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Feb 11, 2025 • by Sandy Ahluwalia
Canada-U.S. Trade War and its Impacts on Shipping
Shipping in Turbulent Times and how 🍁Secureship 🍁 can help ease that pain
Read moreby Paul Bourque
July 01, 2024
Key Points
While most Canadians live within 100 kilometres of the US border, we cover a lot of territory, as does America. So for example, FedEx’s fees for shipping a parcel from St. John’s, Newfoundland to Juneau, Alaska will be higher than from Windsor, Ontario to Detroit, Michigan. Also, FedEx offers variable delivery times, and the sooner the parcel needs to arrive, the more it will cost. In addition, the nature of the shipment affects shipping costs – its size and weight. And further, other incidental costs may arise depending on the parcel’s particulars and your needs – special handling, duties and taxes, insurance, or Saturday delivery.
The result is even a small shipment could be surprisingly costly. Which is how Secureship can be a big help to you or your enterprise. With its bulk buying power with FedEx, and other known carriers, you could reduce your base shipping costs by half. And we offer support and information so that all the necessary paperwork accompanies the parcel and all your concerns are allayed.
Table of Contents
Let’s compare two of FedEx’s delivery services for two different starting points and destinations for the same modest box (5 kg) leaving on a Monday morning.
The results are summarised in the table below:
Service from St. John’s, NL to Juneau, AK | FedEx’s Retail Prices (CAD) | Secureship’s Price with FedEx (CAD) | Arrival Time |
---|---|---|---|
International Priority | $345 | $173 | Next day by 5:00 pm |
International Two Day | $235 | $123 | Next day by 6:00 pm |
Service from Windsor, ON to Detroit, MI | |||
International Priority | $315 | $142 | Monday end of day |
International Two Day | $195 | $88 | Next day by 6:00 pm |
As expected, it is more expensive to both ship a parcel a further distance and have it arrive sooner. But it is also now very clear the scale of savings that Secureship can offer you – up to 50% of FedEx’s retail price.
Whether you ship with FedEx or another carrier, bigger and heavier shipments will obviously cost you more. But there are some nuances about size that you may not be unaware of, so please read on.
Parcels exceeding certain dimensions will be deemed oversized and surcharges will be applied to the shipment.
For example, when shipping from Canada to the USA with FedEx, a parcel is considered oversized if:
*Girth = 2 x width + 2 x height
FedEx’s rates for oversized parcels (as of June 2024) range $110 - $125 CAD per parcel plus a $12 - $15 CAD additional handling fee.
A shipment may also be considered oversized if its weight exceeds 68 kg even if it is shorter than 244 cm or has a length plus girth value less than 330 cm. And the same extra fees are charged.
Beyond a shipment’s delivery charges, a parcel and its contents may incur other costs and fees, such as duties and taxes, insurance, and Saturday and residential delivery services.
While the USMCA trade agreement has eliminated many tariffs on goods exchanged between Canada and the USA, there remain duties and taxes on a number of shipments from Canada to the USA – particularly tobacco products and alcoholic beverages.
And though the USA does not have a VAT or GST, imported goods may incur state taxes, which may reach 7.25%.
Parcel insurance is not mandatory, of course, but is often considered when shipping expensive or valuable goods. That said, be aware that not all goods are insurable – breakables, antiques, hazardous materials – to name a few. And should you take out insurance, the goods must be packed according to ISTA 3A packaging standards, or insurance may be null and void if damages occur during shipping.
Saturday and residential deliveries may be necessary for business purposes or convenience, however, they come at a cost.
So, simply avoiding Saturday parcel pick-ups and deliveries will save you money. And shipping a parcel to the recipient’s office or the local FedEx outlet will circumvent the fee for residential delivery.
The rates FedEx charges to ship a parcel from Canada to the USA can vary widely depending on its size and weight and the length of its journey, and isolated communities will cost even more. If a parcel is deemed oversized (heavier than 68 kg or longer than 244 cm), extra handling fees will be applied to it. Beyond these basic shipping charges, goods entering the USA may be liable to duties and state taxes, which are usually paid by the recipient, but do indirectly affect the shipper’s business. There may also be fees charged to insure a parcel and if you arrange for residential delivery or Saturday services. Finally, remember Secureship for all your shipping needs – from finding you the best price and service for your budget to answering any question you have about shipping to the USA or anywhere internationally.
Feb 11, 2025 • by Sandy Ahluwalia
Canada-U.S. Trade War and its Impacts on Shipping
Shipping in Turbulent Times and how 🍁Secureship 🍁 can help ease that pain
Read moreJan 23, 2025 • by Paul Bourque
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