Freight Shipping from the USA to Canada and from Canada to the USA

Freight Shipping between the US and Canada: A Complete Guide

The USA and Canada share not only a border but also close trade relations. In 2023 alone, goods and services worth $2.7 billion crossed the North American border every day. Such a volume of trade demands reliable and well-thought-out logistics.

Proper organization of transportation is the key to stable business, especially for companies that rely on the accuracy and speed of international deliveries. Poor planning can lead to missed deadlines, customs issues, and increased costs.

Below, we will take a detailed look at all aspects of freight shipping from the USA to Canada and from Canada to the USA. You will learn about selecting optimal transport routes, the specifics of different delivery methods, and how to efficiently handle customs requirements for smooth and secure transportation.

Truckload Shipping Between the USA and Canada

Trucks are one of the most popular vehicles for freight transportation between Canada and the USA. They provide high flexibility and speed, which is especially important for urgent shipments and deliveries of goods requiring special storage conditions.
Trucks can transport a wide range of products, from consumer goods to industrial equipment. They are particularly efficient for delivering goods over short distances or to remote areas where other modes of transport may not be available.
The freight shipping from Canada to the US or vice versa can be carried out either in a dedicated truck (FTL) or as part of consolidated shipments (LTL).

When to choose truckload transport for shipping between the USA and Canada:
1. You need to transport cargo weighing up to 20–25 tons.
2. You require direct delivery to a warehouse or end customer in the USA or Canada.
3. You are shipping over short to medium distances.

FTL freight shipments from the USA to Canada and back

● FTL shipments are used when the volume of goods is sufficient to fill more than half or the entire trailer of a 53-foot truck. Essentially, you rent the entire vehicle and load it exclusively with your goods. The truck follows a direct route from the point of origin to the destination, significantly reducing delivery time.
However, this option is cost-effective only for transporting large volumes of goods. Even with a fully loaded smaller trailer, the cost per unit of goods can impact your budget.

LTL shipping from Canada to the US and back

● With this type of transportation, your cargo will occupy only part of the truck’s space, with the remaining capacity shared among other shippers. This is a cost-effective solution for sending small shipments (ranging from 150 to 15,000 pounds). You only pay for the space your cargo uses in the truck.
However, keep in mind that the truck will make several stops to load and unload other goods. LTL shipping from the USA to Canada or vice versa may take longer compared to FTL. Additionally, frequent handling during loading and unloading increases the potential risk of damage to your goods.

There are two options for sea freight between the US and Canada – FTL and LTL.

FCL (Full container load)

● The entire container is rented by a single sender. It ensures quick packing, loading, and shipment of the goods. The container remains sealed until it reaches its final destination, and the route excludes additional stops for unloading other goods. This minimizes the risk of cargo damage and delays during transport.

✔ For large shipments
✔ 20-foot and 40-foot containers

LCL (Less than container load)

● In an LCL shipment, the goods in a container belong to different parties. Therefore, the shipping cost is divided among all senders. However, LCL shipping from Canada to the US or vice versa may take longer due to the need for handling and unloading at intermediate ports.

✔ For small shipments
✔ Up to 15 cubic meters

The choice between FCL and LCL depends on the volume and type of goods, budget, and urgency of delivery. FCL is the optimal option if you have enough goods to fill an entire container and need to quickly load and ship the cargo. If the shipment is small, it can be consolidated with other goods, and you can afford to wait a bit longer, LCL delivery is more cost-effective.

Want to ship your cargo by sea? Contact the experts at Fulfillment-Box. They will help you choose the best option based on the specifics of your cargo, budget, route, and other important factors.

Air Freight between the USA and Canada

Air transport is primarily used for transporting valuable or time-sensitive goods. Despite being the most expensive compared to other modes of transportation, it has its advantages—high delivery speed and minimal risk of damage to the cargo. In the sky, there are no bad road conditions, traffic jams, or frequent accidents. However, there is still the risk of flight delays due to adverse weather conditions.

The cost of air freight between the USA and Canada

The cost of air freight is significantly higher compared to other modes of transportation. The final price is determined by the weight and volume of the cargo, the distance, the urgency of delivery, and the chosen flight.

To find out the air freight rates between the USA and Canada, contact the managers at Fulfillment-Box.

When to choose express delivery:

1) Your goods are perishable;
2) You need to receive the shipment as quickly as possible;
3) You need to transport a small-volume shipment.

D2D, DDP/DDU Shipping

When choosing the optimal method of international shipping, it is important to consider not only the route and type of transport but also the level of responsibility for customs procedures and the associated costs. Depending on these factors, several delivery options are available.

Door to door, Port to port, Door to port etc.

D2D delivery is one of the most optimal freight shipping methods between the US and Canada. The cargo is transported directly from the sender to the recipient. The entire process — from pickup to handover to the final client — is managed by the transportation company. The shipper’s involvement in intermediate stages is completely eliminated. This is a highly convenient option for the sender, freeing them from unnecessary hassle and concerns.

For organizing D2D delivery, we can utilize various modes of transportation—sea, rail, road, and air. Multimodal solutions make it possible to deliver goods even to the most remote areas of the USA and Canada.

If your warehouse is located in a region with limited transport accessibility, we will deliver the cargo to the nearest point using rail, air, or sea transport, and then complete the delivery with road transportation. At each stage of the route, the most efficient mode of transport is employed. This helps optimize costs and expedite the receipt of the cargo.

In addition to full-cycle logistics, there are other flexible delivery options: Port-to-Port, Port-to-Door, and Door-to-Port for sea shipping, as well as Airport-to-Airport, Airport-to-Door, and Door-to-Airport for air freight. Similar options are also available for rail transportation. These alternatives allow logistics to be tailored to specific needs, shipping conditions, and budget requirements.

DDP and DDU shipping

International logistics involves certain costs related to customs formalities. Responsibility for these costs can be assumed either by the shipper (DDP) or the recipient (DDU).

● DDP (Delivery Duty Paid): The shipper assumes all costs, including customs duties, taxes, and fees in the destination country. This is the most convenient option for the recipient, as they do not have to handle documentation or pay for customs procedures — they simply receive the goods at the agreed destination.

● DDU (Delivery Duty Unpaid) / DAP (Delivered at Place): The sender is responsible for delivering the goods, but customs duties and taxes in the recipient’s country are paid by the client. DDU can be more cost-effective for the sender but requires the recipient to invest additional time and expenses in handling customs clearance.

A clear understanding of the delivery terms enables the parties to establish the most favorable terms of cooperation and avoid unexpected financial expenses.

The Customs Clearance Process for Imports Into the USA and Canada

When organizing freight transportation between the US and Canada, it is important to consider customs formalities. Both countries have their own rules and regulations that must be strictly adhered to in order to prevent delays and fines.

For example, all goods crossing the border must be declared to the customs authorities. Under the agreement between Canada, the USA, and Mexico (CUSMA), which came into effect on July 1, 2020, goods originating from one of the signatory countries may be exempt from duties or subject to a reduced rate.

It is important to familiarize yourself with the current customs regulations in advance and prepare all the necessary documentation beforehand.

Customs Duties for Freight Shipping from the USA to Canada

Customs duties on importing goods into Canada are calculated based on the value of the goods, including all costs for transportation and insurance. Duty rates can vary depending on the category of goods and their country of origin. The amount of duty is determined according to the tariffs set by the Canada Border Services Agency.

The importer must pay the Goods and Services Tax (GST) and, in some provinces, the Provincial Sales Tax (PST). In some cases, excise duties may also be applied.

Canada’s GST rate is 5% federal tax.

GST is not charged on:

● Goods valued at up to 60 Canadian dollars, considered gifts from family/friends
● All goods valued at less than 20 Canadian dollars

Customs Duties for Freight Shipping from Canada to the USA

In the United States, customs fees are established and controlled by U.S. Customs and Border Protection (CBP). These fees can vary depending on the type and value of the goods. Any applicable duties and taxes must be paid before the cargo is released into the U.S.

The minimum threshold for import tax in the USA is $800. All goods valued below this amount are not subject to customs duties.

To transport your goods across the U.S. and Canadian borders without delays or penalties:

● Correctly classify goods using the HS code system
● Review the list of restricted and prohibited items for import
● Label your goods in accordance with U.S. and Canadian regulations

What Is the Shipping Time for Freight Between the US and Canada?

The delivery time to the destination in the USA or Canada depends on many factors. The further the cargo needs to be transported, the longer it will take to arrive. Hazardous or specialized goods may require additional inspections. During peak demand periods, delivery times can increase due to high volumes at transport companies. Depending on the shipping conditions, delivery times can vary:

● Road transport: on average, it takes 3 to 7 days. Transit time may increase due to road congestion, border control, and weather conditions.

● Rail transport: can take 7 to 10 days, depending on the route and the congestion of the railway networks.

● Sea transport: generally longer in duration. On average, delivery takes 11 to 37 days.

● Air delivery: The fastest, but also the most expensive option. For urgent shipments, it usually takes no more than 2 days. Standard air delivery takes 1-3 days. Delivery times may vary depending on flight schedules, weather conditions, and the speed of customs clearance.

For more accurate delivery time predictions for your cargo, please contact our specialists. They will provide detailed information based on your priorities.