Navigating Cross-Border Freight Challenges: U.S. Port Strikes and Canadian Rail Disruptions in 2024

Cross-border shipping between Canada and the United States is the backbone of trade for businesses in both countries. However, recent disruptions such as U.S. port strikes and Canadian rail labor disputes are creating significant challenges for shippers. If you’re moving LTL freight, dry van loads, or flat deck shipments, or managing cross-border customs clearance, staying informed and proactive is key to keeping your supply chain running smoothly.

In this blog, we’ll unpack these issues and provide actionable solutions to mitigate disruptions, ensuring your Canada-U.S. cross-border freight operations remain efficient and compliant.

The Impact of U.S. Port Strikes on Cross-Border Shipping

In recent months, labor strikes at 36 U.S. ports, spanning the East and Gulf Coasts, have caused significant disruptions to freight movement. These strikes have led to delayed shipments, increased congestion, and higher costs for businesses relying on Canada-U.S. shipping routes.

Key challenges for Canadian shippers include:

• Longer Transit Times: Shipments that pass through affected U.S. ports are experiencing significant delays, particularly for LTL freight and dry van shipments.
• Increased Freight Costs: Port congestion has driven up rates for alternative routes, especially for high-demand modes like flat deck trucking.
• Supply Chain Uncertainty: Unpredictable timelines make it challenging to plan deliveries and meet customer expectations.

How to Adapt:

• Reroute Freight Through Alternative Ports: Canadian shippers can leverage Canadian ports like Vancouver or Halifax as alternatives to congested U.S. ports.
• Collaborate with Reliable Carriers: Partner with experienced cross-border freight companies that understand these disruptions and can provide proactive solutions.

Canadian Rail Labor Disputes and Their Effect on Freight Shipping

Labor disputes within Canada’s two largest rail networks have further complicated cross-border shipping. Network shutdowns and potential lockouts have disrupted key supply chain arteries, particularly for industries reliant on rail freight for bulk goods.

These disruptions are especially impactful for shippers moving LTL freight and heavy loads on flat deck trailers, which often rely on rail as part of their transportation strategy.

Strategies to Mitigate Rail Disruptions:

• Shift to Trucking: Leverage dry van or flat deck trucking for time-sensitive shipments to bypass rail-related delays.
• Plan Ahead for Delays: Build extra time into your shipping schedule and communicate proactively with your customers.
• Work with a Customs Clearance Expert: A seamless customs clearance process can help offset delays caused by rail disruptions.

Navigating Cross-Border Customs Clearance Amid Disruptions

Efficient customs clearance is critical in ensuring fluid cross-border shipping, especially during periods of supply chain instability. With evolving trade dynamics and increased scrutiny at the Canada-U.S. border, having the right customs documents and processes in place can make all the difference.

Key Customs Clearance Tips:

1. Ensure Complete and Accurate Documentation: Missing or incorrect paperwork can result in costly delays. Essential documents include:
   • Commercial Invoice
   • Bill of Lading (BOL)
   • Certificates of Origin
2. Stay Informed on Tariff Changes: Regularly review updates to trade agreements like CUSMA/USMCA and adjust your tariff classification accordingly.
3. Partner with Experienced Customs Brokers: A trusted broker can streamline the customs clearance process, reduce errors, and help you navigate the complexities of cross-border regulations.

How Cross-Border Freight Experts Can Help

During these challenging times, working with a specialized freight partner is invaluable. Experienced cross-border transportation companies offer:

• Expertise in Canada-U.S. Trade: From LTL freight to flat deck shipments, they understand the unique challenges of cross-border shipping.
• Proactive Communication: They’ll keep you updated on shipment status and potential delays caused by port or rail disruptions.
• End-to-End Customs Clearance Solutions: By handling all aspects of customs clearance, they ensure compliance and minimize disruptions.

Conclusion

While U.S. port strikes and Canadian rail labor disputes present significant challenges, shippers can navigate these disruptions with the right strategies and partnerships. By rerouting freight, leveraging alternative transportation modes like dry van and flat deck trucking, and prioritizing efficient customs clearance, businesses can maintain smooth operations and meet customer demands.

If you’re looking for a reliable partner to handle your Canada-U.S. cross-border freight and customs clearance needs, contact us today. Our team specializes in LTL shipping, dry van, and flat deck freight, providing tailored solutions to keep your supply chain moving beyond the haul.