Navigating Canada’s Northern Supply Chain: Challenges And Solutions

Canada’s Northern Supply Chain

When looking for freight forwarding services in Canada, companies often consider the cities or southernmost region of the country. However, many economic opportunities are presenting themselves in Northern Canada—mining, energy, and international shipping corridors. By positioning your company as an important player in Canada’s Northern economy, you can reap the benefits of projected economic growth. 

Understanding The Unique Northern Landscape

Northern Canada is a somewhat ill-defined geographic term. At its most narrow definition, Northern Canada encompasses the three Territories: Yukon, the Northwest Territories, and Nunavut.

The broadest definition is one taken by Statistics Canada—a definition in which Northern Canada encompasses territories that border the United States

For our purposes, Northern Canada will remain the region that is north of the 54th parallel, but some areas to the south of that parallel may still be considered Northern. Broadly, regions in Northern Canada share the following traits:

  • Very low population density
  • Little to no road access
  • Extreme seasonal changes
  • Larger Indigenous and Inuit populations per capita
  • Economies that are more reliant on the primary sector (mining, forestry, energy, fishing)

The unique geographical, economic, and political landscape of Canada’s North presents a number of unique challenges and opportunities to businesses interested in importing and exporting to Northern markets. There has also been a recent push to open up Canada’s Northern ports for more imports and exports from international markets:

The goal of these projects is to increase international exports—especially of critical minerals—through shipping routes in the North. Infrastructure projects are key to unlocking Canada’s potential as a mining superpower—and companies that have already established relationships and shipping routes in Northern Canada will be primed to benefit from the potential economic growth in these communities. 

Common Logistical Obstacles And How To Overcome Them

Having established that shipping to Northern Canada is beneficial—and that the time to start is now—it’s important to address the unique logistical obstacles that come with shipping northward. We can break these logistical obstacles down into a few categories:

  • Lack of infrastructure
  • Extreme seasonality
  • Sparse, decentralized population
  • Regulatory considerations

Overcoming these obstacles is difficult, but not impossible. Businesses that do overcome these challenges can be rewarded by lucrative opportunities, all while positioning themselves for growth as the economy of the region expands.

BBE can help you overcome all of the obstacles inherent to shipping northward.

Lack Of Infrastructure

The most obvious obstacle to Northern shipping is the lack of infrastructure:

  • Nunavut is not connected to any other part of Canada by road.
  • Communities in the Territories are often disconnected from each other by road.
  • Roads are often seasonal in nature (we will examine this further in the next section).

The territories alone account for about 40% of Canada’s land mass; this is a vast region with almost no roads. Multimodal transportation solutions are essential to accessing Canada’s North. To get shipments to mines, energy projects, and settlements across the North, businesses may have to use:

  • Air freight
  • Sea freight
  • Ice road trucking
  • Snowmobiles

BBE can help. We have partnered with transportation companies, including a number of Indigenous-owned transportation companies, to secure access to all of the markets in Northern Canada. We can transport goods by sealift, by ice road, by snowmobile, by air, and more.

Lack of infrastructure also means shipments take longer to arrive. At BBE, we specialize in cold chain logistics; we can transport perishable goods to and from the North while keeping them at the required temperature. 

Seasonality

In the North, the effects of the extreme seasonal weather we see throughout Canada are amplified:

  • There are fewer resources available to clear roads after snowstorms.
  • Ice roads only work in the winter.
  • Barges only work in the summer.
  • In the spring and fall, ice floes across rivers can make sections of the North completely inaccessible by land.
  • Sea freight is only available for a small part of the year (typically late June or early July to late October or early November).

Building resilient supply chains to the North necessarily involves using different modes of transportation and alternative routes depending on the season. You may need to use a combination of air cargo, sea freight, ice road shipping, traditional road shipping, and snowmobile shipping to get your goods to and from Northern communities. 

Thanks to our decades of experience shipping to the Canadian North, we have developed comprehensive route analysis techniques to help you adjust your shipping routes as the seasons change. 

Sparse And Decentralized Populations

Many Northern communities have populations of well under 1000 people. To move from one community to another, freight must travel vast distances through the Canadian North. 

These remote communities rely on regular shipments of food and other supplies. They are often connected to primary sector operations, including mining and energy camps; freight moves from them to these temporary settlements. 

By plotting the most efficient route to and from these communities, it is possible to increase the profitability of your operations by reducing costs associated with delays and unnecessary travel. We have partnered with a number of companies, including Indigenous-owned transportation companies, to create efficient shipping routes throughout the North. 

Regulatory Considerations

Canada’s territories, like the provinces, have their own rules and regulations governing trade. Those who are aiming to ship products to and from Northern ports for international trade must also consider international regulations.

BBE can help. We have extensive knowledge of the rules and regulations governing trade in each of the territories. We also provide customs broker services, so we can help companies importing to Canada from the North. 

Partnering With Specialized Providers For Success

The unique supply chain challenges presented by the geopolitical realities in Canada’s North require innovative solutions. Specialized providers—companies with experience shipping to Northern Canada—are essential if you want to successfully navigate these challenges.

At BBE, we have delivered to local communities throughout the territories and the Northern parts of the provinces. Our shipping partners are specialized, too. They live and work in the communities they serve, and offer unique knowledge, experience, and relationships. 

BBE’s Freight Solutions

Economic development in Northern Canada and the Canadian Arctic is all but certain—and when the Northern economy booms, you want your business to be well-positioned.

We can help. Our freight solutions to the North include:

  • Cargo tracking
  • Cargo consolidation
  • Cargo profiling
  • Dangerous goods transport
  • Cold chain logistics
  • Critical spare delivery
  • Camp supply management
  • Fresh and shelf-stable food distribution
  • Industrial equipment and MRO fulfillment
  • Bulk resupply
  • Route risk and cost analysis
  • Hotshot services
  • And more

Partner with the Canadian supply chain company that knows Canada’s North. Partner with BBE today. 

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