THE prospect of increased US-Canada trade and opportunities for growth in the us are fueling transportation acquisitions and expanded services across the northern border, reports New York's Journal of Commerce.
Canada Cartage and Kuehne+Nagel Group last week announced acquisitions that strengthen their cross-border business.
Canada Cartage purchased Montreal-based GTI Group, which owns several US trucking and logistics companies, while Kuehne+Nagel acquired Ontario-based customs brokerage and logistics provider Farrow.
Roadrunner, a large US-based less-than-truckload (LTL) carrier, said it will provide a cross-border service in December.
The expansion of the three companies, all representing different modes across the US-Canadian border, underscores the depth of the relationship between the two economies.
'Canada is a massive importer of just about anything, and the industrial infrastructure of Canada and the US is very close-knit,' said Roadrunner CEO Chris Jamroz.
Roadrunner will start with service to Ontario and Quebec and then expand to Vancouver, he said Mr Jamroz. 'Eventually we'll develop an internal business in Canada,' he said. 'As a Canadian, it feels like we're going home.'
The closure of US LTL trucking company Yellow and its Canadian subsidiary YRC Reimer in August put a major dent in cross-border LTL traffic from the US to Canada, Mr Jamroz said.
But Justin Maze, vice president of carrier management for digital transportation platform Transfix, said cross-border opportunities are 'becoming more prominent in the LTL sector lately.'
'The acquisitions are likely the result of the growth in nearshoring we are witnessing in our neighbours to the north and south,' Mr Maze said.
Right now, the cross-border freight market is muted, as are most freight markets north of the US-Mexico border. The number of trucks entering the US from Canada was essentially flat in the first nine months of 2023, according to data from the US Bureau of Transportation Statistics (BTS).
But the value of goods hauled by trucks, in both directions, has been rising, partly because of inflation. In September, that value was up 4.6 per cent year over year to US$36.6 billion, according to BTS data. That followed a 6.7 per cent year-over-year increase in August and a 5.4 per cent gain in July.
By acquiring GTI, Canada Cartage gets a broad footprint in the US market. GTI owns Houston-based drayage provider Jetco, Foxconn Logistics in Franklin, Tenn, and GTI USA in Des Moines, Iowa.
'We have been looking for an opportunity to enter the US market for several years but have been waiting for the right acquisition to do so,' said Canada Cartage CEO Jeff Lindsay.
Swiss-based Kuehne+Nagel said it will acquire Farrow, a Canadian customs brokerage and logistics firm with growing operations in the US and US-Canada cross-border trade.
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Canada Cartage and Kuehne+Nagel Group last week announced acquisitions that strengthen their cross-border business.
Canada Cartage purchased Montreal-based GTI Group, which owns several US trucking and logistics companies, while Kuehne+Nagel acquired Ontario-based customs brokerage and logistics provider Farrow.
Roadrunner, a large US-based less-than-truckload (LTL) carrier, said it will provide a cross-border service in December.
The expansion of the three companies, all representing different modes across the US-Canadian border, underscores the depth of the relationship between the two economies.
'Canada is a massive importer of just about anything, and the industrial infrastructure of Canada and the US is very close-knit,' said Roadrunner CEO Chris Jamroz.
Roadrunner will start with service to Ontario and Quebec and then expand to Vancouver, he said Mr Jamroz. 'Eventually we'll develop an internal business in Canada,' he said. 'As a Canadian, it feels like we're going home.'
The closure of US LTL trucking company Yellow and its Canadian subsidiary YRC Reimer in August put a major dent in cross-border LTL traffic from the US to Canada, Mr Jamroz said.
But Justin Maze, vice president of carrier management for digital transportation platform Transfix, said cross-border opportunities are 'becoming more prominent in the LTL sector lately.'
'The acquisitions are likely the result of the growth in nearshoring we are witnessing in our neighbours to the north and south,' Mr Maze said.
Right now, the cross-border freight market is muted, as are most freight markets north of the US-Mexico border. The number of trucks entering the US from Canada was essentially flat in the first nine months of 2023, according to data from the US Bureau of Transportation Statistics (BTS).
But the value of goods hauled by trucks, in both directions, has been rising, partly because of inflation. In September, that value was up 4.6 per cent year over year to US$36.6 billion, according to BTS data. That followed a 6.7 per cent year-over-year increase in August and a 5.4 per cent gain in July.
By acquiring GTI, Canada Cartage gets a broad footprint in the US market. GTI owns Houston-based drayage provider Jetco, Foxconn Logistics in Franklin, Tenn, and GTI USA in Des Moines, Iowa.
'We have been looking for an opportunity to enter the US market for several years but have been waiting for the right acquisition to do so,' said Canada Cartage CEO Jeff Lindsay.
Swiss-based Kuehne+Nagel said it will acquire Farrow, a Canadian customs brokerage and logistics firm with growing operations in the US and US-Canada cross-border trade.
SeaNews Turkey