How Expensive Is Cross-Border Shipping?

Shipping is one of the most common needs for business. In the global market, Canada and the United States have a very rich trade relationship, but the shipping costs between these two nations can get pricey. Shipping across the border can be a complicated and expensive process, as it involves large amounts of time and money that could be saved with a little planning and forethought. If you're shipping goods across borders, then it is essential to know the costs involved, in order to plan ahead, and to find the best ways of saving money where possible. 

Cross-Border Shipping

While the U.S. and Canada are quite close to each other geographically, shipping across the border can become quite costly, especially if you don’t know what you are doing. Shipping between the two countries is considered international shipping, which results in added customs fees and charges. There is a lot involved in the process of shipping or transporting goods across a border.  Each shipment will have a price tag unique to the type of goods shipped, their weight and size, as well as additional documentation required. In order to plan ahead and budget for shipping fees, it is important to consider the different key areas where you may incur costs in the cross-border shipping process.   

Documentation

The primary factor to consider in shipping across the border is the paperwork required. Between permits, customs invoices and other forms, you may expect to pay some fees to compile all of the paperwork needed for your shipment. Brokerage fees are one key area where you may be spending money, if you are using a customs broker to help you clear customs and compile your paperwork. A shipment will also need PARS and PAPS labels, in order to cross the border, which can add up if you are not using the right provider.

You can purchase PARS and PAPS labels for your shipment using Zipments, with 1 day shipping and real-time tracking of your PARS or PAPS status, so you know when your shipment is cleared. 

Duties and Taxes

Goods crossing the border will be subject to fees and taxes, based on the country you are importing into. Between the United States and Canada, there will be a number of duties and taxes to be paid, which are usually dependent on the goods value and type of goods shipped.  The importation rate is also dependent on each country’s regulations, so it will be important to stay up to date with the rules, and get your tariff or HS code correct on your forms, in order to accurately assess which fees you will need to pay.

For those importing into Canada, you can simplify your shipping process by using the Zipments Duties and Fees Calculator, which gives you a very accurate estimate of how much you may need to pay to customs when your shipment arrives at the border. You will save time and any surprises, when you plan ahead for your fees. 

Transportation

The mode of transportation, as well as the carrier you choose, will affect the final amount you may pay for shipping freight cross-border. Most often, trucks are used as ground transport for goods between the United States and Canada, but there are a variety of carriers with different fees to consider. 

It is also important to note whether you will need to pay accessorial fees, such as detention, after hours delivery, unpacking, lift gates or other additional equipment. Some carriers are also going to charge for correction of administrative errors which may have been discovered after pick up, in the instance of incomplete or missing documentation. To get the best price, it is important to shop around for a carrier which matches both your needs or budget, and this process can take both time and research.

Additional Costs

Packaging your shipment in the correct way, as well as purchasing insurance for it, may be other added costs to consider in your final shipping amount. If you are using a freight forwarder or a special storage facility for your goods, these will also add up in your final cost amount. Any time goods are transported away from their origin, there is bound to be risk of damage or loss to the shipment, which is why many opt to purchase insurance as well. Shippers will also need to purchase the proper packaging equipment, in order to avoid damage, especially if shipping LTL (Less-Than-Truckload), as there is a bit of a journey for the goods to get to their destination, and a lot of hands on your freight. 

How To Save Money In Cross-Border Shipping

In order to save money on your shipments, it is important to optimize the process as much as possible. Using Zipments for your customs clearance allows you to save time and avoid delays or penalties, by compiling the needed documentation correctly the first time. Zipments provides easy to complete customs invoice forms, which include AI technology to generate the tariff or HS code automatically, so you can avoid errors. PARS and PAPS tracking allows you to know when your shipment is cleared, so that drivers are not stuck waiting at the border. When you streamline your customs clearance, it is easy to avoid costly delays or fees tied to incorrect paperwork. 

You will want to avoid shipping too late, as you will need time to select the customs broker or carrier best suited for your needs. It is also imperative to keep up with the latest regulations of the country you are shipping to, so that you are not breaking rules when trying to import into either country.  Using technology to complete your research and keep an eye on your shipment will allow you to avoid delays which can become expensive.

There are a number of factors which can affect the cost of shipping cross-border, from transportation fees to duties and taxes. Knowing how to ship efficiently is essential, in saving you money when sending packages between countries.  The rising cost of shipping is a growing problem for businesses these days, so knowing where the charges are coming from is more important than ever. In order to grow your business, you want to be smart with your shipping choices.