What happened
Pandemic shocks, wildfires, and port strikes exposed deep fragilities. Logistics costs remain 22 percent above 2019 levels, eroding export competitiveness.
| Metric | 2019 | 2024 | 2025 (Q1) | Source |
|---|---|---|---|---|
| Logistics cost (% of sales, avg manufacturers) | 8.9 | 10.8 | 10.4 | Canadian Manufacturers & Exporters |
| Average port dwell time (days) | 3.4 | 5.8 | 5.1 | Transport Canada |
| Freight rail on-time performance | 83 % | 77 % | 79 % | CTA 2025 |
Current pivot
- Near-shoring: Mexico and U.S. supply lines gain favour.
- Digital freight platforms: tracking transparency now C-suite priority.
- Sustainability mandates: carbon-reporting integrated into shipping tenders.
What leaders can do
- Diversify routing. Use multimodal and inland ports to bypass chokepoints.
- Invest in data visibility. End-to-end tracking boosts reliability 5–10 %.
- Model climate risk. Use GIS mapping for wildfire and flood resilience.
- Collaborate regionally. Leverage provincial logistics clusters for scale.
Arcus Insight: Logistics resilience is national competitiveness. Digital visibility and redundancy are Canada’s new export currency.