Canada Customs Brokerage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022-2027)

The Canada Customs Brokerage Market is segmented by Mode of Transport (Sea, Air, and Cross-border Land Transport).

Market Snapshot

Canada Customs Brokerage Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >3 %

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Market Overview

The Canada customs brokerage market is estimated to register a CAGR of approximately 3% during the forecast period (2022-2027).

The pandemic had an impact on the operational effectiveness of distribution chains, from raw materials to finished goods. Manufacturing slowdowns due to a lack of labor or material inputs were unavoidable as the virus spread. By March 2020, overall Canadian goods imports had dropped by 8.4%, compared to March 2019. Canada saw its trade with most of its top 10 trading partners impacted by COVID-19 to some degree. In March 2020, drops in Canada’s imports ranged from 5.1% (Japan) to 24% (China). While trade with the United States was, on average, mildly affected with declines of about 6% for both exports and imports.

The Canadian customs brokerage market has been steadily expanding, and this trend is expected to continue throughout the forecast period. With rising imports, the number of entries processed by Canada Border Services Agencies (CBSA) has steadily increased. Imports reached a record USD 631 billion in 2021, up 12.2% from 2020 but 2.7% higher than in 2019. Despite increases observed in a large majority of product sections, some remained below 2019 levels. This was the case for imports of motor vehicles and parts (-17.6% compared with 2019) and energy products (-15.5% compared with 2019). Higher prices also had a positive impact on annual imports, but to a lesser extent than exports. In constant dollars, imports rose 8.3% in 2021.

The decision by the United States to remove Section 301 tariffs (Trade Act of 1974 (U.S.)) on over 100 medical items manufactured in China may have an impact on Canadian businesses to the extent that they export competing goods to the United States. The customs brokerage market is highly competitive, with a large number of brokers operating, particularly along borders. However, the major players control a sizable portion of the market. Companies that provide customs brokerage services are investing in R&D to gain a competitive advantage in the market. R&D spending is expected to increase over the forecast period as demand for streamlined and more effective customs clearance processes in short turnaround times grows.

Scope of the Report

Customs Brokerage firms facilitate the shipment and delivery of goods across geographical borders for individuals and organizations. A customs brokerage firm is responsible for knowing all the rules and regulations regarding the transfer of goods entering or leaving the borders and ensuring that they are followed in order to streamline the process of shipping goods as much as possible for the individual or organization. The Canada Customs Brokerage Market is segmented by mode of transport. By mode of transport, the market is segmented into sea, air, and cross-border land transport.

By Mode Of Transport
Cross-Border Land Transport

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Key Market Trends

Imports driving the growth of the market

The growth in imports is a prime driving factor for the customs brokerage market. The imports of the country have been growing over the years. On average, the imports are increasing by 6% with rising demand from domestic consumers. In 2020, Canada was the world's biggest importer of Armoured Vehicles (USD 924 million), Aqueous Paints (USD 537 million), Other Large Iron Pipes (USD 506 million), Cabbages (USD 454 million), and Railroad Ties (USD 124 million).

The majority of raw materials in Canada are imported from the United States and Mexico. The United States-Mexico-Canada Agreement (USMCA), which came into effect on July 1, 2020, will allow the country to import more and more products with lower import duties. The automotive industry relies on timely and consistent deliveries of raw materials or semi-finished products as inputs for further processing. It also necessitates the transportation of finished goods to warehouses or distribution centers. Consumer spending is the most important determinant of manufacturing demand.

Canada Customs Brokerage Market Share

Road transport dominates the Market

Canada relies heavily on North American countries for trade. In 2020, the US and Mexico accounted for 59.28% of the country's total imports. Road freight is the most common mode of transportation in Canada because it is the most cost-effective way to import and export goods from neighboring countries, and it contributes significantly to the country's economic growth.

Cross-border land transport between Canada and its North American partners, the United States and Mexico, is steadily increasing and is expected to continue to grow in the future, thanks to the USMCA. For the country, maritime and air freight transportation are also important modes of international cargo transport. Perishables, chemicals, and valuables, as well as electronics, have increased in popularity as a result of changes in consumer behavior, and these products are now imported from China and other Asian countries.

Canada Customs Brokerage Market Growth

Competitive Landscape

The market for Customs Brokerage in Canada is fragmented in nature. With a large number of customs brokers operating in the market, the competition is high. The top players in the market include United Parcel Service, FedEx Corporation, Livingston, A.N Deringer, DHL Group, etc.

Recent Development

December 2021 : The Canada Border Services Agency (CBSA) announced that Peru officially ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on September 19, 2021. Effective immediately, eligible Peruvian origin goods are now entitled to preferential tariff treatment under the CPTPP and applications for duty refunds will be accepted for goods that were imported on or after September 19, 2021. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a free trade agreement between Canada and ten other countries in the Asia-Pacific and Latin American regions: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

March 2022 : The Department of Finance Canada announced that they issued the Most-Favoured-Nation Tariff Withdrawal Order (2022-1) to remove Russia and Belarus from entitlement to the Most-Favoured-Nation (MFN) tariff, under the Customs Tariff of Canada. This was in response to the Russian Invasion of Ukraine, supported by Belarus, and in addition to the new sanctions Canada has imposed under the Special Economic Measures Act. Effective March 2, 2022, the General Tariff will be used to account all goods imported into Canada that originate from Russia and Belarus, with the Canada Border Services Agency (CBSA). Under the General Tariff, a customs duty rate of 35% is applicable on almost all goods. Russia, Belarus, and North Korea are the only countries whose imports are currently subject under the General Tariff.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Market




    1. 4.1 Current Market Scenario


      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Government Initiatives and Regulations

    4. 4.4 Supply Chain/Value Chain Analysis

    5. 4.5 Impact of COVID-19 on the Market

    6. 4.6 Insights on Imports and Custom Brokerage Services

    7. 4.7 Brief on Customs Brokerage as a Freight Forwarding Function

    8. 4.8 Overview of Customs Pricing

    9. 4.9 Insights on Customs Brokerage Services by End-user Industry

    10. 4.10 Industry Attractiveness - Porter's Five Forces Analysis


    1. 5.1 By Mode Of Transport

      1. 5.1.1 Sea

      2. 5.1.2 Air

      3. 5.1.3 Cross-Border Land Transport


    1. 6.1 Software

    2. 6.2 Consulting

    3. 6.3 Contract Logistics-based Customs Brokerage

    4. 6.4 Other Related Value-added Services


    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 DHL Group Logistics

      2. 7.2.2 Livingston

      3. 7.2.3 United Parcel Services

      4. 7.2.4 A.N Deringer

      5. 7.2.5 FedEx Corporation

      6. 7.2.6 Universal Logistics

      7. 7.2.7 Argo Customs

      8. 7.2.8 DB Schenker

      9. 7.2.9 Kuehne and Nagel

      10. 7.2.10 World Wide Customs Brokers Limited*

    3. *List Not Exhaustive

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport/Courier Industry to Economy)

    2. 9.2 Insights on capital flow

    3. 9.3 Exports and Import Statistics

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Frequently Asked Questions

The Canada Customs Brokerage Market market is studied from 2018 - 2027.

The Canada Customs Brokerage Market is growing at a CAGR of >3% over the next 5 years.

Livingston, United Parcel Services Inc, FedEx Corporation, A.N Deringer, DHL Group are the major companies operating in Canada Customs Brokerage Market .

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