Market Trends of Canada Customs Brokerage Industry
Increasing International Trade Driving the Market
- Canada's merchandise exports fell by 1.2% in December 2022, owing primarily to weaker exports of petroleum items. Meanwhile, imports fell 1.3%, owing primarily to fewer consumer goods imports. As a result, Canada's global merchandise trade imbalance fell from USD 219 million in November to USD 160 million in December. These tight trade balances are within the normal range for monthly revisions to imports and exports. Total exports declined 1.2% in December 2022 to USD 63.0 billion, the lowest level since February 2022. Declines were noted in 7 of the 11 product categories, with energy exports leading the way. Exports excluding energy goods, on the other hand, increased by 0.8%. Total exports increased in real (or volume) terms as well, rising 0.9% in December 2022.
- Imports from nations other than the United States fell 3.8% in December 2022, the second monthly reduction in a row. Imports from Switzerland (pharmaceutical products), Mexico (various products), and the Netherlands (motor petrol) were the driving forces behind the declines. In December, exports to nations other than the United States fell 4.5%. Exports to China (oilseeds and canola) and the United Kingdom (gold) fell the most. Canada's trade deficit with non-US countries fell from USD 7.3 billion in November to USD 7.1 billion in December. Exports to the United States fell 0.1% in December, while imports increased 0.2%. As a result, the merchandise trade surplus with the United States shrank for the seventh consecutive month, falling from USD 7.1 billion in November to USD 7.0 billion in December 2022.
Understand The Key Trends Shaping This Market
Download PDF
Increasing Cross-Border Road Freight Driving the Market
- Although there is talk of a future recession, and inflation has reached levels not seen since 1983, the boom in cross-border freight continues. According to the US Bureau of Transportation Statistics, trucks moved USD 35.6 billion in freight in both directions across the Canada-US border in April. In April 2022, another USD 44 billion was transported by truck across the US-Mexico border. Ontario border crossings with Detroit and Port Huron, Michigan, accounted for USD 10 billion and USD 6.2 billion, respectively, of the total. Mexico's Laredo, Texas, crossing remained the busiest land port overall, with USD 19.6 billion in truck freight.
- Computers and parts (USD 14.9 billion), electrical machinery (USD 11.6 billion), and automobiles and parts (USD 10.8 billion) were the top three items transported by truck over Canada, the United States, and Mexico's borders. When trucks, trains, aircraft, ships, and pipelines are included, total freight transit between Canada and the United States was USD 69.1 billion, a 31.2% increase over April 2021. Oil and gas accounted for 99% of items moved by pipelines, with the value of that oil increasing by 64.9% over the same month in 2021. According to data from the Public Health Agency of Canada, customs inspectors at the Canada-US border processed 461,150 truck drivers in April 2022, up from 453,789 in April 2021.
- Video intelligence technologies are assisting in the improvement of driving practises while also increasing accountability. Artificial intelligence is being utilised to process video footage in real time and trigger event recordings. High-resolution video documentation can give a clear source of truth in the event of an accident or incident, reducing litigation expenses and difficulties. AI and machine learning are being used to speed up data retrieval, saving fleets from having to examine hours of film. While Canada's provinces catch up on MELT, the driving public and fleet owners can take comfort in knowing that technology is helping to make driving easier, more straightforward, and safer than ever before.
