During the coronavirus pandemic, the US and Canada restricted non-essential travel across their common borders but allowed the movement of freight in trucks. Preserving the movement of trucks was economically sound otherwise, critical supplies of food and medicines would be interrupted as well as the operations of large manufacturing plants that employ thousands of people.
On an average day, about 30,000 trucks carrying more than $1 billion in trade pass through the US and Canadian borders. If truck movements were banned, the economic damages will be both direct and indirect. Direct in the sense that critical goods will be cut-off. Indirect damage can be expected from the breakdown of supply chains that straddle the borders. Factories will stop production and economic activities will cease.
Pharmaceuticals are the major export of Ontario to the US. Meanwhile, thousands of trucks are required to move agri-food products that include live animals and processed food in both directions. Production of cars and SUVs rely on parts coming from hundreds of different factories and several tiers of suppliers. Almost all of the factory-to-factory movements require trucks that cross the US-Canada borders.
The movement of trucks across the borders are interconnected to the movement of people. Aside from truck drivers, many people are involved in maintenance, repairs, training, marketing, and other tasks that require crossing the borders to support binational production systems. Including these people in the “essential” category will ensure the smooth functioning of cross-border supply chains.
In some industries, there are arguments that food production must shift to separate domestic supply chains. However, in industries where scale is very essential like automotive, aerospace, defence, and industrial machinery, a consolidation will systematically work against Canada. In these industries, supply chains cannot be duplicated for each country; it will be concentrated in the country with the largest market which is the United States.
Reliable transport for cross-border trade in North America is available through Titan Transline, a 3PL logistics, and trucking provider. A dedicated and professional team is prepared to handle even the most complex transportation requests. All clients can expect personalized, customized, and caring services for their shipments.