Canada Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Canada Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Canada Freight and Logistics Market are anticipated to register a CAGR of more than 4.3% over the forecast period.

• The Canadian economy heavily depends on the transportation and warehousing industry. It contributed 3.6% of Canada's GDP in 2021 and employed more than 5.2% of its workforce. Truck transportation is the most frequently used mode of transportation in Canada's transportation and warehousing GDP sector. It makes up more than 28.0% of the industry; rail transportation is in second place with 11.4% of the market, followed by air transportation with 2.6% and water transportation with 2.6%.
• Canada is the second largest country in the world and offers a vast natural resource source that drives the nation's economy. These natural resources include energy sources such as oil & gas, coal, renewables, and minerals such as gold, silver, etc. New projects for extracting these natural resources and expanding large projects require shipping heavy project cargo in the country.
• The national supply chain in Canada is significantly aided by the freight rail system, which transports more than 332 million tons of vital products annually. To increase the freight rail system's transparency and competitiveness, the Ministry of Transportation has suggested changes to the Transportation Information Regulations.

Trucks are the primary means of transportation for moving products over Canada's vast road network. The industry also has difficulty meeting the rising demand, and the current driver shortage is a significant source of worry. Initiatives to diversify the trucking industry, like promoting underrepresented groups and enticing them to work in the industry, could aid in filling open positions.

The Canadian economy heavily depends on the transportation and warehousing industry. It contributed 3.6% of Canada's GDP in 2021 and employed more than 5.2% of its workforce. Truck transportation is Canada's most used means of transportation for moving products, according to the GDP sector for transportation and warehousing. It makes up more than 28.0% of the industry; rail transportation is in second place with 11.4% of the market, followed by air transportation with 2.6% and water transportation with 2.6%. To transport throughout the country.

One of the world's most vital is the Canadian transportation business. It has a USD 648 billion GDP. Around 40,000 U.S.-licensed drivers operate north-south trade, and more than 120,000 licensed truckers with both Canadian and US licenses use cross-border trade. Canada now has a shortfall of 18,000 truckers, claims Trucking HR. To satisfy rising consumer demand, the United Kingdom, on the other hand, is experiencing a shortfall of up to 100,000 "lorry" drivers.

With a turnover of USD 35.5 billion in 2021, Canada ranked tenth in the world for e-commerce, ahead of Australia and behind Indonesia. The Canadian e-commerce market grew by 14% in 2021, which helped the global economy grow by 15%. Global e-commerce sales are anticipated to rise over the coming years, just like Canada's. Over the coming years, the global expansion will continue as new markets develop. East and Southeast Asia, with their expanding middle class and lagging offline infrastructure, will be the driving force behind this progress.

Amazon.ca is the dominant participant in the Canadian online retail sector. In 2021, the store generated 9.8 billion dollars in revenue. With USD 3.8 billion and USD 2.3 billion, respectively, the second and third-largest stores after amazon.ca are walmart.ca and costco.ca. The top three stores collectively generate 45% of Canada's online sales. Every store in Canada that makes revenue is included in the rankings of stores. These businesses can operate worldwide or with a national emphasis, solely selling in their home nation. Only Canadian-generated payment was taken into account for this evaluation.

The top three product categories are electronics, fashion, and furniture. 59% of Canadian customers use credit cards when making purchases online, and another 20% use PayPal. By 2025, it is predicted that 27% of online payments will be made via digital wallets, which are growing steadily. The expansion of E-Commerce is a result of the number and variety of goods and services Canadians buy. Canadians most frequently purchase items from American-based retailers are clothing and accessories, followed by consumer electronics, toys, games, books, household goods, sporting goods, DIY and garden supplies, footwear, and jewelry.

The Canadian freight and logistics market is fragmented and highly competitive, with many global, regional, and local players. Some of the key players in the market include Aramex, C.H. Robinson Worldwide, Air Tindi Ltd, Canada Post Corporation, VersaCold Logistics Services, and many others. The growth of e-commerce and increased road freight in the Canadian market is driving the market, creating opportunities for new entrants. Apart from these trends, many mergers, acquisitions, and partnerships are taking place in the market.

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