Int. Trade & Transportation Part III Land Transportation

45
CHAPTER 1
INTRODUCTION
QUICK INDEX
TOPIC PAGE
Introduction 45
Canada’s Railways 46
Commodities Carried by Rail 49
Rail Equipment 51
Rail Intermodal Services 57
The Domestic Pool Car Service 65
Route Development 67
Rail Rates and Booking Cargo with a Rail Carrier 90
Documentation 92
Shipment Arrives at Destination; Advantages and Disadvantages of Rail 98

Transportation
Moving Freight by Truck 99
Commodities Carried by Trucks 104
Road Equipment 105
Trucking Rates and Charges 107
Route Development 112
Booking Cargo with a Truck Carrier 117
How the Cargo Moves 120
Transportation Documentation 122
Advantages and Disadvantages of Moving Freight by Truck 129
Most of the local, interprovincial and Canada/U.S./Mexico transportation of passengers and freight is
done over land. The Trans-Canada Highway is Canada’s longest national road. It extends east-west
across Canada between Victoria, British Columbia and St. John’s, Newfoundland and Labrador,
passing through all 10 Canadian provinces and linking Canada’s major cities. Car ferries link both,
Newfoundland and Vancouver Island, to the mainland.
Canada also has one of the largest rail networks in the world, with over 49,000 kilometres of track.
Canada’s largest trading partner is the United States; each country is the largest trade partner of the
other. Since 9/11, the efficient and cost-effective flow of goods and people across the Canada/U.S.
border has been challenged by new anti-terrorism programs, along with increased documentation
requirements, additional inspections, and new automated processing demands.3 To accommodate our
ever-increasing trade with the United States, transport infrastructure and accompanying rules and
regulations of the two countries must naturally be on par to meet the hourly and daily requirements of
the continuous flow of goods. Authorities in both countries recognize this and are doing everything
possible to ease and liberalize trade relations.
A plethora of public- and private-sector bodies play a role in shaping and protecting trade between our
two countries and, ultimately, between Canada, the U.S.A. and Mexico. Thus, the first part of this Land
Transportation section will shed some light on the most important components of the regulatory and
business environment, while the second part will deal with the more practical day-to-day requirements.
3 Source: Transport Canada.

46
CHAPTER 2
CANADA’S RAILWAYS
THE “YESTERDAY”
The first Canadian railway, the Champlain and St. Lawrence Railroad, was opened in 1836 outside of
Montréal, a seasonal portage railway to connect river traffic. It was followed by the Albion Railway in
Stellarton, Nova Scotia in 1840, a collier railway connecting coal mines to a seaport. Heavy expansion
of the rail system did not get underway until the Guarantee Act of 1849, which guaranteed bond returns
on all railways over 75 miles. This led to a rapid expansion of railways in Canada.
The Grand Trunk Railway was a railway system that operated in the Canadian provinces of Quebec and
Ontario, and in the American states of Connecticut, Maine, Michigan, Massachusetts, New Hampshire,
and Vermont. The Grand Trunk, its subsidiaries and the Canadian government railways, were
precursors of today’s Canadian National Railway.
Canada became a Confederation in 1867, nearly 100 years after the U.S.A. declared independence. At
that time, in the mid-19th century, there were few railway lines in Canada, all in the east. Canada’s
population then was a mere 4 million and the Dominion comprised just four provinces: Nova Scotia,
New Brunswick, Quebec, and Ontario. To the west stretched thousands of kilometres of sparsely
populated prairie and mountain areas, accessible only by canoe or on horseback. With available arable
land gradually being occupied in the U.S., some American politicians and settlers spoke of annexing
the prairies to the north, and Canadians were quite naturally disturbed by this threat from their southern
neighbour, which already had a population 10 times that of Canada. In response to this threat, the
Canadian government drew Manitoba and British Columbia into the Confederation in 1870 and 1871,
respectively. One of the promises made to British Columbia for becoming a member of the new
Confederation was that the government would build a rail link connecting the Confederation within 10
years. Amid political scandal and corruption at the time, the building of the railway stalled. With the
return of Prime Minister John A. Macdonald to power, and British Columbia threatening to secede from
Confederation, the Canadian government started construction in May 1880, from Port Moody, B.C.,
eastward along the Fraser River Valley. With construction started in British Columbia and the Prairies,
the government searched for private investors to complete the railway. Consequently, a group of
Scottish-Canadian businessmen formed a group of investors, and Canadian Pacific Railway Company
was incorporated on February 16, 1881.
With the technology available in the 19th century, the construction was back-breaking work, with the
Rockies proving, surprisingly enough, to be less of a problem than the terrain across the north of Lake
Superior, which involved both blasting through the solid rock of the Canadian Shield and trying to lay a
solid rail bed through seemingly bottomless marshlands.
Nevertheless, despite all the problems, construction was completed in 54 months, almost six years
ahead of schedule, and the last spike was driven on November 7, 1885. This completed the biggest
railroad construction project ever undertaken anywhere and created the world’s largest rail network of its
time.
CPR Last Spike Ceremony, Craigellachie, B.C.

47
As Canada developed and the Canadian west expanded, there was a growing need for additional rail
service in the area north of the territory serviced by Canadian Pacific. By 1915, Canadian Northern
Railways and Grand Trunk Pacific Railways each built transcontinental lines through the Rockies.
Canadian Northern Railway terminated in Vancouver, while Grand Trunk Pacific Railways had track
running from Winnipeg to Prince Rupert, B.C., approximately 885 km north of Vancouver, creating a
new seaport. To establish a truly transcontinental railway, the Government of Canada also financed the
construction of a railway line to connect with Grand Trunk Pacific in Winnipeg and onward to Moncton,
New Brunswick. This became known as the National Transcontinental Railway.
By 1915, Canada had three transcontinental rail systems and over 56,300 km of track. During the First
World War, British assistance in financing the railways was reduced, and railroads were required to
devote their resources to assist in the war effort, often at a rate lower than market value. This resulted in
many rail companies, but not Canadian Pacific, falling deeply into debt.
At the end of the war, then Prime Minister Robert Borden believed that what Canada needed was a
national transportation system owned by Canadian people, serving Canadian ports running through
Canadian territory. By 1918, the Government of Canada had taken over Canadian Northern Railways,
National Transcontinental Railway and several other railroads that were funded through government
loans.
Canadian National Railway Company was formed in June 1919 by an Act of Parliament, allowing it to
become an incorporated company. Canadian National took over Grand Trunk Pacific in 1920 and Grand
Trunk Railway in 1923, thereby becoming one of the world’s largest railroads at the time, with over
35,000 km of track.
46
CHAPTER 2
CANADA’S RAILWAYS
THE “YESTERDAY”
The first Canadian railway, the Champlain and St. Lawrence Railroad, was opened in 1836 outside of
Montréal, a seasonal portage railway to connect river traffic. It was followed by the Albion Railway in
Stellarton, Nova Scotia in 1840, a collier railway connecting coal mines to a seaport. Heavy expansion
of the rail system did not get underway until the Guarantee Act of 1849, which guaranteed bond returns
on all railways over 75 miles. This led to a rapid expansion of railways in Canada.
The Grand Trunk Railway was a railway system that operated in the Canadian provinces of Quebec and
Ontario, and in the American states of Connecticut, Maine, Michigan, Massachusetts, New Hampshire,
and Vermont. The Grand Trunk, its subsidiaries and the Canadian government railways, were
precursors of today’s Canadian National Railway.
Canada became a Confederation in 1867, nearly 100 years after the U.S.A. declared independence. At
that time, in the mid-19th century, there were few railway lines in Canada, all in the east. Canada’s
population then was a mere 4 million and the Dominion comprised just four provinces: Nova Scotia,
New Brunswick, Quebec, and Ontario. To the west stretched thousands of kilometres of sparsely
populated prairie and mountain areas, accessible only by canoe or on horseback. With available arable
land gradually being occupied in the U.S., some American politicians and settlers spoke of annexing
the prairies to the north, and Canadians were quite naturally disturbed by this threat from their southern
neighbour, which already had a population 10 times that of Canada. In response to this threat, the
Canadian government drew Manitoba and British Columbia into the Confederation in 1870 and 1871,
respectively. One of the promises made to British Columbia for becoming a member of the new
Confederation was that the government would build a rail link connecting the Confederation within 10
years. Amid political scandal and corruption at the time, the building of the railway stalled. With the
return of Prime Minister John A. Macdonald to power, and British Columbia threatening to secede from
Confederation, the Canadian government started construction in May 1880, from Port Moody, B.C.,
eastward along the Fraser River Valley. With construction started in British Columbia and the Prairies,
the government searched for private investors to complete the railway. Consequently, a group of
Scottish-Canadian businessmen formed a group of investors, and Canadian Pacific Railway Company
was incorporated on February 16, 1881.
With the technology available in the 19th century, the construction was back-breaking work, with the
Rockies proving, surprisingly enough, to be less of a problem than the terrain across the north of Lake
Superior, which involved both blasting through the solid rock of the Canadian Shield and trying to lay a
solid rail bed through seemingly bottomless marshlands.
Nevertheless, despite all the problems, construction was completed in 54 months, almost six years
ahead of schedule, and the last spike was driven on November 7, 1885. This completed the biggest
railroad construction project ever undertaken anywhere and created the world’s largest rail network of its
time.
CPR Last Spike Ceremony, Craigellachie, B.C.

47
As Canada developed and the Canadian west expanded, there was a growing need for additional rail
service in the area north of the territory serviced by Canadian Pacific. By 1915, Canadian Northern
Railways and Grand Trunk Pacific Railways each built transcontinental lines through the Rockies.
Canadian Northern Railway terminated in Vancouver, while Grand Trunk Pacific Railways had track
running from Winnipeg to Prince Rupert, B.C., approximately 885 km north of Vancouver, creating a
new seaport. To establish a truly transcontinental railway, the Government of Canada also financed the
construction of a railway line to connect with Grand Trunk Pacific in Winnipeg and onward to Moncton,
New Brunswick. This became known as the National Transcontinental Railway.
By 1915, Canada had three transcontinental rail systems and over 56,300 km of track. During the First
World War, British assistance in financing the railways was reduced, and railroads were required to
devote their resources to assist in the war effort, often at a rate lower than market value. This resulted in
many rail companies, but not Canadian Pacific, falling deeply into debt.
At the end of the war, then Prime Minister Robert Borden believed that what Canada needed was a
national transportation system owned by Canadian people, serving Canadian ports running through
Canadian territory. By 1918, the Government of Canada had taken over Canadian Northern Railways,
National Transcontinental Railway and several other railroads that were funded through government
loans.
Canadian National Railway Company was formed in June 1919 by an Act of Parliament, allowing it to
become an incorporated company. Canadian National took over Grand Trunk Pacific in 1920 and Grand
Trunk Railway in 1923, thereby becoming one of the world’s largest railroads at the time, with over
35,000 km of track.
THE SITUATION TODAY
A new regulatory environment and changed market conditions have profoundly affected the railways in
North America. Complex and difficult issues had to be dealt with to keep the rail systems viable and
competitive. Management responded to these pressures through structural realignments, system
efficiency improvements, marketing initiatives and services, mergers, the implementation of new
technologies and operating methods and divestiture of some rail lines to short-haul operators.
The face of railways in Canada changed dramatically in 1987 when the Canadian government
deregulated the railway industry. Primarily, this allowed CN to divest itself of money-losing branch lines
that were required to run as part of federal policies, and paved the way for CN to become a private,
publicly traded company.
In 1996, The Canada Transportation Act came into effect to coincide somewhat with The U.S.
Interstate Commerce Commission Termination Act of 1995 that further de-regulated the industry as a
whole so as to allow it the flexibility required to stay competitive. Changes included:
Streamlining the process for abandoning and transferring rail lines;

Removal of regulation governing the operation of railways and corporate governance; and
Eliminating subsidy payments to the railways to help counter unprofitable freight and passenger services.
In other words, the railways were to become a market- and profit-driven undertaking and, as a
consequence, combined revenues have increased considerably since de-regulation took place.
Railways reverted to their core business activity through divestiture of non-core businesses and assets
and by investing heavily in productivity-enhancing practices and technologies. Such initiatives included,
but are not limited to:
Automated systems to improve scheduling and coordination, track maintenance mechanization programs
and car maintenance technology;
Replacing the caboose with end-of-train electronic monitoring units and adopting more efficient
locomotives;
Instituting two-person crews;
Introducing next-generation unit trains for bulk commodities with improved technology and higher
payloads;
Entering into merger agreements with U.S.-based railroads;
Management agreements to jointly manage intermodal and automotive transport products;
Introduction of highly effective and efficient intermodal facilities and services; and
Raising of tunnel clearance to allow for double-stack container trains.
48
Powerful forces are reshaping the North American economy through the rapid rise of north-south trade,
the increasing integration of Canadian, U.S. and Mexican economies and corresponding shippers’
demand for more efficient transportation services to market in all three countries. Railways also must
respond to such demands by finding new solutions and mergers to operate as an integrated rail
network with a continental reach and with critical new north-south corridors.
Traditionally, Canadian railroads served U.S. points nearest to the border, restricting their hauls to bulk
commodities such as newsprint to Chicago, lumber to Pennsylvania or aluminum ore to processors in
the east. This left the huge market for north-south traffic bound for consuming areas deeper in the North
American interior to truckers alone. Now, with such rail mergers and/or alliances such as CN/Illinois
Central/BNSF, single-line services can be offered to markets in Houston, Denver and Los Angeles.
Plastics and chemical companies can have the availability of single-line services to Texas and Mexico,
and domestic intermodal customers can have a network that puts most of the continent within reach on
a single line.
With single-line services, shippers do not lose time through switching and interchanging and the
railroads can reduce car cycle time and, through that, increase system capacity without adding new
rolling stock. Other benefits through mergers and combined systems can be demonstrated through
more service options and gateway routings, reduced transit times, enhanced reliability, unified customer
service information for easier tracking, tracing and ordering, simplified billing and improved asset
utilization.
The Regulatory Environment for Railroads

The regulatory environment in the rail sector is considerably simpler than that found in the trucking
industry. It is largely governed at the federal level through the Canadian Transportation Agency (formerly
the National Transportation Agency) in Canada and the Surface Transportation Board (STB) in the
United States. Because the jurisdiction of these bodies does not extend across the border, cross-
border rail movement is subject to Canadian law while on the Canadian side of the border and to U.S.
law while in the United States. Still, with de-regulation having taken place in both countries, government
involvement with transport operations has been largely restricted to safety issues and safeguarding a
competitive environment, as well as activities that might affect anti-trust laws.
The security of international bridges and tunnels in Canada is subject to the International Bridges and
Tunnels Act (IBTA), which came into effect in April 2007. The security of federally regulated railways in
Canada is subject to the Railway Safety Act.
49
CHAPTER 3
COMMODITIES CARRIED BY RAIL
Aside from automobiles and vehicles carried in special railcars and manufactured goods carried in
intermodal containers, the main commodities transported by rail in Canada are non-manufactured
agricultural, mineral and similar natural resources, i.e., wheat, other grains and cereals, food and food
products, non-metallic minerals, salt and stone, iron ores and other metallic ores and concentrates,
coal, petroleum and coal products, potash and other fertilizers, chemicals and chemical products, wood
and wood products, paper and paperboard, cement and other non-metallic mineral products.4
The Importance of Measuring Cargo

It is crucial for a freight forwarder to obtain correct cargo measurements and weights in order to ensure
that adequate transport equipment is used and that any exceptions and/or special requirements are
taken into account (permits, routes, handling equipment, special equipment, etc.). The shipper is
responsible to provide accurate cargo measurements and weights to the freight forwarder/carrier; this
information is usually included in the commercial documentation (commercial invoice and/or packing
list). When the cargo is shipped as a part-load - less-than-truck load (LTL), less-than-car load (LCL)),
the forwarder has the possibility to have it measured and weighed at the receiving terminal and make
adjustments accordingly. There are weight verification requirements (IMO) since July 1, 2016, making
weighing of ocean cargo compulsory.
Over-Dimensional Cargo
Over-dimensional cargo, also called out-of-gauge cargo, oversize cargo or dimensional cargo, is freight
that exceeds the legal standard-size criteria of carriers based on the mode of transport, the area and
the itinerary. For rail, over-dimensional cargo is defined by Canadian National Railway as any load that
meets one or more of the following conditions:
12 ft in height or 15 ft 6 in or more above top of rail (TOR) once loaded;

Combined centre of gravity equal to or exceeding 98 in;
10 ft 8 in in width, or length or width exceeding the car deck and greater than Plate ‘C’ (height
designation that indicates a car height of 15 ft 6 in, which is standard for most boxcars, covered hoppers
and all centrebeam flatcars;
Gross weight in excess of track capacity on a standard railcar;
Any load requiring a 6-axle car or greater.
Canadian Pacific Railway generally defines dimensional loads as those exceeding 11 ft high and/or 11
ft wide, 52 ft long and heavier than 150,000 lb. Drawings are usually required, and each railway has its
specific clearance-request form. Careful planning, advance notification and acceptance by a carrier, as
well as appropriate packaging, marking and securing, are required when moving such cargo.
The guiding principles for overweight cargo are similar to those for over-dimensional cargo. The
physical weight limits of railcars and terminals need to be confirmed with the railway, as special
clearance and special equipment may be needed.5
A copy of CN’s dimensional load clearance file request form is on the following page.
50
Source: CN
4 Source: Statistics Canada

5 Source: Ministry of Transport
51
CHAPTER 4
RAIL EQUIPMENT
CPR and CN have a vast variety of general and specialized equipment to meet the needs of the
marketplace and the forwarder and its client specifically. Below is just a short list of available equipment.
Well Cars
This type of railcar is designed to transport double-stacked containers. The bottom container sits in a
depressed “well” between the trucks (“truck” is the wheel/bogie assembly on which the car rides). By
sitting between the trucks, the bottom container rides low and a second container can be stacked on
top of it and remain within the clearance envelope. The car may be designed to handle only double-
stacked containers, or it can be a dual-purpose car that can handle either double-stacked containers or
trailers.
52
Spine Cars
The container (or trailer) on a spine car sits above the trucks. Due to the height of the platform above
rail, there is insufficient clearance to handle double-stacked containers. The car may be designed to
handle single-stacked containers or trailers, or either (known as dual-purpose cars).6
Source: www.steelcar.com
53
Boxcars
A boxcar (the American term; the British call this kind of car a “goods van”) is a railroad car that is
enclosed and usually used to carry general freight. The boxcar, while not the simplest freight car
design, is probably the most versatile, since it can carry most loads. Boxcars have side doors of
varying size and operation, and some include end doors and adjustable bulkheads to load very large
items. The length of a boxcar may range from 50 ft to 60 ft. Some railways operate specialized boxcars
with foam-insulated walls, as well as temperature-controlled boxcars, that have both, insulated walls and
a reefer unit to control the temperature. Boxcars are compartmentalized and can be used for special
purposes. Some are capable of carrying up to 6,600 ft3 of cargo, with door openings ranging from 10
to 18 ft. These boxcars are used in panel board and lumber service.
Gondolas
A gondola is an open-top type of rolling stock that is used for carrying loose bulk materials. Because of
their low sidewalls, gondolas are used to carry either very dense material, such as steel plates or coils,
or bulky items, such as prefabricated pieces of rail track. It is used in top loading for bulk cargo.
Rotary Gondolas
These specialized heavy-duty cars are designed for use in unit trains. They can be loaded and
unloaded in minutes without being uncoupled. The capacity of these rotary gondolas ranges from 101
to 116 tons.
Hopper Cars
A hopper car is a type of railroad freight car used to transport loose bulk commodities, such as coal,
ore, grain, track ballast, and the like. It has a permanent roof and a hinged floor sloping to one or more
hoppers for discharging contents by gravity. This type of car is distinguished from a gondola car in that
it has opening doors on the underside or the sides to discharge its cargo. The development of the
hopper car went along with the development of automated handling of such commodities, with
automated loading and unloading facilities. There are two main types of hopper car: open and covered.
54
Automobile Cars
An automobile car is used to transport new automobiles from the factory to the market. These enclosed
cars protect the automobiles inside. They are usually double or triple deckers.
Flatcars
A flatcar is a piece of railroad rolling stock that consists of an open, flat deck on a pair of trucks or
bogies. The deck of the car can be wood or steel, and the sides can include pockets for stakes or tie-
down points to secure loads. They are up to 89 ft long and have a capacity from 72 tons to 113 tons.
Flatcars designed for carrying machinery have sliding chain assemblies recessed in the deck. Flatcars
are used for loads that are too large or cumbersome to load in enclosed cars, such as boxcars. They
are also often used to transport containers or trailers in intermodal shipping - trailer on flat car (TOFC)
and container on flat car (COFC).
Centrebeam Flatcars
These railcars are specially designed for the lumber industry. The 73-ft centrebeam car combines ease
of loading and unloading with maximum safety for the product. 51-ft and 66-ft centre stake cars are also
designed for lumber.
Bulkhead Flatcars
Used in the forest products industry for transporting lumber, these bulkhead flatcars are suitable for
carrying loads of 80 to 97 tons.
55
Depressed Centre Flatcars

These railcars are used to transport mining equipment, pit equipment and machinery. The depressed
centre allows for more clearance through tunnels and under bridges. It also lowers the centre of gravity
of the car and piece of equipment, so it is less likely to topple over while going around a corner.
DOT-111 Tank Cars

Used to transport a wide spectrum of liquid dangerous goods, such as crude oil or ethanol fuel, DOT-
111 is a type of unpressurized tank car designed to maintain vertical alignment to prevent couplers from
overriding and puncturing the tank end frames. Following serious accidents, these cars are now built to
a new Transport Canada-approved standard. The changes include thicker steel and additional top fitting
and head shield protection.7
The Unit Train

A unit train, also called a block train, is a train in which all of the cars that make it up are shipped from the
same origin to the same destination. This saves the hassle of assembling and disassembling trains at
rail yards near the origin and destination. Unit trains are, however, economical only for high-volume
customers since they carry only one commodity, using cars all of the same type that are sometimes
identical.
CPR pioneered the concept of the “unit train” system in Canada. One such system carries coal from
the interior of British Columbia to the Roberts Bank bulk-handling port near Vancouver for export to
Japan. Another 104-car train moves thermal coal from Corbin, B.C. eastward to Thunder Bay, Ont. Unit
trains are almost never uncoupled and are on the move almost continuously, carrying more than 10
million tons of coal each year.
CPR Unit Train Carrying Coal to Roberts Bank, B.C.
Source: www.ferriesbc.proboards.com; JSTphoto

56
Moving Over-Dimensional Cargo

When moving over-dimensional freight, the forwarder must always keep in mind rail clearances for any
tunnels or bridges that the cargo might pass over or through while en route. The railways have specially
trained personnel, qualified in handling and itinerary planning for the movement of a heavy-lift or
oversized piece of equipment.
For example, consider the movement by CPR of kiln tires from Manitoba to B.C. and back again. These
tires are used to rotate a giant kiln that produces clinker, a main ingredient in cement. Each tire weighs
34,000 kg and measures more than 5 metres in diameter. CPR transported the tires in a rarely seen “pit
flatcar.” This is a flatcar with an opening in the centre of the floor (the pit) into which the load is lowered.
Using this flatcar reduced the overall height and lowered the centre of gravity of the freight enabling it to
be transported through regular rail tunnels and curves without danger of toppling over.
CN and CP produce valuable handbooks of all of their rolling stock, giving full dimensional details on
each type of car. We recommend obtaining copies of these brochures from the railways for your future
reference.
Dimensional Load Set to Leave CPR Edmonton Yard

How to Read a Railcar
The markings on each railcar distinguish it from other cars. They tell you the car size, weight capacity
and other important facts.
6 Denis Lupien, Market Manager, CN International.

7 Source: Government of Canada
57
CHAPTER 5
RAIL INTERMODAL SERVICES
INTERMODAL AND MULTIMODAL TRANSPORTATION

The terms “multimodal” and “intermodal” are often used interchangeably and their meanings can vary
based on usage. For example, “intermodal” is commonly used in North America, referring to trailers on
railcars, whereas “multimodal” may be more commonly used in Europe, often referring to ocean
containers on barges, a very common mode of transport in Europe, but rare in North America.
Looking at the definitions in the Oxford dictionary, “multimodal” is “characterized by several different
modes of activity or occurrence” and “intermodal” “involves two or more different modes of
transportation in conveying goods”. This is not very helpful in distinguishing one from the other. If we
consider that both involve two or more modes of transport, we could even say that almost every
shipment is “intermodal” or “multimodal,” particularly air freight and ocean freight movements, as there
is always a land transportation element involved. It is fair to say that, in broad terms, “multimodal” and
“intermodal” refer to the same type of situation, i.e., when several modes of transport are used.
However, the main difference comes from the practice of the trade, as “multimodal” generally refers to
a single contract with a single service provider issuing a single transport document or bill of lading,
whereas “intermodal” tends to involve several transport partners and separate contracts.
So “multimodal” is more specific. The marine mode is where we will see “multimodal bills of lading,”
sometimes called “combined transport bills of lading,” when an ocean carrier, for example, moves
containers between Asia and Central or Eastern Canada via marine and rail modes and issues a single
document to cover the whole voyage (also called a “through bill of lading,” just to make it more
confusing!). And “intermodal” will likely continue to be used by customers/rail carriers/road carriers to
describe a trailer belonging to a customer, a carrier, a forwarder or a 3PL moving by rail for the long haul
and by road for the local pick-up/delivery.
A prime example of intermodal transportation by rail is the movement of marine containers overland on
container flatcars. Such containers can easily be loaded onto a container flat railcar or onto a road
chassis pulled by a tractor-trailer and moved to the port of exit where a container crane lifts the box
from the container flatcar or road chassis onto the ship. After completion of the ocean voyage, a similar
crane can lift the container from the vessel onto a flat container railcar at the port of discharge for inland
transportation to an inland container terminal. At such yards, the containers would then be transferred
from the flat container railcar directly to another road chassis to be pulled by a tractor-trailer for delivery
to the final consignee.
Such an intermodal movement uses various types of transportation systems (modes) to move the
cargo from factory of origin to destination plant without the goods ever being touched. All containers are
sealed as an extra precaution against theft. Multimodal transport offers several advantages; namely, it
minimizes time loss at transshipment points, provides faster transit of goods, reduces burden of
documentation and formalities, and saves costs.
CPR and CN operate intermodal terminals in all major Canadian cities, as well as in strategic centres in
the United States. The largest terminals in Canada for both CPR and CN are found in Toronto. Both
carriers now move in excess of one million carloads annually.
Shippers may provide their own trucks or containers, or the railway company can provide intermodal
containers, if they are for domestic use. The railways operate daily services from all major intermodal
terminals. Some typical transit times for container movement by rail between ports are shown below:
Toronto - Montréal, 18 hours;

Toronto - Vancouver, 104 hours (5 days);
Halifax - Toronto, 42 hours (2 days);
Halifax - Vancouver, 184 hours (8 days);
Vancouver - Chicago, 157 hours (6 days); and
Montréal - Chicago, 56 hours (3 days).
58
VARIETIES OF INTERMODAL SERVICE

Intermodal cars come in many different configurations, and the specifics of the design affect the car’s
ability to transport containers (a “car” may have one or up to five “platforms” permanently connected
between the couplers). Each car has one number, with each platform designated by a letter (the “A”
platform being the end one without the handbrake, the “B” platform being the end one with the
handbrake, and the other platforms being consecutively “C” through “E,” with “C” being adjacent to “A”).
Most cars capable of carrying containers can handle a single container of at least 40 ft or two 20-ft
containers in the bottom position. Only a single, full-length container can be carried in the top position.
While the term “intermodal,” strictly speaking, describes the entire spectrum of modes of transport, for
railway personnel, it is used to define either a trailer on a flatcar or a container on a flatcar. These railcar
configurations are abbreviated as follows:
COFC (Container on Flatcar)

COFC can be used for the intermodal transportation of cargo internationally and domestically, known to
freight forwarders as “intermodal international” and “intermodal domestic.” For intermodal international,
COFC is used as described previously: A marine container is loaded at the exporter’s plant, shipped
overland by road or rail to the port of exit, and then shipped from Canada. Intermodal domestic is
similar in principle; the only difference is that the container is not loaded onto a ship for export. Goods
are loaded into a container at a seller’s warehouse, taken to a terminal, generally railed a rather long
distance to another terminal, and then delivered to the buyer’s warehouse. This may be within Canada,
or in the U.S.A. or Mexico. Intermodal domestic containers are larger than their marine counterparts and
usually of lighter construction as they do not have to withstand the volatile forces encountered at sea.
TOFC (Trailer on Flatcar)

Transportation by TOFC is essentially the same as COFC, except that the “box” in question is not a
marine container, but rather a full trailer unit that is lifted, complete with wheels, and placed (piggyback)
on a flatbed railcar. Both major Canadian railways are phasing out this aspect of their intermodal
business, opting to encourage the use of domestic intermodal containers.
Trailers on Flatcars Crossing over the Don Valley Parkway in Toronto, Ont., on
the CPR
59
COFC AND TOFC PLANS

Plan 1 - Motor Carrier
The railway moves trailers of Class A motor common carriers, ramp to ramp. Motor carriers pay a per-
trailer charge.
Plan 2 - Rail-Operated Door-to-Door Service
The railway provides the trailer/container for the shipper on railway-leased or railway-owned flatcars.
The railway also furnishes pick-up and delivery. If multiple pick-ups and/or deliveries are required, this
service is available at an extra cost.
Plan 2 ¼
This is the same as the basic Plan 2, except that either pick-up or delivery is included in the price, but
not both.
Plan 2 ½
This again is similar to Plan 2, except that the shipper assumes the responsibility for pick-up and
delivery under a special arrangement.
Plan 3 - Shipper-Owned
The railway carries trailers/containers owned by shippers ramp to ramp. Pick-up and/or delivery service
may be arranged separately.
Plan 4 - Shipper-Owned
The railway carries trailers/containers owned by shippers, on cars also owned or leased by shippers.
The shipper or consignee is also responsible for pick-up and delivery service.
Plan 5 - Motor Carrier- or Railway-Owned
The railway carries its own or motor common carrier trailers, at truck-rail rates.
CAPACITY
For the purpose of this section, please note that the term “gross weight” indicates the total weight of the
empty container (tare weight) and the weight of the lading (net weight), if any.
The carrying capacity of cars is generally classified as follows:
Standard capacity, referring to cars with platforms able to carry up to 130,000 gross pounds per platform;
and
High capacity, referring to cars with platforms able to carry over 160,000 gross pounds per platform.
There are typically no platforms designed to carry weights in between these ranges. The primary
component in determining the capacity is the number of trucks per platform:
Standard-Capacity Cars
Adjoining platforms on articulated cars share a common truck. The full weight of each interior platform
is supported over half a truck at each platform end, resulting in a lower carrying capacity of the platform.
However, the length per platform is also lower, as each interior platform is the platform length plus one
truck, while the end platforms are the platform length plus 1.5 trucks.
High-Capacity Cars
“Single-platform cars” and “drawbar-connected cars” have two trucks per platform. With the full weight
of each platform supported by a truck at each platform end, the carrying capacity of the platform is at its
maximum. The trade-off for the higher carrying capacity is the length per platform - one platform plus
two trucks.
With 20-ft containers approaching a typical maximum of +/- 53,000 lb and 40-ft + containers with a
typical maximum of 65,000 lb - 70,000 lb, high-capacity cars can handle:
Two 20-ft loaded containers plus one 40-ft loaded container; or

Two 40-ft + containers heavy loaded.
Standard-capacity cars can typically handle only two 20-ft loaded containers (sometimes an empty 40-ft
+ container can be loaded in the top position) or two 40-ft loaded containers where at least one of the
loads is a lighter weight.
Highway limits in most U.S. jurisdictions limit the gross weight of a 40-ft + loaded container to +/-
52,000 lb; double stacking standard-capacity cars, therefore, is not as much of an issue in the U.S. as
in Canada.
The average capacity per platform is as follows:
Capacity Length (ft) Load (lb)

40-ft standard capacity (articulated) +/- 53 120,000
40-ft high capacity (drawbar connected) +/- 64 170,000
53-ft standard capacity (articulated) +/- 68 120,000
53-ft high capacity (drawbar connected) +/- 77 170,000
61
OWNERSHIP
Intermodal cars originate from three sources:
Railway-Owned
These are cars that are owned or leased by the railways and carry their markings. The railway is
responsible for maintenance. The railway does not send railway-owned intermodal cars off-line;
however, if they were shipped offline, the foreign road would pay the railway owner a per diem for their
use.
TTX Intermodal Cars

TTX is a railcar supplier jointly owned by nine railroads (UP, BNSF, CSX, NS, CN, CP, KCS, FEX,
PanAm) to supply, maintain and manage intermodal cars, among others. Each railroad has a different
ownership share and is entitled to an established percentage of the TTX 53 ft double-stack fleet and a
percentage of the 40 ft double-stack fleet.
TTX Conventional Cars

TTX also provides “conventional” cars (either spine or dual-purpose cars on which containers cannot
be double stacked). Railways typically use these in lanes where trailers are handled. TTX has about
27,000 slots of conventional cars. TTX is responsible for the maintenance of fleet, and charges
members a per diem based on possession and a mileage charge based on distance travelled.
62
INTERMODAL TERMINALS
In general, intermodal terminals are the logistical nodes located at large metropolitan areas where
containers are loaded to railcars for outbound trains and offloaded from railcars on inbound trains for
delivery to customers.
Terminals consist of:
In- and out-gates to handle trucks interchanging containers;

“Pad” tracks where containers are loaded/off loaded to/from railcars by cranes; and
Receiving/departure tracks to yard inbound trains and make-up outbound trains.
Several different types of fixed and moving equipment are utilized in the day-to-day operation of
intermodal terminals, including:
Automated gate systems;

Various types of cranes;
Shunt tractors; and
Specialized light vehicles.9
Mobile Gantry Crane at CPR’s Vaughan Intermodal Facility Near Toronto, Ont.
Source: Canadian Pacific Railway News

63
CENTRE OF GRAVITY
In addition to complying with container-length and platform-weight restrictions, containers must be
loaded onto railcars respecting centre-of-gravity rules. For safety reasons, the weight distribution in
double-stacked containers must not be top-heavy. The centre of gravity is based on the weight of the
car, and the height and weight of the containers to be double stacked. Operationally, challenges arise
when trying to double stack two heavily loaded high-cube containers on standard capacity cars. For
example, on an articulated platform with a capacity of 130,000 lb, if the bottom container is a standard
height container (i.e., 8 ft 6 in in height) weighing 64,000 lb, the top container could be the full 66,000 lb
(using the full platform capacity). However, if the bottom container is a high-cube container (i.e., 9 ft 6 in
in height), the top container will be limited to 65,000 lb if it is a standard height container, and 60,000 lb
if it is a high-cube container. High-cube containers make up a large and increasing percentage of the
international fleet. Railways incorporate safeguards to ensure the loading pattern respects the centre-
of-gravity (and all other) loading requirements.
FLEET SIZING
Factors affecting the number of cars allowed to meet intermodal customers’ requirements are:
Demand by lane;
Train velocity;
Terminal dwell (impacted by velocity and train schedule);
Slot utilization; and
Car bad order rate.
AERODYNAMICS
Train aerodynamics significantly affects the amount of fuel required to pull an intermodal train. The
rolling resistance of a train is relatively low (steel wheels with a contact surface the size of a dime on
steel rail), but the wind resistance is proportional to the square of the train speed. Intermodal trains are
usually the fastest freight trains and the double-stacked containers provide a large surface area to catch
the wind, thus it is important to load the cars respecting the aerodynamic profile of the train. Where
possible, containers will be loaded to avoid gaps in the loading profile.
65
CHAPTER 6
THE DOMESTIC POOL CAR SERVICE
INTRODUCTION
Domestic pool car operators are frequently referred to as “domestic freight forwarders.” In order to
avoid confusion, we shall refer to them as “pool car operators.” Our purpose in mentioning them is to
understand the differences between their industry and ours, and to learn how and where the two
industries complement each other.
Pool car operators are in the business of assembling, or “pooling,” many individual small shipments into
rail (carload) lots for forwarding by rail to a certain destination.
Once the shipments are in carload lots, the pool car operator contracts with the railway company for the
linehaul from point of origin to point of destination.
THE HISTORY OF POOL CARS
Pool car operators in Canada can be traced back to the early 1920s. At that time, manufacturing was
concentrated in a very few centres in southern Ontario and in Quebec. Trucking was in its infancy as a
local cartage service only, with no long-haul trucking available.
Pool car operators opened business in these manufacturing centres, offering shippers rail LCL (less-
than-carload) service of a single commodity, at rates substantially below the railway LCL rates. In those
early days, pool car operators had to maintain separate railcars for each commodity. However, in the
1950s, competition with truckers forced the railways to relax their regulations and today, full mixing of
commodities is allowed, with the exception of hazardous cargo.
When the railways permitted full mixing of commodities (mixed carloads) and the pool car operators
secured agreement to expand the service to Western Canada, the railways did not anticipate the
headaches that would result for them from the development of this profitable business.
The pool car operator’s focus is on small shipments since, for tariff purposes, no single shipment to
any one consignee may exceed a maximum of 50% of the total weight of any one car.
The mixed carload automatically came under the mixed carload rule of the Canadian Freight
Classification, which provided for each commodity to be charged at the class or commodity carload
rate applicable.
Another problem was that the bills of lading had to include the description of each commodity and the
applicable rate. It does not take much imagination to visualize the complexity and the time consumption
(not to mention billing errors) that arose when a couple of hundred small shipments or so were included
in one carload.
The railways eventually solved this problem by publishing a common tariff, charging the pool car
operator a rate per 100 lb, regardless of how many shipments of mixed commodities were included.
Nowadays, intermodal container is now much more commonly used than the traditional railcar by the
railways and long-haul truckers alike.
66
RATE STRUCTURES
The basic approach of pool car operators is to obtain carload rates from the railways, add their own
service charge to cover the costs of loading, unloading, delivery and clerical services, and to provide a
profit and to present the total to the shipping public. Today, this final total, generally speaking, is a
“freight all kinds” (FAK) weight scale tariff. Quite often, pick-up is not provided for in the rate and is
charged separately.
Pool car operators move under specific railway tariff authority. One of the regulations binds the operator
to move a minimum of cars for a total annual minimum revenue to the railway. If he does not meet these
minimum guarantees, then he will not be allowed the use of the special carload rates in the future. It
would mean the end of his business.
Pool car rates are generally based on weight, but also have provisions for light and bulky commodities
to be charged on cube (volume).
LIABILITY
The pool car operator is a fully responsible principal accepting liability for all shipments from the point
of pick-up to that of delivery, in the same way as any other carrier.
INTERFACING
Most international freight forwarders operating in Canada today do so in the major ports of Toronto,
Montréal, and Vancouver, with adequate representation in the smaller ports and inland centres. As a
result, they quite often experience the need for a dependable, low-cost distribution service from these
centres to the inland areas of Canada for LCL traffic. Pool car operators are thus an excellent resource,
offering:
Broad geographic coverage;

Regularly scheduled transit times resulting from the rail linehaul;
Terminals in all major cities;
Full tracing and expediting facilities;
Delivery services at point of destination; and
Minimum handling of goods, resulting from point-to-point movement in a sealed railcar.
The pool car operator is yet another “tool” for the international freight forwarder to use in creating the
complete transportation program for his own client.
67
CHAPTER 7
ROUTE DEVELOPMENT
Long before our known explorers of the seas set out on their discovery journeys, the old Egyptians,
Romans, Turks and Chinese already used overland routes to support their commercial empires.
Supplies had to get to the troops, and captured goods and items were to be returned to their
homelands. Thus, the first organized transport routes were established. Depending on the
circumstances, they became important political and/or economic means to move goods between
places.
At first, they used land routes with various types of caravans. The “Silk Route” from China across
Central Asia to Europe was one of the first major transcontinental trade routes. In Europe, overland
routes expanded across the Mediterranean by sea; same with coastal trade to the U.K. and
Baltic/Northern Europe. In Western Europe, river transportation permitted larger quantities to be
transported.
The evolution of rail transport in the 19th century quickly built up a criss-cross network of rail lines
spanning all over Europe. Railroad building also flourished in the then-colonies of Africa and North
America. Rail transport permitted access far inland to bring back all sorts of raw material to the ports.
Although railroads have lost much of the general-freight-carrying business to semi-trailer trucks, they
remain the best means of transporting large volumes of such bulk commodities as coal, grain,
chemicals and ore over long distances. The development of containerization has made the railroads
more effective in handling finished merchandise at relatively high speeds. In addition, the introduction
of piggyback flatcars has allowed railroads to regain some of the business lost to trucking.
The Canadian Pacific Railway line, completed in 1885, became a major coast-to-coast transport and
travel route, bringing the vast country rapidly closer together. It wasn’t until 1959 that the opening of the
St. Lawrence Seaway System allowed ocean vessels to continue travelling into the Great Lakes and the
heart of the country.
With the U.S. being Canada’s largest trading partner, most of the goods between the two countries are
transported by either rail or truck. Since the creation of NAFTA (now CUSMA - the Canada-United
States-Mexico Agreement), Mexico is included in this trade route. Only a relatively small amount of
cargo is carried by sea via either Canadian east or west coast ports between Canada and Mexico.
In connection with international rail transportation, it is important to note the significance of the following
organizations:
OTIF
The Intergovernmental Organization for International Carriage by Rail (OTIF) was set up in 1985 to
govern international carriage of passengers (CIV/SMPS Conventions) and freight (CIM/SMGS
Conventions) by rail, with 50 member states at the present time (in Europe, Asia and North Africa).
OTIF’s main objectives are to further develop rail transport laws in several areas, to work toward a
future single legal regime from the Atlantic to the Pacific, to remove obstacles in crossing international
frontiers, and to prepare other international rail transport conventions. To learn more on OTIF, visit
www.otif.org.
68
Freight Traffic CIM/SMGS
Source: www.cit-rail.org
UIC
The International Union of Railways (UIC) is the worldwide international organization of the railway
sector. With around 200 members across five continents, the UIC’s main tasks are to harmonize and
improve conditions for railway construction and operations, facilitate the sharing of best practices
among members, propose new ways to improve technical and environmental performance, promote
interoperability, create new world standards for railways, and develop centres of competence. To learn
more about UIC, visit www.uic.org.
67
CHAPTER 7
ROUTE DEVELOPMENT
Long before our known explorers of the seas set out on their discovery journeys, the old Egyptians,
Romans, Turks and Chinese already used overland routes to support their commercial empires.
Supplies had to get to the troops, and captured goods and items were to be returned to their
homelands. Thus, the first organized transport routes were established. Depending on the
circumstances, they became important political and/or economic means to move goods between
places.
At first, they used land routes with various types of caravans. The “Silk Route” from China across
Central Asia to Europe was one of the first major transcontinental trade routes. In Europe, overland
routes expanded across the Mediterranean by sea; same with coastal trade to the U.K. and
Baltic/Northern Europe. In Western Europe, river transportation permitted larger quantities to be
transported.
The evolution of rail transport in the 19th century quickly built up a criss-cross network of rail lines
spanning all over Europe. Railroad building also flourished in the then-colonies of Africa and North
America. Rail transport permitted access far inland to bring back all sorts of raw material to the ports.
Although railroads have lost much of the general-freight-carrying business to semi-trailer trucks, they
remain the best means of transporting large volumes of such bulk commodities as coal, grain,
chemicals and ore over long distances. The development of containerization has made the railroads
more effective in handling finished merchandise at relatively high speeds. In addition, the introduction
of piggyback flatcars has allowed railroads to regain some of the business lost to trucking.
The Canadian Pacific Railway line, completed in 1885, became a major coast-to-coast transport and
travel route, bringing the vast country rapidly closer together. It wasn’t until 1959 that the opening of the
St. Lawrence Seaway System allowed ocean vessels to continue travelling into the Great Lakes and the
heart of the country.
With the U.S. being Canada’s largest trading partner, most of the goods between the two countries are
transported by either rail or truck. Since the creation of NAFTA (now CUSMA - the Canada-United
States-Mexico Agreement), Mexico is included in this trade route. Only a relatively small amount of
cargo is carried by sea via either Canadian east or west coast ports between Canada and Mexico.
In connection with international rail transportation, it is important to note the significance of the following
organizations:
OTIF
The Intergovernmental Organization for International Carriage by Rail (OTIF) was set up in 1985 to
govern international carriage of passengers (CIV/SMPS Conventions) and freight (CIM/SMGS
Conventions) by rail, with 50 member states at the present time (in Europe, Asia and North Africa).
OTIF’s main objectives are to further develop rail transport laws in several areas, to work toward a
future single legal regime from the Atlantic to the Pacific, to remove obstacles in crossing international
frontiers, and to prepare other international rail transport conventions. To learn more on OTIF, visit
www.otif.org.
68
Freight Traffic CIM/SMGS
Source: www.cit-rail.org
UIC
The International Union of Railways (UIC) is the worldwide international organization of the railway
sector. With around 200 members across five continents, the UIC’s main tasks are to harmonize and
improve conditions for railway construction and operations, facilitate the sharing of best practices
among members, propose new ways to improve technical and environmental performance, promote
interoperability, create new world standards for railways, and develop centres of competence. To learn
more about UIC, visit www.uic.org.
INFRASTRUCTURE OF COUNTRIES AROUND THE WORLD
We will briefly look at the infrastructure in all regions of the world, at this point mainly with respect to land
transportation by rail and truck, to have a better understanding of the level of development in this area
and its significance for international trade. Routes by truck in the CUSMA region will be described in
more detail later in this section. This section, particularly its maps, will be a useful reference for you
when learning about air and ocean transport modes. If there is a mention of ports in the region in this
section, it is with respect to the connectivity to rail service.
NORTH AMERICA
Canada
As previously mentioned, 90 percent of Canada’s population is concentrated along our southern border
with the United States. The rest of the country (northern part) is very sparsely populated. The two major
railway lines (Canadian Pacific and Canadian National) maintain an excellent coast-to-coast rail
connection. In the east, Newfoundland no longer has a railroad, but is connected by a year-round
government-operated ferry service that carries passengers, automobiles and tractors/trailers to/from
Nova Scotia. Hay River, NWT has a rail line from Alberta to connect to the summer navigation barge
service from Hay River north on the Mackenzie River to the Arctic shoreline (Tuktoyaktuk). Primarily
large quantities of fuel and other supplies are transported, which otherwise can only be flown into many
of these communities.
The majority of Canada’s ports are jointly served by CN and CPR, as are such major centres as
Vancouver, Edmonton, Calgary, Winnipeg, Toronto, Montréal, and Halifax.
69
Canadian Pacific Railway

The Canadian Pacific Railway Company was incorporated in 1881, to link Canada’s populated centres
with the vast potential of its relatively unpopulated west. 1882 marked its entry into the express
shipment business. The railway was completed on November 7, 1885. By 1889, the railway extended
from coast to coast and the enterprise had expanded to include a wide range of related and unrelated
businesses. Growth after World War II and in the 1950s has led to CPR’s 14,000-mile network
extending from the Port of Vancouver in Canada’s west to the Port of Montréal in the east, and to the
U.S. industrial centres of Chicago, Newark, Philadelphia, Washington, New York City and Buffalo.10
CPR offers international/intermodal services from ports in Vancouver, Montréal, New York and
Philadelphia and to inland points across Canada and the U.S. CP has 10 intermodal terminals as
illustrated below.
Source: www.cpr.ca/en/choose-rail/intermodal-shipping
CPR Train Moving through Rogers Pass, B.C. over the Stoney Creek Bridge
Source: David Spencer; www.scenic-railroads.com

70
Canadian National Railway

In 1832, the Champlain and St. Lawrence Railroad was incorporated; in 1836, it began operation from
Laprairie, QC to Saint John, NB. Its first train ran between Toronto and Aurora, ON, in 1853. In 1903,
after the National Transcontinental Railway Act was passed, the first “Ocean Limited” passenger train
ran between Montréal, QC and Halifax, NS. This was the longest running train in Canada. The Canadian
Northern Ontario Railway was incorporated in 1906. Currently, CN has approximately 20,600 route miles
and track in North America, offering rail connections to 33 posts. CN spans Canada and mid-America
from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver and Prince
Rupert, BC, Montréal, QC, Halifax, NS, New Orleans, LA and Mobile, AL, and the key cities of Toronto,
ON, Buffalo, NY, Chicago, IL, Detroit, MI, Duluth, Superior and Green Bay, WI, Minneapolis and St. Paul,
MN, Memphis, TN, St. Louis, MO, and Jackson, MS, with connections to all points in North America, as
illustrated in the system map below.
Source: www.cn.ca/en/our-business/our-network/maps
To keep up to date on developments for both, the Canadian National Railway and the Canadian Pacific
Railway, visit their respective websites, www.cn.ca and www.cpr.ca. In addition, look for information in
periodicals, such as CN Moving, Transportation Business, The Journal of Commerce and Canada’s
national newspapers.
71
The Smaller “Independent” Railways

In Canada, there are many independent railways. They are often referred to as “shortlines.” While many
smaller railways went bankrupt after WWII, some remained solvent.
Despite their relatively small size, these railways are still very important to the country, servicing regional
needs. They are, in many cases, the “resource railways” serving Northern Canada and, as Canada’s
wealth is in its natural resources, these rail arteries enable Canada’s economic lifeblood to flow
southward, for either domestic consumption or overseas export. They could be considered feeder
railways to CN and CP, operating independently from them.
The list of shortline railways is immense and too long to include here. A list is available on Wikipedia, at
http://en.wikipedia.orq/wiki/List_of_Canadian_railways.
Since the North American Free Trade Agreement came into force in 1994, Canada’s exports to and
imports from the United States have significantly grown. Opening the doors to Mexican manufacturers
forced Canadian industries to become more competitive. As most cargo transported within North
America is carried by either truck or rail, we will pay particular attention to infrastructure for this trade, for
rail below and road later in this section.
The following chart illustrates North American freight in February 2020, by transportation mode, in
billions of dollars.
Source: U.S. Department of Transportation

U.S.A.
The country is criss-crossed with an immense railroad system. The Mississippi River and its adjacent
rivers and canals allow waterborne bulk shipping from the centre of the country between the Great
Lakes and the Gulf of Mexico. The Ohio River connects the country’s steel town of Pittsburgh, Pa. with
the Mississippi. In the west, the high Rocky Mountain Range does not obstruct east-west rail or highway
transport flow. The Hawaiian Islands and Puerto Rico in the Caribbean (U.S. Territory) and isolated
Alaska are connected by regular ocean service from the mainland. According to the U.S. Department of
Transportation, almost 40% of freight in the U.S. is transported by rail. The U.S. rail network consists of
140,000 rail miles operated by seven Class I railroads, 21 regional railroads and 510 local railroads.
The Class I railroads are as follows: BNSF Railway, CSX Transportation, Grand Trunk Corporation,
Kansas City Southern Railway, Norfolk Southern Combined Railroad Subsidiaries, Soo Line Railroad
and Union Pacific Railroad. These railroads are private organizations and, as such, are responsible for
their own maintenance and improvement projects. This activity falls under the Federal Railroad
Administration (FRA) of the U.S. Department of Transportation and was partially deregulated in 1980
with the Staggers Rail Act. Carriers are represented by the Association of American Railroads.
Staggers Rail Act.
72
The U.S. Freight Rail Network
Source: Association of American Railroads

Mexico
Mexico lies between the U.S. and Central America, with the Pacific Ocean in the west and the Gulf of
Mexico in the east. Mexico has one of the largest economies in the world. Its transport system has
some institutional components that are very modern and others that have changed little in 30 years.
In 1998, Mexico privatized its national railway company, Ferrocarriles Nacionales de México (FNM), and
after several years of ownership changes and adjustments, three large entities emerged: Kansas City
Southern de México (KCSM), owned by Kansas City Railway, operating in the north, in particular to/from
the port of Lazaro Cardenas; Ferrocarril Mexicano (Ferromex), a joint venture between Grupo Mexico
and Union Pacific Railroad, operating in the west, in particular to/from the port of Manzanillo; Ferrocarril
del Sureste (Ferrosur), now owned by Grupo Mexico, operating in the south and linking Mexico City with
the port of Vera Cruz. These three railways jointly own Ferrocarril y Terminal del Valle de México
(Ferrovalle), which operates railroads and terminals in and around Mexico City. As most railway lines are
currently run by private operators, this places Mexico amongst a number of nations, including Argentina,
the United Kingdom and Brazil, that have concessioned national rail networks to the private sector.
Rail services from Canada to Mexico are available from both CN and CP Rail, which also offer
intermodal services. The following are border points in the United States from which rail shipments can
cross into Mexico: Ciudad Juarez/El Paso, Del Rio/Acuna, Matamoros/Brownsville, Mexicali/Calexico,
Nogales/Nogales, Nuevo Laredo/Laredo, Piedras Negras/Eagle Pass, Reynosa/Hidalgo, San
Jeronimo/San Teresa, Tijuana/San Yisidro. The primary crossings are Nuevo Laredo/Laredo, Piedras
Negras/Eagle Pass and Ciudad Juarez/El Paso. The preference of CN and CP is still to move goods to
major interchange centres in the United States for final shipment to the American border crossing point
(e.g., Laredo) and then into Mexico. Montréal/Toronto movements by rail to Mexico connect primarily via
Detroit, and Vancouver/Calgary movements through Chicago. Transit times, largely depending on the
city of origin, are between 6 and 10 days.
73
Map of the Mexican Railway System
Source: Union Pacific de Mexico
The Mexican government has applied certain restrictions to all shipping lines in the Mexican market with
respect to weight. For a 20-ft dry container, the cargo weight should not exceed 23 metric tons and, for
a 40-ft dry container, the cargo weight should not exceed container payload. Rail companies might
accept higher cargo weight in a 20-ft container, without exceeding the container payload, but only
subject to a surcharge over the basic rate.11
CENTRAL AMERICA
Central America is the relatively narrow land mass with seven countries (Guatemala, Honduras,
Nicaragua, Costa Rica, Panama, Belize and El Salvador) connecting North and South America.
Highways are limited and no rail network exists. There is no through road between Panama and
Colombia, thus no road connection between Central and South America.
The West Indies (Caribbean)

The name West Indies comes from Christopher Columbus, who believed, when he landed here in
1492, that he had reached the Indies (in Asia). The Caribbean region is made up of some 27 territories
including sovereign states, overseas departments and dependencies. Most of the islands have rugged,
towering mountain ranges made up of volcanic ash with some volcanoes still active today. Some
islands have relatively flat terrain of non-volcanic origin. With the exceptions of Cuba and Jamaica, there
are no railroads on any of the islands. Roads are generally narrow and winding. The island of Hispaniola
is shared by two countries, Dominican Republic (eastern half) and Haiti (western half). The small island
of Saint Martin is also shared by France (Saint Martin) and the Dutch (Sint-Maarten). The region is
generally divided into the Greater Antilles and Lesser Antilles.
74
SOUTH AMERICA
South America is physically split by the Andes, a high mountain range running in a north-south direction
along the extreme western part of the continent. A total of 13 countries make up the continent.
Geographically, especially in international shipping terms, South America is divided into three basic
regions:
North Coast (Caribbean South America): Colombia, Venezuela, Guyana, Suriname and French
Guiana.
East Coast (Atlantic side): Brazil, Uruguay, Paraguay, Argentina.
West Coast (Pacific side): Colombia, Ecuador, Peru, Bolivia and Chile.
Some countries have excellent roads and highways, including railways, while others have only a limited
network of roads. Guyana, Suriname and French Guiana have no railways at all. Paraguay no longer has
a commercial rail line. Paraguay is a landlocked country, but with good roads and commercial river
access to Argentina. Bolivia, also landlocked, has Pacific rail and road access via the port of Arica
(northern Chile). The railroad from Arica climbs across the Andes mountains at 4,265 m (13,993 ft)
elevation above sea level. There is also a small rail line from the east to Brazil and south to Argentina.
Roads south to Argentina form another good infrastructure for Bolivia. Chile is a country wedged
between the Pacific Ocean and the Andes mountains to the east, about 4,300 km long and only 175 km
wide. A railroad and good highway connect the country from north to south. Colombia, in the northwest
part of the continent, is the only country that borders the Pacific Ocean and the Caribbean Sea.
75
Map Copyright © 1999 by World Trade Press. All Right Reserved.

EUROPE
Europe comprises the westernmost part of the Eurasian landmass and is generally divided from Asia to
the east by the Ural Mountains in Russia, the Caspian Sea, the Caucasus region and the Black Sea to
the southeast. Europe is bordered by the Arctic Ocean in the north, the Atlantic Ocean to the west,
including Iceland (though it is nearer Greenland than mainland Europe), the Mediterranean Sea to the
south, and the Black Sea to the southeast.
In this book, Europe has been divided over two map regions: Europe and the Mediterranean. Many
consider the physical boundary between these regions to be the Pyrenees mountain range (between
France and Spain) and the Alps (stretching west to east from France to Austria).
Additionally, in transportation geography, Europe is divided into the following regions:
Northern Europe: the Scandinavian countries of Denmark, Norway, Sweden and Finland, as well as
Iceland.
76
Western Europe: the United Kingdom, Ireland, the Benelux countries of the Netherlands, Belgium and
Luxembourg, Germany, France, Monaco, Austria and Switzerland.
Central Europe: Poland, the Czech Republic (Czechia), Slovakia and Hungary.
Eastern Europe: the Baltic States of Estonia, Latvia and Lithuania, Belarus, Ukraine, Moldova, Bulgaria,
Romania and western (European) Russia.
Southern Europe (Mediterranean): Portugal, Andorra, Spain, Italy, Greece and Turkey.
A small portion of Turkey lies in Europe, while the majority of the country is across the Bosporus Strait
on the Asian continent. For the purpose of this section, we consider all of Turkey to be a European
country. The Balkan countries, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Albania and
Macedonia, are considered by most part of southern Europe. In the extreme southeastern corner of
Europe (between the Black Sea and the Caspian Sea) lie the Caucasus countries of Georgia,
Azerbaijan and Armenia.
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All of western Europe has an excellent highway and secondary road system. The less-dense and
lower-quality highway system in formerly communist countries of eastern Europe is rapidly catching up
to western European standards.
Since about the middle of the 19th century, all European nations have built a vast rail network
connecting each other via their land borders. The “Chunnel” railroad tunnel between France and the
United Kingdom now also connects the U.K. with mainland Europe. A cargo rail ferry with the wider
Russian track gauge exists between Lithuania and the Island of Rugen (formerly East Germany) and
another one across the Caspian Sea between Baku (Azerbaijan) and Turkembashi (Turkmenistan).
Most of the western European rail lines have been electrified since the 1960s. Today, many high-speed
lines are running in an almost straight line through tunnels and over bridges with very gentle turns and
little gradients on them.
To compete with road transport, the rail lines operate a network of container “block trains” from various
port cities to the hinterland including the landlocked countries of central Europe. A number of
north/south rail lines cross the Alps through tunnels.
The Russian rail gauge is wider than the standard European gauge. Cargo has to be transferred from
one railcar to another at special transit stations. Brest (Belarus), at the Polish border, is the main
crossing station in Europe. Some special passenger through trains between western Europe and
Moscow and St. Petersburg are equipped to change their bogies (undercarriages) at this border and
continue on the other side. Such bogie transfer does not apply to cargo trains. Finland’s railway network
is connected only with the Russian rail system; thus, it also has the wider tracks like Russia. There is no
rail connection between Finland and the rest of Europe.
During the last 30 years, the European Commission has been very active in restructuring the European
rail transport market. Its efforts have concentrated on three major areas: (1) opening of the rail transport
market to competition, (2) improving the interoperability and safety of national networks, and (3)
developing rail transport infrastructure.
To encourage more market competition on the freight side, the two giants, Deutsche Bahn (DB) in
Germany and Société Nationale des Chemins de Fer Français (SNCF) in France, and other state-
owned, national companies, now
78
have competition from private operators. These private operators are represented by the European
Rail Freight Association, or ERFA, headquartered in Brussels: www.erfarail.eu
Regarding infrastructure development, the European Commission has identified the following nine
“Core Network Corridors” to remove bottlenecks, build missing cross-border connections and promote
modal integration and interoperability:
1. The Scandinavian-Mediterranean Corridor is a crucial north-south axis for the European

economy. Crossing the Baltic Sea from Finland to Sweden and passing through Germany, the Alps and
Italy, it links the major urban centres and ports of Scandinavia and northern Germany to continue to the
industrialized high-production centres of southern Germany, Austria and northern Italy, further to the
Italian ports and Valletta.
2. The North Sea-Baltic Corridor connects the ports of the eastern shore of the Baltic Sea with the
ports of the North Sea. The corridor will connect Finland with Estonia by ferry, provide modern road and
rail transport links between the three Baltic States, on the one hand, and Poland, Germany, the
Netherlands and Belgium on the other. Between the Odra River and German, Dutch and Flemish ports,
it also includes inland waterways, such as the Mittelland-Canal.
3. The North Sea-Mediterranean Corridor stretches from Ireland and the north of the U.K. through
the Netherlands, Belgium and Luxembourg to the Mediterranean Sea in the south of France. This
multimodal corridor, comprising inland waterways in Benelux and France, aims not only at offering
better multimodal services between the North Sea ports, the Maas, Rhine, Scheldt, Seine, Saone and
Rhone river basins and the ports of Fos-sur-Mer and Marseille, but also at better interconnecting the
British Isles with continental Europe.
4. The Baltic-Adriatic Corridor is one of the most important trans-European road and railway axes. It
connects the Baltic with the Adriatic Sea, through industrialized areas between southern Poland (Upper
Silesia), Vienna and Bratislava, the eastern Alpine region and northern Italy.
5. The Orient/East-Med Corridor connects the maritime interfaces of the North, Baltic, Black and
Mediterranean Seas, enabling the optimization of the use of the ports concerned. Including the Elbe as
inland waterway, it will improve the multimodal connections between northern Germany, the Czech
Republic (Czechia), the Pannonian region and southeast Europe.
6. The Rhine-Alpine Corridor constitutes one of the busiest freight routes of Europe, connecting the
North Sea ports of Rotterdam and Antwerp to the Mediterranean basin in Genoa, via Switzerland and
some of the major economic centres in the Rhein-Ruhr and the Rhein-Main-Neckar regions and the
agglomeration of Milan in northern Italy. This multimodal corridor includes the Rhine as an inland
waterway.
7. The Atlantic Corridor links the Western part of the Iberian Peninsula and the ports of Le Havre and
Rouen to Paris and further to Mannheim/Strasbourg, with high-speed rail lines and parallel conventional
ones, including also the Seine as an inland waterway.
8. The Rhine-Danube Corridor, with the Main and Danube waterway as its backbone, connects the
central regions around Strasbourg and Frankfurt via southern Germany to Vienna, Bratislava, Budapest
and finally the Black Sea, with an important branch from Munich to Prague, Zilina, Kosice and the
Ukrainian border.
9. The Mediterranean Corridor links the Iberian Peninsula with the Hungarian-Ukrainian border. It
follows the Mediterranean coastlines of Spain and France, crosses the Alps towards the east through
northern Italy, leaving the Adriatic coast in Slovenia and Croatia towards Hungary. Apart from the Po
River and some other canals in northern Italy, it consists of road and rail.
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Europe’s Rail Freight Corridors
Source: The European Commission
The following chart covers only intra-EU transport and excludes extra-EU transport, to illustrate the
modal split of freight transport in 2013 and 2018.
Source: Eurostat
THE MIDDLE EAST
The Middle East is mainly a desert and arid region stretching from the Mediterranean Sea in the west to
the Persian Gulf in the east and from the Red Sea and Sudan in the south-east, with Turkey being the
northern border. The African Mediterranean countries of Morocco, Algeria, Tunisia and Egypt are also
considered part of the Middle East, as is Sudan, although it is also in Africa on the west shores of the
Red Sea. All countries have limited highways and a few have some railway network.
In shipping terms, the Middle East is divided into the following geographical regions:
North Africa: Morocco, Algeria, Tunisia and Libya.

Eastern Mediterranean: Egypt, Israel, Jordan, Lebanon, Syria and Turkey.
Gulf Countries: Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Iran.
Some also include Afghanistan and Pakistan in the Middle East.

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THE MIDDLE EAST
The Middle East is mainly a desert and arid region stretching from the Mediterranean Sea in the west to
the Persian Gulf in the east and from the Red Sea and Sudan in the south-east, with Turkey being the
northern border. The African Mediterranean countries of Morocco, Algeria, Tunisia and Egypt are also
considered part of the Middle East, as is Sudan, although it is also in Africa on the west shores of the
Red Sea. All countries have limited highways and a few have some railway network.
In shipping terms, the Middle East is divided into the following geographical regions:
North Africa: Morocco, Algeria, Tunisia and Libya.

Eastern Mediterranean: Egypt, Israel, Jordan, Lebanon, Syria and Turkey.
Gulf Countries: Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Iran.
Some also include Afghanistan and Pakistan in the Middle East.

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AFRICA
The continent is divided into several large general regions:
North Africa: Mediterranean coastline countries: good coastal road network, no rail lines. Algeria and
Libya have limited paved roads south into the Sahara Desert. No road connection north-south through
the Sahara Desert (only ancient caravan tracks).
West Africa: Mauritania to Nigeria range (includes landlocked Sahara countries of Mali, Burkina Faso
and Niger). Mainly only road access from the coast inward. Limited road network; some rail lines, but
poorly maintained.
Central Africa: Chad, Central African Republic and Democratic Republic of Congo (former Zaire).
Limited road access from the coast inwards. No rail lines. Some limited river transportation on the Congo
River upstream from Kinshasa to Kisangani. The southern DRC is only road accessible from Zambia.
Eastern DRC is road accessible from Uganda and Tanzania (via East African ports of Mombasa and
Tanzania). No east-west road connection in DRC. Central African Republic is best accessible by road via
Cameroon. Chad is best reached by road via Nigeria.
East Africa: although Sudan is deemed by many to be part of the Middle East (and is included in the
Middle East in this book), Ethiopia, Eritrea, Somalia, Kenya, Tanzania, Uganda, Rwanda and Burundi are
considered East Africa. While Ethiopia formerly had a port in Assab, it is, since the creation of Eritrea,
landlocked, and now needs to transit through that country. A road and poor railway connect Addis Ababa
with Djibouti on the Gulf of Aden as the only other land alternative.
Southern Africa: Angola, Namibia, Zambia, Zimbabwe, Malawi, Mozambique, Botswana and South
Africa (including landlocked Swaziland). Angola has a limited and very poor road system from the coastal
towns inward. The old Benguela rail line was destroyed by war, leaving the country with no railway.
Namibia has very few roads into the desert hinterland. No rail lines. Zambia (landlocked) is road
accessible from South Africa (via Zimbabwe), and from East Africa via the port of Dar Es Salaam,
Tanzania. A somewhat-functioning rail line (capable of moving containers as well) from South Africa and
Tanzania also exists. Malawi has road connections via Tanzania, Zambia, Zimbabwe and the port of
Beira (Mozambique). Zimbabwe has road and rail connections to South Africa and Beira. South Africa
has a very good road and rail system. The port of Durban is the main entry port for Johannesburg and
the road and rail gateway north into Zimbabwe, Zambia and the southern part of the DRC (Copper Belt)
adjacent to northern Zambia. Botswana (landlocked) has rail and road access via South Africa. There are
no rail lines in Madagascar and only a few roads.
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Map Copyright © 1999 by World Trade Press. All Right Reserved.

90
CHAPTER 8
RAIL RATES AND BOOKING CARGO WITH A RAIL
CARRIER
This section does not cover the shipment of ocean containers by rail, as this activity is arranged directly
between the railways and the ocean carriers, with the ocean carrier issuing multimodal, through bills of
lading, covering both the ocean and the rail portions of the movement. For example, when an export
container is shipped from Toronto via Vancouver to Shanghai or an import container is shipped from
Hamburg via Montreal to Winnipeg, the freight forwarder does not usually get involved in the rail
movement.
Generally, products moving by rail are commodities shipped in large volumes like grain, coal, fertilizer,
forest products, sulfur, chemicals, minerals, metal, steel and energy products. More and more time-
sensitive consumer products move via intermodal rail transport, a truck-like service offered by the
railways that combines the flexibility of trucks with the cost savings of rail over long distances.
Railways today provide tools giving customers instant access to the information needed to manage
their shipments, including getting quotes, ordering railcars, sending electronic shipping instructions and
tracking shipments. Because they are large organizations, it is recommended that you initially make
contact with an account manager, who will organize the set-up of your account. Establishing your credit
is part of this process.
Before moving goods, customers need to select the service required, as follows:
Pure rail service, when large quantities are involved and both the shipper and the consignee have their
own rail siding;
Transloading, when only the shipper has a rail siding and goods will be transloaded from railcar to road
trailer at the destination terminal for final delivery, or
Intermodal, when the local pick-up and delivery are done by road trailer and the trailer then moves by rail
from the origin to the destination terminals.
Note: In order to move cargo “door to door,” the railway needs to be able to bring the railcars right to
the customer’s door so, if it is possible, the customer must have its own private rail siding - a track or a
set of tracks that do not belong to the railway company but are linked up with the track of the railway
company so that an industrial or commercial company can be served by rail without rehandling the
cargo.
The next step is to request a quote based on the type of service required, origin and destination,
equipment needed, time frame, volume, commodity and class, cargo specifications (type of packaging,
weights and sizes), perishability, risk of damage and other relevant details. Rail rates are generally
expressed in lump sum per railcar, with ancillary charges and surcharges for fuel, currency, demurrage
and switching. The railways’ terms and conditions, as well as their general tariffs (sometimes called
class tariffs), are usually publicly available, but most customers negotiate individual rates specific to
their needs and these are confidential. They also have specific rules and regulations for cargo loading,
securing and damage prevention, as part of their high safety standards and policies. Internal dedicated
teams are usually available for consultation, and shipping guides are available online. For some specific
industries and commodities, for example grain or chemicals, railcars may be owned by shippers.
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An Excerpt from CPR’s Tariff

FOREST PRODUCTS REVISION 23
TARIFF CPRS 0030 ISSUED 19-Oct-20
ITEM 00700 EFFECTIVE 20-Oct-20
EXPIRY 30-Sep-21
I: Rate Increase
R: Rate Reduction
N: New Rate
Route: CPRS
Origin Zone Destination Rate Currency

Zone
Vancouver Area Vancouver $ 3,663 CAD

Area
Vancouver Area BC North Line $ 5,433 CAD
Vancouver Area BC South $ 8,574 CAD

Line
Vancouver Area BC North- $ 6,328 CAD

South Line
Vancouver Area Golden- $ 6,556 CAD

Calgary
Vancouver Area South of $ 7,170 CAD

Calgary
Vancouver Area Calgary- $ 7,558 CAD

Edmonton
Vancouver Area Edmonton $ 7,655 CAD
Vancouver Area Calgary $ 5,400 CAD
Vancouver Area Edmonton- $ 7,781 CAD

Saskatoon
Vancouver Area Calgary- $ 7,274 CAD

Regina
Vancouver Area Saskatoon $ 7,954 CAD
Vancouver Area Regina $ 9,547 CAD
Vancouver Area Regina-Portal $ 10,091 CAD
Vancouver Area Saskatoon $ 8,663 CAD

East
Source: www.cpr.ca
Once the initial set-up is done, communications are done electronically; and the use of EDI is strongly
encouraged to transmit bill of lading information, notification of equipment release and/or the bill of
lading covering the shipment.
There are no international conventions governing carriage of freight by rail, such as, for example, the
Montréal Convention for air freight or the Hague-Visby Rules for ocean freight, to define the limits of
liability of rail carriers. The Canada Transportation Act defines the common carrier obligations of
railways. It includes the Railway Third Party Liability Insurance Coverage Regulations, dealing with third-
party liability insurance requirements. With respect to cargo valuation and carrier limits of liability, there
is no general rule and they are defined by private arrangement in each contract. The law spells out that
the amount of loss or damage to goods for which a carrier will be liable will be the lesser of the
following:
The value represented in writing by the shipper, or

The value agreed to by the carrier and the shipper, or
The value determined in accordance with the tariff classification of the goods on which the rate is based.
Contrary to other modes of transport, rail transport does require a lot of dialogue prior to making the
actual transport arrangements. Once the fundamentals as indicated earlier are established, the
respective railcar or railcars must then be ordered and placed at the freight forwarder’s disposal where
and when required.
The railcar(s) and location are then identified by the railway and confirmed to the freight forwarder who,
in turn, must arrange for payment.
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CHAPTER 9
DOCUMENTATION
To complete the shipment execution process, every shipment requires three types of documentation
as follows:
1. Transportation documentation;
2. Commercial documentation, and
3. Financial documentation.
We deal with commercial and financial documents in detail in the Essentials of Freight Forwarding
course; however, to preserve the continuity of information, we will now briefly list the main commercial
and financial documents used and their purpose. The primary focus in this textbook will be on
transportation documentation.
Commercial Documentation
The freight forwarder needs to be aware of the import documentation required in the country of
destination, e.g., by an overseas agent, and advise the customer accordingly. The commercial
documents required for exports are generally prepared in the country of export and are as follows:
The packing list is a detailed list of contents of the shipment that is essential as a supporting document in
case of a possible insurance claim.
A pro-forma invoice is sometimes required to confirm the order before shipping and to enable the
purchaser to apply for an import licence or a letter of credit.
The commercial invoice documents what the buyer must pay the seller and provides information to the
countries of export, import and transit.
The certificate of origin certifies the origin of the merchandise.
Depending on the agreement between the seller and buyer or any special circumstances, additional
documents may be required, like a certificate of free sale (for pharmaceuticals) or a weight certificate
(for goods sold by the weight).
There are also documents required for Customs clearance, i.e., the export declaration (not required for
exports to the U.S. unless the goods are controlled, prohibited or regulated), the Customs bond, the
Customs entry (form B3 in Canada and form CBP7501 in the U.S.), the export/import permits, the AT.A.
carnet, the consular invoices, the certificate of inspection, the certificate of analysis, as required by
either or both, the country of import and the country of export.
Financial Documentation
Depending on the terms of the contract between the seller and the buyer and the method of payment
agreed to (e.g., open account, advance payment, documentary credit or documentary collections),
various financial documents are required, like the letter of credit advice and confirmation (if applicable),
the draft, the promissory note, the bill of exchange, as required by financial institutions. In essence, the
commercial invoice is also a financial document, as it is the document against which the buyer and/or
the bank will issue the payment.
Transportation Documentation
The main document here is the bill of lading issued by the carrier (for this section it is the rail bill of
lading, for trucking it is the truck bill of lading, the ocean bill of lading for ocean freight, multimodal bill of
lading covering the whole voyage e.g., via marine and rail modes, and the air waybill for air freight).
These serve as the receipt for the goods, a contract of carriage and, in some cases, for ocean freight,
a transferable title of ownership.
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Other transportation documents that can be issued by carriers, freight forwarders and other relevant
parties during the course of the voyage include:
Booking confirmation: issued by carriers to confirm the arrangements made ahead of the shipment.
Dock receipt: confirmation receipt of goods at a dock or a warehouse.
Transit documents (forms A8A in Canada, T&E in the U.S., T1 in Europe): to allow shipments to move in
bond beyond the Customs port/airport/terminal/border crossing of first arrival.
Advice note: carriers issue this on arrival at destination to notify the consignee and for Customs
clearance.
Although Mexico is part of the CUSMA and, as far as documentation is concerned, the usual
requirements apply, there are two significant differences compared with shipping to the United States:
1. Mexico applies the ISPM15 rules for wood packaging materials (WPM), so ISPM15-compliant WPM must
be used when shipping to Mexico (unlike shipping to the United States, with which we have an exception
from this requirement); and
2. A Canadian export declaration must be filed prior to export. This is not necessary when shipping to the
United States.
Regarding the value for Customs, Mexico uses the FOB value for the CUSMA products and the CIF
value for non-CUSMA products.
The following is a sample rail bill of lading created according to a sample Canadian Pacific Railway
company’s bill of lading, followed by instructions on its proper completion.
94
95
Preparing a proper bill of lading, especially for transborder shipping, requires numerous documentation
steps that must be performed according to specific standards set by Customs and other government
agencies as well as a careful attention to detail. The bill of lading must be filed electronically and must
be easy to read, accurate, complete and up to date to prevent delays, fines or penalties. Most delays
occur because some information was not provided on the bill of lading and therefore is not on the
Customs documentation.
The following are some instructions and tips to help complete a simple bill of lading. The numbers refer
to the numbers in the sample bill of lading provided.
1. Equipment Initial/Number:
Indicate the identification number on the transportation container, trailer or railcar.
2. Bill of Lading#/Shipment ID:
This is automatically generated by the railway company. It is advisable to double check for accuracy.
3. Loaded or Empty:
Indicate if the transportation unit is loaded or empty.
4. Origin:
Indicate the origin city, province or state.
5. Destination:
Indicate the destination city, province or state.
6. Routing:
Specify route, railways and interchange cities where the unit will move, if other than this Railway
Company.
7. Receiver/Consignee:
Indicate the company name, complete address, phone number and a contact person of the ultimate
receiver of goods.
8. Shipper/Consignor:
Indicate the company name, complete address, phone number and a contact person of the shipper of
goods.
9. Bill Freight Charges to:
Indicate the party paying the freight charges.
10. Prepaid or Collect:
Indicate the method of payment.
11. Rule 11:
Specify whether this is a Rule 11 shipment. Rule 11 is the rail industry regulation governing interline
shipments with one tender and multiple provider invoices. In a Rule 11 shipment, the customer tenders
the shipment to an originating rail carrier on a through bill of lading, and each of the carriers submit
invoices for their work. Depending on the terms of the contract, the shipper receives the invoices or one
of the invoices is sent to the consignee.13
12. STCC#:
Standardized Transportation Commodity Code Number. The STCC (in the U.S.) and STCG (in Canada)
consists of a blend of transportation characteristics, commodity similarities, and industry considerations
and is designed to create statistically significant categories. It is a structured list that is defined according
to the Harmonized Commodity Description and Coding System (HS) at its less-detailed level.
13. Harmonized System Code:
Indicate the numerical code for the commodity shipped from the Customs Harmonized Tariff.
14. Seal#:
Indicate the number on the seal on transportation unit.
15. Piece Count:
Indicate the number of packages.
96
16. Pkg. Type:
Indicate if goods packed in cartons or on pallets.
17. Commodity Description:
Provide detailed description of commodity. Descriptions, such as “FAK” (Freight of All Kinds),
“chemicals,” “household goods,” “sporting goods,” are not sufficient. Customs agencies advise that
shippers should use terms that can be easily understood by an average person, such as “ski boots,”
“tennis racket,” instead of “sporting goods.” Note: There is no specific form for transportation of
dangerous goods by rail, but details relating to dangerous goods must be indicated on the bill of lading.
18. Weight kg/lb/Agreement#:
Indicate weight of goods shipped. If the shipper is a weight agreement customer, the weight agreement
number is required. Note: A weight agreement customer means that the freight costs are computed
based on the weight of the shipment (per 100 lb or cwt) as opposed to a lump sum price for the voyage.
Regulations in the U.S. hold shippers responsible for adherence to the U.S. Intermodal Weight
Certification requirements, i.e., shippers have the responsibility of declaring the correct weight.
19. Unit Price:
Indicate the price of each individual unit within the shipment.
20. Total Value:
Indicate the piece count multiplied by the unit price for each line on the bill of lading. The value should
be in either Canadian or U.S. currency, depending on the destination.
21. Importer Name:
Indicate if other than consignee.
22. Broker Name:
Indicate the name of the Customs broker filing the entry on behalf of the importer.
23. Address:
Indicate the complete address, city, province/state, and postal or ZIP code of the importer.
24. Country of Origin:
Indicate the country where the goods were produced.
25. Port of Exit:
Indicate the port and country from which the goods are departing.
26. Value Currency:
Indicate the total invoice price of goods shipped.
27. Destination Port and Country:
Indicate the port and country to which goods are destined.
28. Manifest from:
Indicate the port where the goods begin their bonded movement. Note: Bonded movement refers to
shipments moving in bond beyond the border crossing, for Customs clearance at an inland point, as
opposed to shipments being cleared Customs at the border crossing point. For example, a shipment
moving by rail from Toronto to Kansas City usually clears U.S. Customs at Buffalo-Niagara Falls, N.Y.
but it could also move in bond from Buffalo-Niagara Falls and clear U.S. Customs at the Kansas City rail
terminal.
29. Manifest to:
Indicate the port where the goods will end their bonded movement.
30. IRS#/Business Number:
For U.S.-bound shipments, indicate the Internal Revenue Service number, the tax number of the U.S.
importer. For Canada-bound shipments, indicate the Business Number of the Canadian importer.
31. C4 or Bar Code#:
Indicate the numerical equivalent of a bar code. It identifies the importer and line-release participants.
97
32. Customs Entry Type:
Indicate the Customs clearance process being used, e.g., “T&E” (Transportation and Exportation Bond)
for foreign goods moving through the U.S. for export to a third country; “at border” for carload and
Canadian origin intermodal shipments destined to the U.S. (a broker at the border crossing must be
employed to file paperwork and obtain clearance prior to arriving at the border); “PARS” (Pre-Arrival
Review System) or “INPARS” (Inland Pre-Arrival Review System) for participating shippers allowing for
expedited Customs release; “IT” (Immediate Transportation Bond) for all international container traffic
moving to points in the U.S. and intended for entry into U.S. commerce (rarely used for domestic North
American traffic).
33. Is This a CSA Shipment:
Indicate if yes or no. CSA (Customs Self-Assessment) programs is used by pre-approved importers,
carriers and registered drivers to expedite low-risk shipments. This is a Canadian program and its U.S.
equivalent is called ISA (Importer Self Assessment).
34. Special Instructions:
Indicate if the shipment contains perishables, dangerous goods, deliveries for intermodal traffic or stop-
offs. Note: dangerous goods are identified and classified in the Dangerous Goods Regulations.
35. Pick-Up Date:
Indicate the year, month, day and time when the shipment was picked up.
36. Intermodal Service Type: Indicate one.
37. Length and Height of Unit:
Indicate the size of the transportation unit.
38. Notify Party and Phone:
Indicate the name and phone number of the party to be notified when goods arrive at destination. This
should be a local party.
39. Delivery to be Performed by:
Indicate the name of the party delivering the unit after it reaches destination.
40. Delivery Date and Time:
Indicate the appointed date and time that the customer arranges with the local rail terminal for delivery of
the shipment to the customer’s dock.
41. Contract#/Quotation#/Steamship Booking#:
Indicate a rate-quotation reference. This ensures that correct charges are levied.
42. Signature of Shipper/Exporter:
43. Signature of Railway Company Agent:
13 Source: Rule 11 definition - Oracle Transportation Management

99
CHAPTER 11
MOVING FREIGHT BY TRUCK
INTRODUCTION
“If you got it, a truck brought it.”, author unknown.
Trucking is vital to the Canadian economy. Nearly all goods that move, either internationally or
domestically, are “touched” by some form of truck movement. It could be a large tractor-trailer unit, or a
small pick-up truck used by a local farmer.
It is impossible to overstate the importance of road transportation and the necessary infrastructure to
any economy. National prosperity is highly dependent on such infrastructure to bring goods to market
efficiently. Road transport directly affects almost all of North America’s production and consumption,
and by far outweighs any other mode of transport. A statistical tidbit, for example, highlights the
importance of trucking between southeastern Michigan and southwestern Ontario, where over 35 million
tons of goods are moved yearly by truck versus 16 million tons by water, 6 million tons by rail and about
2.5 million tons by air and “other” means. This is not to belittle the role railroads play on the continent
when it comes to the movement of bulk commodities and the vitality of their existence in the formation
of block trains to move containers from port to key inland distribution centres. Railroads still haul the
highest percentage of “heavy tonnage” and are making great strides in service options to reattract the
manufactured goods sector. However, from an overall perspective of manufactured goods, road
transport today plays the most significant role.
HISTORY OF ROAD FREIGHT HAULAGE
Although trucks as we know them today are a 20th century phenomenon, the movement of freight by
road haulage is nothing new at all. We all know of the wagon trains, which moved people and their
belongings across Canada before the advent of railways.
It was, however, only in the 1950s that trucking came into its own. At that time, the railways had only
outmoded equipment to offer the shipper, while the development of highway systems, the availability of
cheap fuel, and the technical advances in the field of auto engineering all combined to produce fleets
of highway trucks. These trucks were capable of moving large amounts of freight at very competitive
rates, including to parts of the country not served by the railways. Crippling railway worker strikes in the
early 1950s heavily influenced the predominance of trucking over rail freight haulage. In the 1970s and
1980s, federal, provincial and territorial governments began to deregulate the trucking industry. After
this deregulation, trucking companies expanded in scope and progressively became the dominant form
of land-based transportation in Canada. Trucking is vital in making Canada one of the world’s great
trading nations.
THE LEGISLATIVE ENVIRONMENT IN CANADA
There are three levels of government - municipal, provincial and federal - that regulate trucking
operations in Canada.
Canada is unique among western countries in that the federal government does not play a large role in
the regulating of the trucking industry. In many countries, the senior levels of government are involved in
issues such as regulating truck operators and the taxing of roads.
Under Canada’s original constitution, the federal government was responsible for regulating inter
provincial trucking. This meant that if a trucking company had 99% of its fleet operating within one
province and 1% operating between provinces, the company would fall under federal regulatory
requirements.
However, in 1954, the federal government revised legislation by way of the Motor Vehicle Transport
Act, and delegated most of the regulatory responsibility to the provinces and territories. The federal
government is still
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responsible for regulating standards in new vehicles, transportation of dangerous goods and
international crossings, among other things.
As a result, the legislative climate for trucking in Canada is regulated at the provincial level. This means
that there are different conditions in each of the 10 provinces and three territories.
Canadian trucking companies operating in the United States are regulated under the federal U.S. law
(main highways) and individual state laws (state highways).
Regulations affect such issues as licensing, equipment, weight and dimensions, speed limits, taxes,
insurance, tariffs, labour issues such as wages and training, liability, vehicle and driver safety, hours of
service, daily trip reporting, maintenance standards, carrier record keeping, roadside inspections and
others. Some relevant organizations and regulatory bodies in Canada are below:
CCMTA - Canadian Council of Motor Transport Administrators

This is not an organization in the ordinary sense of the word but more closely reflects the function of a
regulatory agency. It is quasi-governmental, with membership of the transport ministers from all levels of
government, as well as private-sector associations such as the Canadian Trucking Alliance, etc.
CTA - Canadian Trucking Alliance
This alliance is a federation of provincial trucking associations that represents the industry’s viewpoint on
national and international policy, regulatory and legislative issues that affect trucking.
PMTC - Private Motor Truck Council of Canada
This association represents members who operate their own, private truck fleet to haul their own
products or those who lease trucks, trailers or personnel to private fleets.
Of all of the organizations listed, the most relevant to our industry is the Canadian Trucking Alliance.
FEDERAL VS. PROVINCIAL JURISDICTION
Provinces and territories build, own, and operate the roads within their jurisdictions. As such, the move
behind allowing each province or territory to regulate their own roads makes sense.
Concerns over highway safety in the 1980s led to the implementation of the National Safety Code
(NSC) which covers 15 areas of concern, such as knowledge and performance testing, medical
requirements, hours of service, on-road inspections, and classified drivers’ licences. Unfortunately,
governments have been struggling with the implementation of the NSC’s uniformity across the country.
Areas of Licensing/Regulations
It is not practicable to list, in the context of this course, licensing requirements and regulations for every
province and territory. We shall, however, address the areas that are important to the international freight
forwarder:
Traffic Regulations
Provincial governments own and operate their highways and, consequently, regulate trucks traveling and
using these publicly owned roads. Trucks are subject to a large number of traffic regulations. Examples
of these types of regulations are special speed limits for trucks on specified highways and certain lane
restrictions prohibiting the access of a particular truck size.
Operating Licences
Each province and territory’s Ministry of Transport requires that all trucks be licenced. Operating licence
requirements vary from province to province, as does the application form. Areas of licensing
commonly addressed are the type of carrier, area of service, vehicle weight registration, and
commodities carried. An example of type of carrier would be a for-hire carrier that transports goods
belonging to others and is paid to do so; or a private carrier that transports goods that have been
manufactured or sold by that company and is an integral part of their primary business. Regarding the
scope of operation, a different licence may be required if trucks are operated outside provincial
boundaries or within city limits, such as a local cartage company.
Vehicle Weight and Dimensional Regulations

Provincial and territorial regulations define, for each jurisdiction, the allowable weight per axle, the total
combined weight of the vehicle and cargo, and how wide and high the vehicle may be. In British
Columbia, for example, there are clearly defined regulations regarding the operation of trucks hauling
timber. The regulations referring to
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allowable weights and dimensions are no doubt different from those defining the transport of timber in
Prince Edward Island. (Refer to the Canadian Size and Weight Requirements for Commercial Vehicles
further on).
Please note that this is the combined weight of the vehicle and cargo. As regulations change and are
continually adjusted to meet various market forces and political “whims,” the chart should be used only
as a guideline. It is always best to check with the carrier on weight limitations.
Another example highlighting the need to be aware of weight restrictions would be to examine a tandem
tractor and tandem semi-trailer with five axles. In British Columbia, the maximum allowable vehicle and
cargo weight is 87,000 Ib, which is also allowable in Ontario; however, due to weight restrictions in
Alberta, Saskatchewan and Manitoba, this load cannot be driven across the country without special
permits.
In Canada, the freight forwarder must also be aware of spring weight restrictions, put in place to protect
the highways from damage, during the spring-thaw period, approximately between mid-March and the
end of May. Provinces and states will limit the weights that can be transported over the road. The
restrictions are generally a percentage of the maximum allowable weight and depend on the type of
equipment and number of axles. The following are illustrations of a standard tractor trailer and a special
3-axle trailer.
Source: Ontario Ministry of Transport

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The weight limits can also vary according to the zone within each province. An example of such zoning
in Quebec is illustrated below.
Source: Transports Québec
Axle weights are also important where weight limitations are concerned, because the weight must be
distributed over the tractor and trailer axles according to different formulae in the various provinces.
Never assume anything and check it out first.
For road transport, over-dimensional freight can be defined as any piece that exceeds one or more of
the legal-size criteria of the province or provinces and states involved, if freight is transported into the
U.S. While the parameters vary slightly from province to province, as a general guideline, you could
consider the following dimensions as being oversize: over 53 ft in length, over 8 ft 6 in in width and over
13 ft 6 in in height from the road to the top of the load.
As a forwarder, you could always check with the regulatory authorities and the carrier as to the maximum
dimensions allowed, particularly if the load height and width approach the figures mentioned above.
If the loads, by virtue of their height, width, length, or weight, exceed jurisdictional maximums, special
permits and/or escorts will be required. This may result in the load being restricted to a certain routing,
or to a certain time of day (e.g., may be shipped only during daytime for safety reasons, or by night to
avoid traffic jams). Such permits for oversized loads may also take some time to obtain, especially if
the load has to pass through more than one province. There is an inter-jurisdictional task force and
several interjurisdictional agreements that allow a truck to obtain an over-dimensional permit in one
province that will be valid in the next. As always, check with the carrier.
Each provincial Ministry of Transportation enforces its regulations seriously. “Weigh scales” or “truck
inspection stations” are everywhere along the highways. The job of these stations/inspectors is
enforcement. Enforcement includes the checking not only of dimensional and weight regulations, but
also of driving times, trip reports and the mechanical condition of the vehicle. Often a truck is held up
until another is sent to take off a portion of a truckload that makes it overweight, or to reload into a
mechanically safe vehicle. Many transportation departments have mobile inspectors who are equipped
with portable scales and have the authority to seize a vehicle.
In 2001, New Brunswick entered into an initiative to harmonize vehicle weights and dimensional
standards with other Atlantic provinces and Quebec, even though each jurisdiction retains the right to
issue oversize permits. Harmonizing and standardizing truck transport within these provinces means
better trade between the regions, and further harmonization across the country.
Civic/Municipal Jurisdiction
Carrier services (cartage) performed within city limits are subject to provincial size and weight limits, but
are generally licensed by the city. An important consideration in dealing with cartage companies is to
know the city limits. With urban expansion in many of our larger centres, the cities (in the broadest
sense) often stretch beyond their actual legal city limits. Thus, what (to us) is “the city” may (in terms of
jurisdiction) be an adjoining rural area. Other cities may operate different “zones,” which cartage
companies may be permitted to operate into, from or between. Civic jurisdiction also covers restrictions
on truck size on certain roads and truck noise, limiting the use of air brakes in specified areas.
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Canadian Size and Weight Requirements for Commercial Vehicles

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CHAPTER 12
COMMODITIES CARRIED BY TRUCKS
The main commodities transported by truck in Canada are manufactured and miscellaneous goods,
machinery and electrical equipment, automobiles and other related materials, agricultural and food
products, plastics and chemical products, and base metals and articles of base metal. In lesser
quantities, the following are also transported by trucks in Canada: forest products, liquefied natural gas
and petroleum products, waste and scrap, cement and non-metallic products and minerals, ores and
concentrates.14
We have defined over-dimensional freight for road transport in an earlier chapter when dealing with
weight and dimensional regulations. It is worth mentioning that these types of moves require extensive
planning and preparation; experienced transport companies must be used and they must use
experienced driving teams. When planning to ship oversize cargo by road, a basic principle to follow is
that the items shipped must not be loaded or mounted on top of each other in a way that will create
additional height; the same is true with over-length and overweight items. Depending on the
specifications, special, expensive equipment may be required, as well as escort vehicles, police
escorts, a pole car (to verify the clearance of power lines and similar obstacles) and permits from each
jurisdiction involved. Special routes may have to be used, including detours to avoid obstacles,
overpasses, etc., and travel may be restricted to daytime, weekdays, outside of rush-hour traffic, etc.
14 Source: Transport Canada

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CHAPTER 13
ROAD EQUIPMENT
Approximately 30% of all trucks that are used to carry freight are truck-tractors, the powered vehicles
that pull the trailer, while the remaining 70% are “straight trucks,” powered vehicles with freight-carrying
bodies attached. Straight trucks operate primarily on city streets and local roads and, consequently, are
primarily used by local cartage companies. They come in varying lengths and dimensions.
Tractor/trailer units are used primarily for longer hauls. Trailers come in varying lengths and
combinations (see chart on next page for weight requirements), but most trailers are 8 ft wide (inside),
and have an inside height of 8 ft 6 in. The average length of the trailer is 48 ft; however, some
interprovincial carriers are averaging 53 ft. It is always important to know the number of axles on the
trailer, as well. More axles on the trailer will allow a greater load to be carried by the trailer. Some straight
trucks have three axles, allowing them to carry a greater weight. Some typical tractor/trailer
combinations are included in the chart.
There are several kinds of trailers adapted to transporting different merchandise. The main ones are
the van body semi-trailer, which can be isothermal, heated or refrigerated; the moving van semi-trailer
that can also be used for transporting electronic products; the platform semi-trailer (or “flatbed”), which
can be equipped with fixed or removable slats and adapted to hauling lumber, logs, etc.; the dump
semi-trailer; and the tank semi-trailer (pressurized, clean bore tank body or compartmented tank body),
as well as so-called logistics trailers that allow for double floors and better load utilization and
stackability.
The majority of LTL (less than truck load) freight moved in a carrier system moves in pups (pup-trailers).
In both Canada and the U.S., two 28-ft pups can be moved together. In some areas, carriers are
allowed to run triple units of pups (3 × 28-ft pups).
The pup system has proven itself as more economical than the usual 48-ft tractor/trailer combination.
After all, it allows for a total of 56 ft of loading space versus 48 ft for the tractor/trailer combination.
Carriers must always attempt to maximize the loading capacity to 100% of all allowable space, in order
to be both competitive and profitable. For LTL, much like for ocean freight consolidations, capacity
usage is a key element of a successful operation.
Regarding FTL (full truck load) and as far as equipment is concerned, most vans on the road now
consist of 48-ft trailers and 53-ft trailers. When the latter were introduced, carriers charged a premium
for their use, but competition is such that there is no longer much difference in price between the two.
There are special trailers built to carry marine containers. These are commonly called “container
chassis.” They are similar in principle to a flatbed trailer, but instead of a “deck” to which the container is
attached, there is a special frame in the shape of an “I” onto which the container is placed. There are
special locking mechanisms that secure the container to the chassis located at the four bottom corners.
These locking devices allow the driver to quickly secure the container to the chassis.
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Dry Van
Tandem axle: 45 ft long, 8 ft 6 in wide.
The smallest inside dimension: 44 ft long, 8 ft 2 in wide, 8 ft 5 in high.
Refrigerated or Heated Van
Tandem axle: 45 ft long, 8 ft 6 in wide.
The smallest inside dimension: 43 ft 3 in long, 7 ft 8 in wide, 7 ft 8 in high.
Pup Dry Van
Single axle: 26 ft long, 8 ft 6 in wide.
Pup Refrigerated or Heated Van
Single axle: 26 ft long, 8 ft 6 in wide.

Flat Deck Stake and Rack Trailer
45 ft long, 8 ft 6 in wide, 54 in off the ground.
Tandem axle includes tarpaulins and hoops (bows). Sides are 78 in high.
Drop Deck Trailer
Tandem axle: 46 ft long, 40 in off the ground.
Extends to 10 ft wide and 65 ft long.

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CHAPTER 14
TRUCKING RATES AND CHARGES
In order to determine the trucking freight charge, the freight forwarder must know how to calculate the
chargeable weight of the shipment - the weight that the freight charge will be based upon. The following
examples will demonstrate the step-by-step process of calculating chargeable weight and
subsequently the applicable freight charge.
Example Shipment 1
Number of pieces: 1 wooden crate

Dimensions: Length 36 in × width 24 in × height 24 in
Weight: 550 lb
Step 1: calculate the actual weight.

Multiply the number of pieces in the shipment by the weight of each piece. 1 piece × 550 lb = 550 lb
The actual weight of this shipment is 550 lb.
Step 2: calculate the volume weight.

i) Calculate the cubic inches of the shipment
Multiply the number of pieces in the shipment by their length, width, and height (in inches). 1 piece ×
36 in × 24 in × 24 in = 20,736 in3
ii) Convert cubic inches to cubic feet
Divide the cubic inches by 1,728 (number of cubic inches in one cubic foot) 20,736 in3 ÷ 1,728 = 12
ft3
iii) Calculate the volume weight
All truck rates are based on a minimum density of 10 lb/ft3 (with the exception that some trucking
companies in the Atlantic provinces allow 15 lb/ft3). Multiply the cubic feet × 10 lb/ft3 12 ft3 × 10 lb/ft3
= 120 lb
The volume weight of this shipment is 120 lb.
Step 3: determine the chargeable weight.

The chargeable weight is the HIGHER of the actual weight or volume weight. The actual weight is 550
lb and the volume weight is 120 lb.
The chargeable weight of this shipment is 550 lb (which is the actual weight). This chargeable weight
(550 lb) will be used to determine the freight charges.
Step 4: calculate the freight charge.

Divide the chargeable weight by 100, and then multiply by the applicable cwt rate. 550 lb ÷ 100 × CAD
$11.65 (an example of a cwt rate) = 64.075 = CAD $64.08
The freight charge for this shipment is CAD $64.08.

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Example Shipment 2
Number of pieces: 2 wooden skids/pallets

Dimensions of each skid: Length 48 in × width 40 in × height 48 in
Weight of each skid: 440 1b
Step 1: calculate the actual weight.

Multiply the number of pieces in the shipment by the weight of each piece. 2 pieces × 440 lb = 880 lb
The actual weight of this shipment is 880 lb.
Step 2: calculate the volume weight.

Palletized shipments: In cases where the shipment is on skids/pallets, the dimensions of the
skids/pallet may determine the cubic dimensions.
i) Calculate the cubic inches of the shipment
Multiply the number of pieces in the shipment by their length, width, and height (in inches). 2 pieces
× 48 in × 40 in × 48 in = 184,320 in3
ii) Convert cubic inches to cubic feet
Divide the cubic inches by 1,728 (number of cubic inches in one cubic foot) 184,320 in3 ÷ 1,728 =
106.6666 ft3 = 106.67 (rounded up to 2 decimal places)
iii) Calculate the volume weight
All truck rates are based on a minimum density of 10 lb/ft3 (with the exception that some trucking
companies in the Atlantic provinces allow 15 lb/ft3).
Multiply the cubic feet × 10 lb/ft3: 106.67 ft3 × 10 lb/ft3 = 1,066.7 lb = 1,067 lb (rounded up to the
next highest full pound)
The volume weight of this shipment is 1,067 lb.
Step 3: determine the chargeable weight.

The chargeable weight is the HIGHER of the actual weight or volume weight. The actual weight is 880
lb and the volume weight is 1,067 lb.
The chargeable weight of this shipment is 1,067 lb (which is the volume weight). This chargeable
weight (1,067 lb) will be used to determine the freight charges.
Step 4: calculate the freight charge.

Divide the chargeable weight by 100, and then multiply by the applicable cwt rate. 1,067 lb ÷ 100 ×
CAD $10.25 (an example of a cwt rate) = 109.3675 = CAD $109.37
The freight charge for this shipment is CAD $109.37.
For more explanation on the calculation of the freight charge, refer to the following pages.
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HOW ROAD TRANSPORT RATES ARE SET

When negotiating rates, a variety of factors enter the picture. The more familiar one is with the different
components that can affect costing, the more likely one will be to negotiate a better rate. Costing is
largely influenced by the factors listed hereafter. However, more economical classifications and rates
can potentially be negotiated if one ships large quantities or with a high frequency.
Factors affecting rates are:
Carrier’s cost;
Competition with other modes of transport or other road carriers;
Value of the merchandise;
Annual volume;
Size per shipment;
Total cargo weight;
Spring-season weight restrictions in Canada;
Equipment required;
Delivery requirements (many drops vs. through movement); and
Possibilities of backhaul cargo.
FTL vs. LTL Shipments

In FTL shipments, the customer has enough cargo to fill a truck or has a partial load but prefers to use a
dedicated truck. This might be the case, for example, with shipments of 10 or more pallets, or for high-
value cargo, fragile items, unpacked goods or when time is of the essence (urgent shipment or fixed-
time delivery). FTL is also sometimes abbreviated to “TL,” short for trailer load.
LTL is used for small shipments from multiple customers that are consolidated into full loads or near-full
loads moving between major centres. LTL is ideal for small businesses, as the transportation cost is
shared with other shippers and each one pays for his portion of the truck, based on the amount of
product shipped. When shipping LTL, adequate packaging, protection and marking are essential in
order to prevent damage, since the cargo will be subject to multiple handling. Because of this multiple
handling and the necessity to combine shipments, LTL is proportionally more expensive than FTL but
substantially cheaper than air freight.
Pricing varies depending on supply and demand but for shipments of, let’s say 20,000 lb and upward, it
is wise to check both options, FTL and LTL, to see which is cheaper and/or best suited for the cargo.
Although Canada adopted the metric system in the 1970s, due to our proximity to the United States
(which still uses the imperial system) and the importance of our bilateral trade, Canadian trucking rates
are still expressed per 100 lb, often abbreviated “cwt” (meaning per hundred weight).
LTL rates are structured on a scale with weight breaks, i.e., the smaller the shipment, the higher the rate
and the bigger the shipment, the lower the rate, and with a minimum per shipment:
L5C = less than 500 lb

5C = 500 lb to 999 lb
1M = 1,000 lb to1,999 lb
2M = 2,000 lb to 4,999 lb
5M = 5,000 lb to 9,999 lb
10M = 10,000 lb to 19,999 lb
20M = 20,000 lb to 29,999 lb
30M = 30,000 lb to 39,999 lb
40M = 40,000 lb plus
When the charge computed on the higher rate at actual weight exceeds the charge computed on the
lower rate at the respective weight breaks, the latter charge will apply. To further explain the calculation
of the freight charge earlier in this chapter, in order to calculate the proper freight cost, the following
formula applies:
Chargeable weight (the HIGHER of the actual weight or volume weight) in pounds divided by 100. This
will give the hundredweight (cwt) of the shipment. Multiply the cwt by the appropriate cwt category rate
as indicated above.
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This will give the cwt charge for the shipment. If the cwt charge is lower than the minimum rate, apply
the MIN rate as the actual cost for the movement. Freight may be subject to oversize and fuel
surcharges.
For example, if a 1,000-lb shipment cubes up to 100 ft3, you pay on the actual weight of 1,000 lb. If the
same 1,000-lb shipment cubes 120 ft3, you pay on the volume weight of 1,200 lb. If it cubes 140 ft3,
you pay on the volume weight of 1,400 lb and so on. For pieces over 10 ft long, a linear-feet rule
generally applies. The formula varies but a typical one is to assess 1,000 lb per linear foot. For non-
stackable packages, most truckers calculate the volume weight based on 96 inches in height, i.e., a
non-stackable pallet of 42 in × 48 in × 40 in high would pay on the volume weight of 42 in × 48 in × 96
in.
In addition, remember that rates quoted are based on “shipper load and consignee offload.” In other
words, the trucker will position his truck/trailer at the loading dock, but it is the shipper/consignee that is
responsible for the loading and offloading of the goods. This is particularly important to remember
when you are dealing with a new customer. Inquire about their ability to load/offload goods heavier than
one person can handle.
Normally, LTL rates include 1 hour free for loading and 1 hour free for off-loading the goods. For FTL,
the free time is 2 hours. An additional fee will be charged if this time limit cannot be observed.
All common carriers calculate the best rate by assessing the weight bracket offering the cheapest cost.
For example, a shipment weighing some 1,750 lb might travel cheaper if the lower rate assessed for
the 2,000-lb category (2M) is applied and calculated as a chargeable weight of 2,000 lb.
In Canada, costs for bulky and light cargo are assessed on the volume/weight and the density factor
used is10 lb per ft3. So, for a shipment of 1,000 lb cubing 80 ft3, the actual weight will be used, but if
the same 1,000-lb shipment cubes 120 ft3, the volume/weight of 1,200 lb will be used to calculate the
trucking cost.
How to Calculate Release Value and Density
Most common carriers offer substantial volume discounts as incentives for regularly using their
services, and it is recommended that you make the most-possible use of this. In some cases, carriers
will offer spot deals based on a quarter-load or a half-load, instead of the usual per 100 lb LTL rate.
Truckers often use this when looking for a backhaul.
In the U.S., there is a system of class rates for LTL pricing based on density, stowability, handling and
liability, i.e., value of the goods. These rates are maintained by the National Motor Freight Classification
Association and are referred to as the National Motor Freight Classification™ (NMFC! ). Commodities
are grouped into 18 classes, from a low of class 50 to a high of class 500. Lower classes represent
very dense freight that is not prone to damage and easy to handle, as well as heavy and cheap items
(e.g., bricks, roller bearings, etc.). Lower classes have lower rates. Conversely, higher classes
represent lighter, less dense freight that typically takes up more space, as well as light and expensive
goods (e.g., feathers, automobile body parts, etc.). The higher the class, the higher the rate will be. This
classification is accepted and used by most, if not all, common LTL carriers in the U.S. Today, enough
classifications are available to address higher-value goods. For example, the high value of certain
computer parts will influence their classification, as higher value clearly implies higher risk exposure.
For further information on the National Motor Freight Classification’, visit www.nmfta.org/pages/nmfc
It is interesting to note that, for domestic cargo, the density factor and stowability are still very much the
key to rating, whereas with shipments to the United States, the NMFC” classification system accounts
for all factors, such as stowability, fragility (risk of damage), perishability, density and value of goods.
Freight All Kinds (FAK) pricing can sometimes be negotiated with the trucker, allowing multiple products
with different classes to be shipped and billed at the same freight class. For example, a client that ships
multiple commodities in classes ranging from 50 to 100 could negotiate a FAK with the carrier to rate all
items at class 70. As in Canada, shippers in the U.S. get the benefit of the best rate being assessed on
the weight bracket offering the cheapest cost, i.e., as already mentioned, if it is cheaper to assess the
2,000-lb rate on a 1,750-lb shipment, the freight cost will be calculated on 2,000 lb.
There are two ways the international freight forwarder can obtain freight rates. He/she can either phone
the trucking company (or a number of trucking companies, if competitive bids are required) or consult a
highway
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carrier’s published tariff. Except as otherwise specifically mentioned, rates include pick-up and delivery
services within reasonable limits at points of origin and/or destination.
Paying the Trucker for Services Rendered

Unlike the railways, which have switched to the electronic transfer of funds, some trucking companies
are still billing the traditional way. This is understandable, as they are small in comparison with the
railways and do not have access to the same capital investment funds.
The first time you ship with a trucking company, you will usually be billed the next day with payment due
“upon receipt of invoice.” However, the company will usually include a credit application with your
invoice and, once credit is approved, you will be billed periodically as agreed.
Conclusion
Clear and detailed description of the goods, within the context of the classification description (tariff), is
important to ensure the most advantageous rating and freight rates;
Always try to consolidate shipment;
Enquire about discounts offered by the various carriers. They usually start at 40% and can go much
higher if the freight package offered is of particular interest to the carrier; and
Before selecting a carrier, compare the costs between linehaul carrier and freight broker.
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CHAPTER 15
ROUTE DEVELOPMENT
Trucking came into widespread use in the western world during World War I, and quickly gained
reputation as a means of long-distance transportation of goods. Modern highways, such as the Trans-
Canada Highway, Highway 1 (Australia) and Pan-American Highway, allowed transport of goods and
services across great distances. Automobiles continue to play a crucial role in the economies of the
industrialized countries, resulting in the rise of businesses such as motor freight operation and truck
transportation.
It is important to note the significance of the Convention on the Contract for the International Carriage of
Goods by Road (CMR), a United Nations convention that was signed in Geneva in 1956. It relates to
various legal issues concerning transportation of cargo by road where the place taking over the goods
and the place designated for delivery as specified in the contract, are situated in two different countries,
of which at least one is a contracting party. Based on the CMR, the International Road Union (IRU)
developed a standard CMR waybill.
As the rail and road transportation infrastructure of various regions of the world was described in the rail
transportation section of this textbook, on the following pages we will focus mainly on transportation of
freight by truck in the CUSMA region, after briefly mentioning some valuable points with respect to truck
transportation in Europe and Asia.
The European Union

Transportation in the European Union is a shared competence of the Union and its member states.
When it comes to roads, Germany, Spain and France have the most extensive network of highways,
while the Netherlands and Belgium have a better coverage per square kilometer, due to their high
density. As previously mentioned, over 40% of freight in the E.U. moves by road transport, particularly
for short and medium distances, as it offers the flexibility of goods being collected and delivered from
door to door. It also offers an easier alternative in case of slowdowns. The industry is represented by
the European Road Haulers Association, located in Brussels (www.uetr.eu), whose members are
national road transport associations.
Asia
Road transportation in Asia is much more diverse and varies a lot from country to country, as national
transport networks tend to be less integrated than in North America or in Europe. Most Asian countries
are developing countries, and modern transport infrastructure is still lacking in some areas. Japan has a
modern infrastructure but, due to density and street design, trucks tend to be smaller than in North
America and movements of 40-ft containers overland can be problematic. China and India are huge
countries and both rely heavily on trucks to move goods, while their rail infrastructure is catching up to
the needs of modern commerce. In south-east Asia, linking the major cities, ports and airports of
Singapore, Malaysia, Thailand, Laos, Vietnam and Cambodia with reliable trucking services to one
another and to major destinations in China, creates competition with air and ocean services.
It is worth mentioning here that, when arranging a shipment beyond the port or the airport of arrival
overseas, i.e., to a door destination, be it through the freight forwarder’s own office or via an agent, the
freight forwarder must communicate with the overseas partner ahead of time in order to verify the local
trucking requirements, regulations, restrictions and documentary requirements. Some countries are
more protectionist than others, make the import process difficult, require permits for most, if not all,
imports and restrict the import process to local companies, i.e., exporters cannot sell DDP, as they
cannot act as “non-resident importers.” When shipping to those countries, it is recommended that you
not get involved beyond the port or airport of arrival, leaving the local operations to the importer.
Canada
In Canada, an excellent highway system offers coast-to-coast road transportation. The northern territory
of Nunavut does not have any roads and can be accessed only by water during the summer navigation
period. Yellowknife in the Northwest Territories is the northern end of the road connecting Alberta and
the rest of the “southern” country. The Dempster Highway (gravel road) runs from near Dawson City in
the Yukon north to Inuvik, NWT. The main road from B.C. through Yukon continues to connect with the
Alaska Highway. The western Arctic (Northwest Territories - NWT) basically has the following roads
connected with the south: Yellowknife, capital of the NWT, is 1,500 km of paved road north from
Edmonton; Inuvik (NWT) can be reached via the Dempster Highway, a 671-km-long year-round gravel
road that branches off the Klondike Highway near Dawson City in the Yukon Territory; and
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Hay River (NWT) has year-round paved highway access. During the winter time, however, many
temporary ice roads allow for trucks to deliver fuel and other heavy equipment. Ice roads are known to
hold up to 60 MT of rolling stock. The only other available transportation method is by airplane.
Canada’s National Highway System
Source: Statistics Canada
The Canada-United States border is the longest international border in the world and has 119 border
crossings, with around 30,000 trucks crossing daily. The Ambassador Bridge connecting Windsor, ON
with Detroit, MI is Canada’s primary border crossing for trucks, and Windsor-Detroit is the busiest
commercial land border crossing in North America. Other large border crossings for trucks for each
bordering province are as follows: Sarnia-Blue Water Bridge (ON), Fort Erie-Peace Bridge (ON), Pacific
Highway/Douglas (BC), Niagara Falls-Queenston Bridge (ON), Lacolle 1 (QC), Emerson (Manitoba),
Lansdowne (ON), Coutts (AB), North Portal (SK), Woodstock (NB).
U.S.A.
Most of the goods that move between Canada and the U.S. are transported by either rail or truck. Nearly
30% of freight in the U.S. moves by truck.
The Dwight D. Eisenhower National System of Interstate and Defense Highways, commonly known as
the Interstate Highway System, is a network of controlled-access highways that forms a part of the
National Highway System of the United States. It is named after President Eisenhower, who
championed its construction. It is approximately 48,000 miles (77,232 km) long. Interstate highways
and their rights of way are owned by the state in which they were built.
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U.S. Truck Traffic Density
Source: U.S. Department of Transportation
Just like in Canada, there are three levels of government - municipal, provincial and federal - that
regulate trucking operations in the United States.
As mentioned earlier, Canadian trucking companies operating in the United States do so under federal
U.S. law (main highways) and the laws of the individual states through which they move (state highways).
In the U.S., the federal government and state governments share the authority over different aspects of
the industry.
Canada, the United States and Mexico have established a special body to consider the integration and
standardization of North American rules, but it has accomplished little to date.
The U.S. federal government took its first major step in 2000 to deploy a nationwide system to track all
transactions involving cross-border trucking between the U.S. and its neighbours, Canada and Mexico.
The first deployment of the ITDS (International Trade Data System) began in 2001 at the federal ports
of entry in Buffalo, NY It developed into a nationwide program for the electronic collection, use and
dissemination of international trade transaction data. ITDS is a public and inter-agency interface for all
international trade and transportation transactions for the movement of cargo in either direction across
U.S. borders. ITDS permits advance filing by shippers and motor carriers so federal agencies can pre-
clear cargo, vehicle and crew before they arrive at the border crossing. The trade community submits
one set of data to the government for all international trade transactions.
Some relevant organizations and regulatory bodies with respect to the CUSMA region are:
ATA - American Trucking Association

This is the national representative body of the U.S. state trucking associations. It takes the lead in
representing the interests and concerns of the trucking industry before Congress and various agencies at
state and federal level.
NPTC - National Private Truck Council
This is the U.S. equivalent of the Canadian PMTC.
CANACAR - Camara Nacional del Autotransporte de Carga
This is the Mexican equivalent to the Canadian CTA and the U.S. ATA.
NATA - North American Transportation Alliance
With the formation of the NAFTA, now the CUSMA, the trucking associations of Canada, the United
States and Mexico have joined to support the integration of truck transportation within the whole region.
Founding members are the CTA, ATA and CANACAR.
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NAPTC - North American Private Truck Council
This is the equivalent to NATA for the private truck organizations of North America.
The most relevant of the above organizations for international freight forwarders are the American
Trucking Association (ATA), the Mexican Trucking Association (CANACAR) and possibly the North
American Trucking Alliance (NATA).
Just like in Canada, there are variations in height and weight allowances for roads in different U.S.
states. The following graphic provides the height, length and weight limitations for each of the mainland
states. Because this information is always subject to change, you should use the graphic only as a
guideline and always verify the limitations when planning a shipment.
United States Size and Weight Requirements for Commercial Vehicles

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Mexico
Although both rail and road transport are commonly used when shipping goods from Canada to Mexico,
the majority of freight moves by road. Trucking in Mexico is a federally controlled activity.
Mexico has been slower to modernize its highway management than Canada and the U.S. have been.
Its privately operated toll road system (the world’s longest network of this kind, with some 6,500 km),
launched in the 1990s, has been a mixed success, technically and financially. The road transport
infrastructure is less dense than in most advanced countries and the highway network is about half as
dense as Brazil’s.
Until January 1, 2000, road transport to and from Mexico had been a complicated and frustrating
undertaking, from both a physical and a regulatory point of view. This was largely because of Mexican
regulations that allowed only Mexican nationals and tractor units to move goods in Mexico. (Since
December 1995, Canadian and U.S. trucking firms were allowed to operate their own equipment and
drivers in Mexican border states, but penetration further into the country was not allowed). These rules
required that shipments and trailer loads had to be transferred at the U.S./Mexican border onto a
Mexican truck or hitched to a Mexican tractor.
Since January 1, 2000, however, Canadian and U.S. trucking firms have had free access to the Mexican
marketplace, and services have improved. Furthermore, the Canadian and U.S. investment limit in this
industry sector increased to 51 percent effective January 1, 2001 and was lifted completely as of
January 1, 2004.
The following map illustrates the highway system in Mexico. The main border crossings for trucks from
the U.S. to Mexico are Laredo/Nuevo Laredo in the east and San Ysidro/Tijuana in the west.
Map of the Mexican Highway System
Source: Secretaria de Comunicaciones y Transportes, Mexico
According to the Mexican Ministry of Transport, the Gross Weight and Dimensions Regulation defines
the restrictions for inland haulage as follows:
Gross weight, including truck, platform/chassis, container tare and cargo in tandem basis is 75.5 metric
tons;
Distance allowance to get to customer’s premises is 25 km of transit among highways (ET, A and B) and
roads under category C and D (non-toll roads);
The maximum cargo net weight allowance per container is as follows:
– Dry container (20 ft or 40 ft): 21 metric tons.
– Reefer container: 21 metric tons.
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CHAPTER 16
BOOKING CARGO WITH A TRUCK CARRIER
As mentioned earlier in this book, highway transportation is subject to licensing requirements. Weight
and size restrictions vary from province to province and from state to state. It is, therefore, imperative
when negotiating rates and services to ensure that the carrier you are about to use is capable and
licensed to carry the goods. It is rare that a single carrier can offer the service to all destinations.
There are a number of linehaul carriers or common carriers in the marketplace, although recent years
have seen some consolidation in the industry. It is probably best to source these types of companies
through either the CTA (Canadian Trucking Association) in Canada or the ATA (American Trucking
Association) in the United States.
When it comes to the business of independent tractor/trailer operators or, in other words, truckload
carriers that individually own one or more units, the business becomes more complex. Independent
owners usually take on a full load to move from a point of origin to a point of destination with direct
loading and unloading between shipper and consignee. The owner then must look for a backhaul to
maximize revenue. To access a network of load brokers, you can probably rely on word of mouth and/or
the Internet. Specialized websites also provide matching services between freight and available
equipment.
Because each carrier has its strengths and weaknesses, a serious pre-qualification process is
necessary. Here are some of the basic questions you might ask; add others for your particular needs:
Questionnaire for Trucking Firms

1. Do you have the permits, licences, bonds and authorizations required to carry the goods?
2. Do you have radio dispatch? If not, what communication system is in place with drivers?
3. What insurance do you have in place? Get a copy of their policy.
4. How much time do you provide at no charge for loading and unloading and what are the extra charges
beyond that time?
5. What accessorial charges are there?
6. Can you provide consolidated billings? If so, what formats do you offer?
7. What is your percentage of billing accuracy?
8. What is the average age of your equipment (tractors and trailers)?
9. Can you supply reports on volumes and lane statistics on a monthly basis?
10. Can you provide monthly on-time performance reports?
11. Do you supply “proofs of delivery” free of charge? If not, what is the charge?
12. What is the maintenance schedule on your equipment?
13. What is your IT capability and what services do you offer?
14. Do you supply online tracking? If so, is it via the Internet or proprietary software?
15. Should an on-site coordinator be required, can you supply one?
16. Are you ISO certified? If not, what quality control system do you have in place?
17. What sets you apart from the competition?
18. What is your claims ratio and what average time is required for resolution?
19. Do you have interline agreements with other carriers. If so, who are they and for what lanes?
20. Request a list of satisfied customers for reference.
21. Are you a bonded carrier (Canada and the U.S.A.)?
22. Are you C-TPAT certified (U.S.A.) and/or PIP certified (Canada)?
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CHOOSING A HIGHWAY CARRIER
Competition
Competition is one of the main factors influencing the freight forwarder in arranging the best
transportation program for his client. In order to serve the objectives and interests of the client, we must
always be aware of the places served by carriers and their licensing authorities. Directories published
by the individual provincial trucking associations are great tools for this.
Public Relations
Remember that the trucker serves a very important role for you as an international freight forwarder,
since he is the one who has face-to-face contact with the shipper or consignee. His contact with your
client has resulting responsibilities and consequences.
Cargo Handling and Inspection

The driver does not actually handle the cargo but is responsible to determine the adequacy of the
packaging, the apparent condition of the cargo and the piece count. He is our first line of “quality
control” for exports, while for imports, the delivering driver must ensure proper sign-off.
Appearance
The appearance of the drivers themselves, and that of their helpers, as well as their language and
mode of behaviour, can leave good or bad impressions in the minds of your clients. Remember, it was
you who employed the trucker in the first place, and he or she is a reflection of your company.
Punctuality
The closer a shipment is to final delivery, the more anxious the client becomes. At that stage, even a
half-day delay in delivery can be more upsetting than a week’s lay-up somewhere overseas. How does
your highway carrier or local cartage agent keep you informed and measure up to this criterion?
Tracing
Who can be more frustrated than the forwarder trying to find a shipment “somewhere” in his own city?
Moreover, how foolish one can appear in such a situation! If possible, engage the services of a carrier
that has tracking and tracing services compatible with your own. The trucking industry today is
computerized, making the situation easier. Trucks in Canada equipped with satellite-based tracking and
messaging services have become the standard in the industry.
Liability
Unless otherwise stated and agreed upon by the parties, the road carrier’s limit of liability is CAD
$2.00/lb or CAD $4.41/kg in Canada. The amount of any loss or damage for which the carrier may be
liable will not exceed this stated amount. One must always be aware of any contract agreements signed
with a trucking or cartage company and the relevant limits of liability. Remember that proper transport
insurance is necessary for any commodity priced higher than the limited liability mentioned. These
amounts apply to Canadian truckers in Canada. In the U.S., truckers’ limits of liability vary but are
generally lower than in Canada. This must be considered when comparing rates between a Canadian
and an American trucker.
Different Levels of Service

Carriers generally offer several levels of service; three examples are discussed below.
The Expedited or Rush Service

This level of service is often branded separately from the other services offered. It provides swift,
accurate and dependable service needed for rush shipments, for example a four-day door-to-door
service from Montréal to Vancouver with team-drivers. Another example would be a two-hour delivery
within a prescribed geographical area, usually the city limits. This type of premium service demands a
premium price and is often the most expensive service offering of a trucking or cartage company.
Specialty Shipments
Some carriers handle special cargo, oversize/out-of-gauge, heavy, perishable and/or hazardous
cargos, with equipment, drivers and office staff dedicated to and trained for these shipments. These
are also considered premium services, demanding premium prices. Special permits and specific
equipment are often required to move
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this type of freight. Trucks equipped with a hydraulic tailgate to bring the freight to ground level when
there is no “dock level” door available for loading/unloading would fall under this category, as well.
Regular Service
This is the most economical service offered and it does not usually come with a time-definite delivery.
For short distances, this often translates into an overnight service, the cartage company collecting the
cargo on one day, returning to its dock and delivering the cargo to the consignee the next day. For long
hauls, this means moving the cargo through distribution centres for cross-docking and delivery as a
second step.
Check Your Carrier

An important note at this point is to remember that most carriers pay for individual vehicle licences
according to the maximum weight a vehicle can carry. Therefore, they do not like to pay for unused
capacity and are keen to maximize the use of their equipment. Of course, we must always ensure that
the carrier we are going to use has the necessary equipment and service level required, at the place
and time of such requirement!
Load Brokers
Load brokers are primarily non-asset-based intermediaries who find a truck for the load to be moved
(working on behalf of a shipper and a consignee) and a load for a truck (working on behalf of a carrier).
Their reward is the difference between the buying rate (from carrier) and the selling rate (to the shipper
or consignee). Load brokers are of interest for movements of about a quarter truckload and up.
This profession greatly helps the trucking industry, but it is strongly recommended that you do proper
due diligence on such firms. Freight forwarders must try to find experienced load brokers with a good
reputation. Some provinces have recognized this and have permit requirements for load brokers, with
minimum surety bonds. Another requirement is that banking be done independent of other commercial
activities undertaken. This helps with such issues as liability and transparency of financial activities. In
the United States, a more regulated environment exists, and load brokers are required to apply for an
ICC permit (Interstate Commerce Commission).
Rates can fluctuate greatly and vary based on supply and demand. For example, during the winter
season, there is a high requirement of truckloads moving from Florida or California to supply the fresh
fruit and vegetable needs of Canada. All of the tractor/trailer units used for these shipments need to
return to their point of origin, and any backhaul load either part of the way or all of the way will help
maximize profitability on the move. In the United States, a Canadian carrier is not permitted to pick up a
U.S. domestic shipment and deliver it within the U.S.; similarly, in Canada, a U.S. carrier is not permitted
to pick up a Canadian domestic shipment and deliver it within Canada.
For many international freight forwarders, trucking is ancillary to their main activity. Therefore, they may
not be trucking specialists, and using the services of a load broker to achieve the best possible service
and rates is tempting. However, there are few controls for such services and it is essential to select
these partners carefully, after proper investigation of their credentials. Larger freight forwarders often
have their own in-house load-brokerage department.
SUMMARY
In closing, let’s review some of the points to be observed when arranging shipment by truck in Canada:
Make sure the carrier has the “authority” (i.e., the correct licensing) to do what you require of him;
Make sure the law allows you to do what you want to do;
Make sure proper equipment is available at the time you need it;
Remember that the trucking company reflects on your own company (the public relations aspect);
Visit trucking terminals; see the actual trucks; meet with the drivers; “know” what you are talking about
when you are later on the phone with your own clients;
Remember that other countries may have different approaches to trucking. For example, Japan has very
different highway weight limits for its trucks, so a container shipped from Vancouver to Osaka may not be
permitted to move inland from the port of Osaka because of the weight limits on Japanese highways; and
Make sure the trucker is informed in advance of any movement of dangerous goods (hazardous
materials/restricted articles), and that the shipper supplies all relevant documentation accordingly.
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CHAPTER 17
HOW THE CARGO MOVES
For FTL shipments, cargo will move from shipper to consignee without rehandling.
For LTL, a typical sequence of the activity is as follows:
1. When goods are ready, the shipper calls the dispatcher of the “end of line terminal” (EOL) of a carrier.
2. The carrier dispatches a local truck to the shipper’s door for pick up of the cargo.
3. The local truck brings the trailer to the EOL, along with other pick-ups made.
4. The local truck is unloaded at the terminal and cargo is sorted and/or cross-docked according to
destination
5. After sorting, a trailer is loaded at the trucker’s DC (distribution centre) and dispatched to either another
DC or an EOL.
6. The linehaul driver takes the trailer to the next stop. If the haul is long, drivers must be switched at a
relay point as per provincial regulations that limit the driver’s time on the road.
7. The EOL unloads the linehaul trailer and loads the city trucks for final delivery, where the consignee will
unload the goods.
The Importance of Proper Packaging for LTL
Since LTL freight moves within the hub and spoke system of linehaul carriers, goods will be handled
several times before arriving at destination. Proper packaging and marking is, therefore, essential to
minimize the risks of damage and misrouting. Goods should be skidded or palletized as much as
possible, and addresses, weights and number of packages in the shipment must clearly show on each
shipping unit. Boxes should be strapped on the skids/pallets; for fragile cargo, shrink-wrapping/water-
proofing should be considered. Special handling instructions, like “do not double-stack,” must be
clearly visible on all sides.
Lastly, one must remember that the driver who picks up the goods is not the driver who will deliver
them. Therefore, verbal instructions to the driver are good but not sufficient. Instructions must always
be clearly marked/labelled on the packages and on the bill of lading, to ensure a smooth delivery.
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Knowing your transportation partner, knowing who you are dealing with and who is going to handle the
goods on your behalf, is also a key element of a successful transport service.
Shipment Arrives at Destination

Many trucking companies offer FTL service to Mexico and a few offer LTL services. Cargo travels
through the U.S. in bond and is generally Customs cleared at the border by a Mexican Customs broker.
Unlike in Canada (or the U.S.), this activity is reserved for local Mexican companies. Customs clearance
can take a few days. Due to this, as well as for security reasons, trailers are usually dropped in the
Customs bonded area and subsequently picked up after Customs clearance by a Mexican driver for
delivery to final destination, i.e., the Canadian tractor does not cross the border and does not perform
the local delivery in Mexico.
At the destination, the proper parties are notified, delivery appointments are made and the shipment is
delivered according to instructions and against payment of applicable charges, if any.
Some Terminology
Direct Load Destination - DC
This terminology is used when a trucker picks up the last load (end of line load) and carries it directly to
the destination distribution centre, hence bypassing any earlier distribution and consolidation centre.
Direct Load - EOL

In this case, an “end of line load” is carried directly to the destination end of line, meaning that goods
do not need to be transferred at any distribution centre.
Time in Break
This LTL terminology is used to measure the time between the arrival and departure of the goods at a
distribution centre. The norm is between 16 and 18 hours.
Employees Who Work for FTL/LTL Carriers

City Driver
Driver that picks up or delivers freight locally within a terminal (distribution centre) area.
Linehaul Driver
Driver that hauls goods between distribution centres (terminals) over long distances.
Dockworker
Employee who loads/unloads freight on a dock.
Shunter
Driver who backs up trailers or pulls trailers out of the dock.
Dock Foreman
Person in charge of dock workers.
Dispatcher
Person who organizes drivers to the place of pick up and/or delivery.
Terminal Manager
Person responsible for the operation and administration of the terminal.
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CHAPTER 18
TRANSPORTATION DOCUMENTATION
The bill of lading is the most important transportation document in the shipping process. It is both a
receipt and a contract. A properly completed and signed bill of lading is a legal document that shows
that the carrier has received and accepted the freight as described and is obligated to deliver the
goods in good condition to the consignee as stipulated in the bill of lading. One bill of lading is required
for each shipment.
Every bit of information on the bill of lading is important. It dictates the actions of the transport company
all along the route and who is responsible for what.
Because of the multitude of provincial licensing laws regarding operating licenses, there is no real
uniformity in a truck bill of lading. They vary from trucking company to trucking company.
Nevertheless, the truck bill of lading does have some basic characteristics that are common to all:
It is a receipt of goods for shipment;

It is a contract of carriage; and
It does not confer title of ownership of the goods.
In addition, because it is a Canadian “domestic” document, it is subject to the written and unwritten
provisions of English Common Law, as well as the Civil Law of Quebec.
Another important thing to remember is that most international freight movements include at least one
portion where cargo moves by truck. Here the terms, conditions and liability of the truck bill of lading are
different from either the ocean bill of lading or the air waybill. Study these terms and conditions and
learn what they are. We have included truck bills of lading from two different companies, followed by
conditions of carriage that are typically on the reverse side of the bill of lading. The conditions of
carriage may, however, differ from trucker to trucker.
Trucker’s Liability
As mentioned earlier, highway transport liability is usually limited to CAD $2.00/lb and CAD $4.41/kg. If
higher coverage is required, the value must be declared on the bill of lading. This allows for additional
coverage, but will also require an additional premium. In most cases, cheaper cargo insurance can be
obtained when insuring the shipment through the freight forwarder’s regular underwriter. Cargo
insurance, however, must always be obtained either by the shipper directly or through the freight
forwarder or carrier. For a liability, CAD $2.00/lb more than likely will not cover the value of any
manufactured goods! It is highly recommended that you always check whether insurance has been or
must be obtained. If the shipper/customer insists that insurance is covered, always request
confirmation in writing. As trading conditions can vary from carrier to carrier and play a particularly
important role when dealing with load brokers, it is strongly recommended that you request a copy of
the respective carrier’s trading conditions and check that they are on par with industry standards. The
freight forwarder has a responsibility of due diligence towards the insurance underwriter and, in certain
circumstances, it may be advisable to double-check the suitability of the trading conditions with the
underwriter.
The following copies of truck bills of lading illustrate the information required for completion. Again, it is
imperative that this document be completed properly. As most of the boxes in the following bills of
lading are self-explanatory, we will explain only those that we believe require clarification.
Declared valuation: high-value items may be declared in this field. The rates on certain commodities are
dependent on their declared value, and the carrier will add a considerable “value charge” for insurance
purposes.
Dangerous goods are articles or substances which are capable of posing a risk to health, safety, property
or the environment and are listed in the Dangerous Goods Regulations. They are classified into 9
classes, identified by UN numbers and proper shipping names and meet the criteria of one of three
packing groups.
The bill of lading must be signed by the shipper. In addition, the shipper must retain a copy of the bill of
lading signed by the driver as proof that the carrier picked up the goods and as a receipt for the goods,
and the consignee signs as proof that the goods have been delivered to the final destination in good
order.
When transporting dangerous goods by land, there is no form to use other than the bill of lading, which
must, therefore, include all information relating to the dangerous goods in precise detail.
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Source: Maritime Ontario Freight Lines Limited and Meyers Transport

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The Terms and Conditions of carriage below are printed on the reverse side of the bill of lading:
I APPLICATION
The following provisions shall apply to all transportation of goods by for-hire Highway carriers licensed
under the Motor Vehicle Transport Act (Canada), R.S.C. 1970, M-14 or under provincial statutes with
the exception of the transportation of:
a) Used household goods.
b) Livestock.
c) Bus parcel express shipments.
d) Such other commodities as may be specified by provincial law.
II BILL OF LADING
1. A bill of lading shall be completed as provided for each shipment.

2. On each article covered by the bill of lading there shall be plainly marked thereon by the shipper, the
name of the consignee and the destination thereon. This requirement does not apply in cases where the
shipment is from one consignor to one consignee and constitutes a truckload shipment.
3. The bill of lading shall be signed in full (not initialed), by the consignor and by the carrier as an
acceptance of all terms and conditions contained therein.
4. At the option of the carrier a waybill may be prepared by the carrier and the waybill shall bear the same
number of other positive means of identification as the original bill of lading. Under no circumstances
shall the waybill replace the original bill of lading.
III CONDITIONS OF CARRIAGE
1. Liability of Carrier
The carrier of the goods herein described is liable for any loss of or damage to goods accepted by him
or his agent except as hereinunder provided.
2. Liability of Originating and Delivering Carriers
Where a shipment is accepted for carriage by more than one carrier, the carrier issuing the bill of lading
(hereinafter called the originating carrier) and the carrier who assumes responsibility for delivery to the
consignee (hereinafter called the delivering carrier), in addition to any other liability, hereiunder, are
liable for any loss or damage to the goods while they are in the custody of any other carrier to whom the
goods are or have been delivered and from which liability the other carrier is not relieved.
3. Recovery from Connecting Carrier
The originating carrier or the delivering carrier, as the case may be, is entitled to recover from any other
carrier to whom the goods are or have been delivered the amount of the loss or damage that the
originating carrier or delivering carrier, as the case may be, may be required to pay hereinunder resulting
from loss of or damage to the goods while they were in the custody of such other carrier. When
shipments are interlined between carriers, settlement of concealed damage claims shall be prorated on
the basis of revenues received.
4. Remedy by Consignor or Consignee
Nothing in articles 2 or 3 deprives a consignor or consignee of any right he may have against any
carrier.
5. Exceptions from Liability
The carrier shall not be liable for loss, damage or delay to any of the goods described in the bill of lading
caused by an Act of God, the Queen’s or public enemies, riots, strikes, a defect or inherent vice in the
goods, the act or default of the consignor, owner or consignee, authority of law, quarantine or
differences in weight of grain, seed, or other commodities caused by natural shrinkage.
6. Delay
No carrier is bound to transport the goods by any particular vehicle or in time for any particular market or
otherwise than with due dispatch.
7. Routing by Carrier
In case of physical necessity where the carrier forwards the goods by a conveyance that is not a
licensed for-hire vehicle, the liability of the carrier is the same as though the entire carriage were by
licensed for-hire vehicle.
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8. Stoppage in Transit
Where goods are stopped and held in transit at the request of the party entitled to so request, the goods
are held at the risk of the party.
9. Valuation
Subject to article 10, the amount of any loss or damage for which the carrier is liable, whether or not the
loss or damage results from negligence, shall be computed on the basis of
a) The value of the goods at the place and time of shipment, including the freight and other charges
if paid, or
b) Where a value lower than that referred to in paragraph (a) has been represented in writing by the
consignor or has been agreed upon, such lower value shall be the maximum liability.
10. Maximum Liability

The amount of any loss or damage computed under paragraph (a) or (b) of article 9 shall not exceed
$2.00 per pound (or $4.41 per kilogram) computed on the total weight of the shipment unless a higher
value is declared on the face of the bill of lading by the consignor.
11. Consignor’s Risk
Where it is agreed that the goods are carried at the risk of the consignor of the goods, such agreement
covers only such risks as are necessarily incidental to transportation and the agreement shall not relieve
that carrier from liability for any loss or damage or delay which may result from any negligent act or
omission of the carrier, his agents or employees and the burden of proving absence from negligence
shall be on the carrier.
12. Notice of Claim
a) No carrier is liable for loss, damage or delay to any goods carried under the bill of lading unless
notice thereof setting out particulars of the origin, destination and date of shipment of the goods
and the estimated amount carried in respect to such loss, damage or delay is given in writing to the
originating carrier or the delivering carrier within sixty (60) days after the delivery of the goods or in
case of failure to make delivery within nine (9) months from the date of shipment.
b) The final statement of the claim must be filed within nine (9) months from the date of shipment
together with a copy of the paid freight bill.
13. Articles of Extraordinary Value

No carrier is bound to carry any documents, species or any article of extraordinary value unless by a
special agreement to do so. If such goods are carried without a special agreement and the nature of the
goods is not disclosed thereon, the carrier shall not be liable for any loss or damage in excess of the
maximum liability stipulated in article 10 above.
14. Freight Charges
a) If required by the carrier, the freight and all other lawful charges accruing on the goods shall be
paid before delivery and if upon inspection it is ascertained that the goods shipped are not those
described on the bill of lading the freight charges must be paid upon the goods actually shipped,
with any additional charges lawfully payable thereon.
b) Should a consignor fail to indicate that a shipment is to move prepaid or fail to indicate how the
shipment is to move, it will automatically move on a collect basis.
15. Dangerous Goods

Every person, whether the principal or agent, shipping explosives or dangerous goods without previous
full disclosure to the carrier as required by law, shall indemnify the carrier against all loss, damage or
delay caused thereby, and such goods may be warehoused at the consignor’s risk and expense.
16. Undelivered Goods
a) Where, through no fault of the carrier, the goods cannot be delivered, the carrier shall immediately
give notice to the consignor and consignee that delivery has not been made and shall request
disposal instructions.
b) Pending receipt of such disposal instructions:
i) The goods may be stored in the warehouse of the carrier, subject to a reasonable charge
for storage, or
ii) Provided that the carrier has notified the consignor of his intention, the goods may be
removed to, and stored in a public or licensed warehouse, at the expense of the consignor,
without liability on the part of the carrier, and subject to a lien for all freight and other lawful
charges, including reasonable charge for storage.
127
17. Return of Goods

Where notice has been given by the carrier pursuant to article 16a) and no disposal instructions have
been received within 20 days from the date of such notice, the carrier may return to the consignor at the
consignor’s expense all undelivered shipments from which such notice has been given.
18. Alterations
Subject to article 19 any limitation on the carrier’s liability on the bill of lading and any alteration or
addition or erasure in the bill of lading shall be signed or initialed by the consignor or his agent and the
originating carrier or his agent and unless so acknowledged shall be without effect.
19. Weights
It shall be the responsibility of the consignor to show correct shipping weights of the shipment on the bill
of lading. Where the actual weight of the shipment does not agree with the weight shown on the bill of
lading, the weight shown thereon is subject to correction by the carrier.
20. C.O.D Shipments
a) A carrier shall not deliver a C.O.D. shipment unless payment is received in full.
b) The charge for collecting and remitting the amount of C.O.D. bill for C.O.D. shipments must be
collected from the consignee unless the consignor has otherwise so indicated and instructed on
the bill of lading.
c) A carrier shall remit all C.O.D. monies to the consignor or person designated by him within 15 days
after collection.
d) A carrier shall keep all C.O.D. monies separate from other revenues and funds of his business in a
separate trust fund or account.
e) A carrier shall include as a separate item in his schedule of rates the charges for collecting and
remitting money paid by consignees.
IV OTHER SPECIFICATIONS
128
THE eMANIFEST
eManifest is the third phase of the Advance Commercial Information (ACI) initiative which was being
implemented over a number of years since 2004. eManifest requires carriers, freight forwarders and
importers in all modes of transportation (air, marine, highway and rail) to electronically transmit cargo,
conveyance, house bill/supplementary cargo and importer data to the Canada Border Services Agency
(CBSA) prior to loading in the marine mode and prior to arrival in the air, rail and highway modes. This
marks an important step forward in creating a multimodal manifest that is standardized across the
modes of transportation.
eManifest - Time Frames for Submitting Advance Information
Marine Air Rail Highway
Carriers: Cargo: 4 hours 2 1 hour

provide 24 hours prior to prior to hours prior to
electronic loading or arrival, arrival or prior arrival.
cargo, depending on type at time of to
conveyance and origin of goods. departure. arrival. CBSA:
and validate data,
crew/passenger risk-assess
information: Conveyance/crew: the shipment
24 or 96 hours prior and make a
to arrival. recommendati
on prior to
Freight 24 hours prior to 4 hours 2 1 hour arrival of the
forwarders: loading or arrival, prior to hours prior to shipment in
depending on type arrival or prior arrival. Canada.
provide
electronic and origin of goods. at time of to
house bill departure. arrival.
/supplementary
cargo data:
Importers: 24 hours prior to 4 hours 2 1 hour

provide loading or arrival, prior to hours prior to
electronic depending on type arrival or prior arrival.
importer data: and origin of goods. at time of to
departure. arrival.
129
CHAPTER 19
ADVANTAGES AND DISADVANTAGES OF MOVING
FREIGHT BY TRUCK
The railways and trucking companies compete for freight. The major difference between the two is the
type of freight they are competing for. The railways primarily haul containers and bulk commodities -
e.g., grain and coal over long distances. Trucks move these, too, but generally at a local level, for
example gravel in dump trucks, lumber, and grain in the prairies. Over longer distances, trucks have
more flexibility to serve the manufacturing, wholesale and retail industry, as they are not bound to rail
lines. Each mode of land transport has its inherent advantages over the other.
Advantages of Moving Freight by Truck

Can offer door-to-door movement;
Does not depend on schedules, so offers flexibility limited only by the time required for travel;
Offers delivery to remote parts of the country and those not served by railways; and
Can change routes as necessary to avoid obstacles and delays.
Disadvantages of Moving Freight by Truck

Subject to interprovincial licensing regulations and road weight limitations;
Not suitable for bulk transports over large distances;
Higher risk factor due to highway accidents happening more frequently than rail accidents;
Pollution problems related to the movement of freight, e.g., one diesel locomotive hauling 75 grain cars
vs. 75 trucks hauling 75 trailers of grain; and
Trucks require greater maintenance than railway rolling stock.
LAND TRANSPORTATION - PROCESS MAP
The flowchart on the following page highlights the process of shipment execution from planning to the
closing of the file for a shipment transported by truck or rail.
130

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45

Commodities Carried by Rail 49

Rail Intermodal Services 57

The Domestic Pool Car Service 65

Rail Rates and Booking Cargo with a Rail Carrier 90

Shipment Arrives at Destination; Advantages and Disadvantages of Rail 98

Moving Freight by Truck 99

Commodities Carried by Trucks 104

Road Equipment 105

Trucking Rates and Charges 107

Route Development 112

Booking Cargo with a Truck Carrier 117

How the Cargo Moves 120

Transportation Documentation 122

Advantages and Disadvantages of Moving Freight by Truck 129

3 Source: Transport Canada.

CPR Last Spike Ceremony, Craigellachie, B.C.

CPR Last Spike Ceremony, Craigellachie, B.C.

Streamlining the process for abandoning and transferring rail lines;

The Regulatory Environment for Railroads

The Importance of Measuring Cargo

12 ft in height or 15 ft 6 in or more above top of rail (TOR) once loaded;

4 Source: Statistics Canada

Depressed Centre Flatcars

DOT-111 Tank Cars

The Unit Train

CPR Unit Train Carrying Coal to Roberts Bank, B.C.

Source: www.ferriesbc.proboards.com; JSTphoto

Moving Over-Dimensional Cargo

Dimensional Load Set to Leave CPR Edmonton Yard

6 Denis Lupien, Market Manager, CN International.

INTERMODAL AND MULTIMODAL TRANSPORTATION

Toronto - Montréal, 18 hours;

VARIETIES OF INTERMODAL SERVICE

COFC (Container on Flatcar)

TOFC (Trailer on Flatcar)

COFC AND TOFC PLANS

Plan 2 - Rail-Operated Door-to-Door Service

Plan 5 - Motor Carrier- or Railway-Owned

The carrying capacity of cars is generally classified as follows:

Two 20-ft loaded containers plus one 40-ft loaded container; or

The average capacity per platform is as follows:

Capacity Length (ft) Load (lb)

TTX Intermodal Cars

TTX Conventional Cars

Terminals consist of:

In- and out-gates to handle trucks interchanging containers;

Automated gate systems;

Source: Canadian Pacific Railway News

Broad geographic coverage;

Freight Traffic CIM/SMGS

Freight Traffic CIM/SMGS

Canadian Pacific Railway

Source: David Spencer; www.scenic-railroads.com

Canadian National Railway

The Smaller “Independent” Railways

Source: U.S. Department of Transportation

The U.S. Freight Rail Network

Source: Association of American Railroads

Map of the Mexican Railway System

Source: Union Pacific de Mexico

The West Indies (Caribbean)

Map Copyright © 1999 by World Trade Press. All Right Reserved.

Additionally, in transportation geography, Europe is divided into the following regions:

Int. Trade & Transportation Part III Land Transportation

Int. Trade & Transportation Part III Land Transportation