopted the Canadian Export Reporting System (CERS), a web-based, self-service site, and no longer accepts paper-based export declarations. With this mechanism in place, the Canadian government may easily audit export declarations. If exporters do not meet all of the rules, they are more likely to face financial penalties. A customs broker can help exporters ensure they are doing everything correctly to avoid these penalties. A list of brokers and specialists is available from the Canadian Association of Importers and Exporters (IE Canada). The Canadian Society of Customs Brokers (CSCB) maintains the Importers Network, which also assists to help exporters and importers choose what type of broker or specialist they may want. Another organisation that provides a list of brokers and specialists is the Canadian International Freight Forwarders Association (CIFFA). Not all brokers are created equal. Some do a little bit of everything, while others specialise in one area, such as goods.
  • The Covid-19 epidemic continues to have an impact on global trade flows and economic growth in 2022 and is expected to continue into 2023. The third year of Covid-19, along with the Ukraine/Russia conflict, has increased geopolitical instability, potentially impeding global economic recovery. The World Trade Organisation (WTO) predicts a 3% increase in merchandise trade volume in 2022, down from a previous prediction of 4.7% and 3.4% in 2023. Commodity prices have risen as a result of the Russia/Ukraine situation, which has had the most immediate economic impact. Russia and Ukraine are significant suppliers of critical items such as food, electricity, and fertilisers. This has had a global impact, particularly in low-income nations where food makes up a major portion of household income. In Canada, the top 3 exports are crude petroleum, cars and refined petroleum with the top 3 imports being cars; car parts and accessories; and trucks.
  • The United States' decision to reduce Section 301 tariffs (Trade Act of 1974 (U.S.)) on over 100 Chinese-made medical items may have an impact on Canadian enterprises that sell competing goods to the United States. The customs brokerage industry is highly competitive, with many brokers operating, particularly near borders. The major players, however, control a sizable piece of the market. Companies that offer customs brokerage services are investing in R&D to acquire a market advantage. R&D spending is likely to rise during the predicted period as demand develops for streamlined and more efficient customs-clearing systems with quick turnaround times.

Canada Customs Brokerage Industry Segmentation

Customs Brokerage firms facilitate the shipment and delivery of goods across geographical borders for individuals and organizations. A customs brokerage firm is responsible for knowing all the rules and regulations regarding the transfer of goods entering or leaving the borders and ensuring that they are followed to streamline the process of shipping goods as much as possible for the individual or organization. A complete background analysis of the Canada Customs Brokerage Market, including the assessment of the economy and contribution of sectors in the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics and geographical trends, and COVID-19 impact, is covered in the report.

The Canada Customs Brokerage Market is segmented By Mode of Transport (Sea, Air, and Cross-border Land Transport). The report offers market size and forecasts in values (USD billion) for all the above segments.

By Mode Of Transport
Sea
Air
Cross-Border Land Transport
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Canada Customs Brokerage Market Size Summary

The Canada Customs Brokerage Market is experiencing significant growth, driven by an increase in regional trade and the rising complexity of trading systems. This complexity has heightened the demand for customs brokers, who play a crucial role in facilitating trade and managing risks for exporters. The market is influenced by various factors, including new trade agreements, the impacts of the global pandemic, and geopolitical tensions such as the Ukraine/Russia conflict. These elements have contributed to an unpredictable global trade environment, necessitating the expertise of customs brokers. The Canadian government has also implemented systems like the Canadian Export Reporting System (CERS) to streamline export processes and ensure compliance, further underscoring the importance of customs brokerage services.

The market is characterized by high competition, with numerous brokers operating, particularly near borders. Major players such as United Parcel Service, FedEx Corporation, and DHL Group dominate the market, while companies invest in research and development to enhance customs-clearing systems. Despite challenges like inflation and potential recession talks, cross-border freight activity remains robust, with significant trade volumes between Canada, the United States, and Mexico. Technological advancements, including artificial intelligence and video intelligence, are improving operational efficiencies and safety in logistics. The market's fragmented nature and ongoing developments, such as new service branches and tariff adjustments, highlight the dynamic landscape of customs brokerage in Canada.

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Canada Customs Brokerage Market Size - Table of Contents

  1. 1. MARKET INSIGHTS DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Overview

    3. 1.3 Market Dynamics

      1. 1.3.1 Drivers

      2. 1.3.2 Restraints

      3. 1.3.3 Opportunities

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Porters Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Government Initiatives and Regulations

    7. 1.7 Impact of COVID-19 on the Market

    8. 1.8 Insights on Imports and Custom Brokerage Services

    9. 1.9 Brief on Customs Brokerage as a Freight Forwarding Function

    10. 1.10 Overview of Customs Pricing

    11. 1.11 Insights on Customs Brokerage Services by End-user Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Mode Of Transport

      1. 2.1.1 Sea

      2. 2.1.2 Air

      3. 2.1.3 Cross-Border Land Transport

  3. 3. MARKET OVERVIEW FOR SOLUTIONS ALLIED TO CUSTOMS BROKERAGE SERVICE

    1. 3.1 Software

    2. 3.2 Consulting

    3. 3.3 Contract Logistics-based Customs Brokerage

    4. 3.4 Other Related Value-added Services

Canada Customs Brokerage Market Size FAQs

The Canada Customs Brokerage Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

Livingston, United Parcel Services Inc, FedEx Corporation, A.N Deringer and DHL Group are the major companies operating in the Canada Customs Brokerage Market.

Canada Customs Brokerage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)