Transportation and Logistics Supplies Market in Canada
Canada’s logistics industry, worth USD 106.4 billion in 2024, is growing steadily due to strong trade, e-commerce demand, and infrastructure investment. Warehousing is a major driver, projected to reach USD 92.9 billion by 2030. Key hubs like Toronto and Vancouver support domestic and international flows, while the sector embraces tech and green logistics to meet rising demand.
What is the electronic & technology industry market size in Canada?
The logistics and transportation industry is a vital pillar of Canada’s trade and commercial activity. In 2024, the Canadian shipping and freight market was valued at approximately USD 106.4 billion, reflecting strong and sustained demand for transportation, warehousing, and delivery services. The sector includes freight transport (road, rail, air, and marine), large-scale warehousing and distribution centers, and rapidly expanding last-mile delivery networks driven by the continued growth of e-commerce.
The warehousing segment alone generated about USD 59.5 billion in 2024 and is projected to reach USD 92.9 billion by 2030 (a CAGR of 7.7%). Overall, Canada’s freight and logistics market is expected to grow steadily to around USD 112 billion in 2025, supported by stable cross-border trade under CUSMA, ongoing infrastructure investments, and rising e-commerce volumes that are tightening delivery timelines and increasing the demand for fulfillment capacity.
Key transportation hubs—including Toronto, Vancouver, and Montreal—serve as critical gateways for both domestic distribution and international trade. The industry also contributes significantly to national employment, with thousands of companies operating across the supply chain, from major third-party logistics providers to independent trucking firms.
Key Trends:
• E-commerce expansion continues to drive higher shipping volumes (an estimated 18% surge post-pandemic).
• Warehouse automation, real-time tracking systems, and digital logistics platforms are being increasingly adopted to improve efficiency and visibility.
• Sustainability pressures are encouraging greater use of intermodal rail and lower-emission fleet strategies due to rising carbon pricing.
• Global trade shifts and tariff adjustments continue to influence import/export flows, but the Canadian market remains resilient, supported by technological modernization and network optimization across the logistics sector.
Key Categories of Logistics & Transportation Supplies in Canada
Logistics and transportation in Canada depend on a diverse range of supplies and equipment. Below are the core categories essential to efficient operations across warehousing, freight, and delivery services:
Packaging Materials
Essential for securing and protecting goods in transit, packaging materials include corrugated boxes, shipping cartons, stretch film, packing tape, void fill, and protective wraps. With Canada's packaging industry valued at over USD 22.5 billion by 2025, there's a growing emphasis on sustainable options like recyclable or biodegradable packaging. Popular items include poly mailers, shrink wrap, and strapping systems used across warehouses and fulfillment centers.
Pallets and Bulk Containers
Pallets and containers form the backbone of material handling and storage. Wooden pallets dominate due to their cost efficiency and strength, supporting a market valued at USD 20.7 billion in 2024 and growing steadily. Standard 48×40-inch wood pallets are widely used, while plastic variants and reusable containers are gaining ground in hygiene-sensitive and export settings. Canada follows strict regulations like ISPM-15 heat-treatment for international shipping, and pallet recycling and pooling are standard practices for sustainability and cost control.
Warehouse Equipment
Operational efficiency in warehouses relies on racking systems, forklifts, pallet jacks, conveyor belts, dock levelers, and material handling tools such as hand trucks and safety barriers. The forklift market alone is valued at over USD 1.08 billion in 2024, with rapid growth driven by demand for electric models. Safety-compliant racking systems and turnkey installation services are standard, and warehouses also stock maintenance items like racking labels, load protectors, and spare parts.
Vehicle Maintenance Supplies
Keeping freight fleets operational requires constant access to maintenance essentials. These include engine components, brakes, filters, lubricants, winter-grade tires, and diesel exhaust fluid (DEF). Batteries, lighting systems, and MRO tools for garage operations are equally important. Most items are sourced through specialized automotive parts distributors, with quick fulfillment (often via local warehouses or same-day delivery) crucial for minimizing vehicle downtime.
Transportation Accessories
To ensure safe and compliant cargo handling, transport accessories such as ratchet straps, cargo tie-downs, tarps, load bars, bungee cords, and corner protectors are indispensable. Equipment like dock plates, hoists, and slings are widely used in loading areas. Canadian regulations require that securement gear meets strict safety and certification standards (e.g., WLL-tagged straps), making quality and compliance critical for logistics operators.
IT and Tracking Hardware
Advanced logistics now depend heavily on smart hardware tools. These include barcode scanners, RFID systems, GPS trackers, and truck-mounted telematics for real-time diagnostics. Warehouse environments use label printers, mobile terminals, and IoT sensors for visibility and automation. Canada’s IoT asset tracking market is set to grow from USD 7.8B in 2025 to nearly 20B by 2031. Most of this hardware is imported and must meet Canadian telecom and safety certifications. Many hardware vendors partner with software providers to offer integrated logistics tracking platforms.
Import / Export Trends
Canada depends heavily on imports to meet its logistics and industrial supply needs, with China standing out as a key trade partner. In the first half of 2025, China supplied approximately 12% of all Canadian merchandise imports—amounting to CAD 48 billion, an 8% increase from the previous year. Major import categories from China included consumer goods (~CAD 15 billion), electronics (~CAD 10.3 billion), and industrial machinery (~CAD 6.5 billion). These sectors—many of which involve logistics-related equipment like warehouse IT, packaging, or forklifts—collectively accounted for 70% of imports from China.
Other related imports from China also saw notable growth, including chemicals and plastics (used in packaging materials and pallets), which rose 27%, and forestry and building products like wood packaging, which increased by 18%. Canada’s strong reliance on these goods reflects high demand for cost-effective and readily available logistics inputs.
Packaging materials are sourced globally, with Canada ranking as the 9th largest importer in the world. In 2024, imports included USD 171.9 million in cardboard cartons from China and significant volumes of plastic films and bags from across Asia. Pallets are primarily produced in Canada and the U.S., though North American imports of wood pallets were still worth about USD 178 million in 2024. When it comes to equipment like forklifts, Canada imports a large share from China, Japan, and Vietnam—these three countries together supply roughly 84% of the market.
Although Canada manufactures and exports some logistics supplies—such as wood pallets and paper-based packaging—export volumes are much smaller than imports. The country maintains a trade deficit in most manufactured logistics goods, making it an open and attractive market for foreign suppliers.
Overall, imports of logistics-related supplies are expected to grow, especially from Asia, due to competitive pricing. While factors like increased shipping costs, evolving tariffs, and interest in nearshoring may influence sourcing strategies, Canada’s low average import duties (0–5% on most logistics goods) and free trade agreements like CUSMA and CPTPP continue to support strong trade flows.
Major Buyers and Distributors of Logistics Supplies in Canada
Canada’s logistics supply market is driven by a diverse range of buyers across key industries, each with specific needs for packaging, equipment, and materials handling.
Third-Party Logistics (3PL) Providers & Warehousing Firms
Companies like DHL Supply Chain, Kuehne + Nagel, DSV, and Canadian-based firms such as GX Logistics and 18 Wheels Logistics manage large-scale warehousing and distribution operations. These 3PL providers purchase high volumes of packaging materials, pallets, shelving, forklifts, and safety gear to run their facilities. E-commerce fulfillment specialists like AMZ Prep and McKenna Logistics are also consistent buyers of shipping supplies and warehouse equipment.
Freight Forwarders & Transportation Companies
While freight forwarders focus on coordinating shipments, many operate storage facilities and require consumables such as pallets, cargo straps, load bars, and vehicle maintenance supplies. Major carriers like FedEx, UPS, Purolator, and TFI International invest in tracking systems, packaging materials, and securement tools to support their logistics services and fleet operations.
Retailers & E-Commerce Fulfillment Centers
Large retailers—including Walmart, Canadian Tire, Home Depot, and Amazon—are among the top buyers of logistics supplies. These businesses operate extensive warehouse and fulfillment operations, consuming vast amounts of cartons, stretch film, labels, pallets, and racking. They typically manage centralized procurement and often partner with pallet pooling services such as CHEP or PGS. Food retailers like Loblaws and Sobeys also require specialized containers and cold-chain solutions.
Manufacturers & Industrial Firms
Industrial companies across sectors like automotive, food processing, aerospace, and electronics manage their own warehousing and shipping. These firms use customized packaging, reusable containers, in-house forklifts, and safety equipment. They often participate in pallet recycling or rental programs and stock spare parts for handling equipment.
Distributors and Wholesalers
The supply chain is supported by a network of intermediaries:
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Industrial Distributors: Uline, Grainger (Acklands-Grainger), Fastenal, and Staples Business Advantage distribute a wide range of packaging, safety, and industrial products. Uline, for example, offers nationwide delivery from distribution centers in Ontario and Alberta.
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Packaging & Handling Equipment Specialists: Companies like Veritiv Canada offer packaging and facility solutions, while equipment dealers such as Leavitt Machinery and Wajax provide forklifts and parts. Wood pallets are supplied in bulk by manufacturers like Pallet Canada and regional recyclers.
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Transportation Equipment Suppliers: Distributors such as NAPA Traction and Transport Services offer trailer parts, tarps, tires, and securement gear for trucking firms and delivery fleets.
Summary
Canada’s logistics supply chain is powered by large-scale enterprises—including 3PLs, retailers, and manufacturers—alongside a network of dedicated distributors. These buyers either source directly from manufacturers or work with trusted wholesalers and B2B marketplaces. Strong business relationships and long-term procurement contracts are common, while industry trade shows and associations (e.g., Supply Chain Canada, Canadian Trucking Alliance) help connect buyers with suppliers.
Opportunities and Challenges for Chinese SMEs in Canada’s Electronics Market
Opportunities
Rising Demand and Supply Gaps
Canada's fast-growing logistics industry—driven by e-commerce, infrastructure investments, and automation—has created sustained demand for packaging, material handling, and tracking technologies. Chinese SMEs that offer cost-effective or specialized products (e.g., eco-friendly packaging or electric handling tools) can meet this need, especially where domestic supply is limited.
Competitive Pricing Advantage
Chinese manufacturers are globally known for their ability to deliver large volumes of standardized goods at lower cost. From bulk packaging and pallets to GPS trackers and sensors, SMEs offering quality at competitive prices can appeal to Canada’s price-conscious procurement managers. Low tariffs and no quota restrictions further boost the attractiveness of Chinese imports.
Innovation and Differentiation
Canadian companies are actively seeking smart logistics solutions—such as RFID-enabled asset tracking or AI-driven robotics. Chinese SMEs with innovative, tech-driven products at affordable prices (e.g., smart forklifts, biodegradable packaging) can capture attention by solving key challenges like labor shortages or environmental compliance.
Strong Trade Relationships and Diaspora Networks
Canada maintains strong trade ties with China, and many Canadian importers already have experience sourcing Chinese goods. The presence of a well-established Chinese-Canadian business community and organizations like the Canada - China Business Council offers SMEs a path to partnerships, referrals, and market insights.
Niche Market Openings
There are underserved niches within the logistics space—like custom-sized pallets, packaging for hazardous goods, or compact electric delivery vehicles. SMEs that can fill these gaps or deliver "green" alternatives (e.g., compostable wraps, recyclable containers) will find willing buyers among Canadian firms pursuing sustainability targets.
Challenges
Strong Competition from Established Players
Major brands like Uline (packaging) and CHEP (pallet rentals) have deeply entrenched supply contracts. Local suppliers often offer better delivery speed or customization. SMEs will need to overcome brand unfamiliarity and build trust through pilot programs, reference accounts, or competitive features.
Compliance and Certification Barriers
To sell in Canada, logistics products must meet national safety and quality standards. For instance, equipment like forklifts may require CSA certification and modifications before approval. Labeling must also comply with bilingual (English/French) rules. SMEs must invest in documentation, local support, and sometimes testing to satisfy buyers.
Logistics, Freight, and Distribution Constraints
Ironically, shipping logistics supplies comes with its own logistics problems. Long distances, high freight costs, and customs delays can erode margins—especially on bulky or low-margin items. Without local inventory, long lead times can deter Canadian buyers. SMEs should consider using 3PL partners or warehouse stock in major hubs like Toronto or Vancouver.
Cultural and Service Expectations
Canadian businesses value consistent service, transparent communication, and fast support. Language differences, time zones, and limited after-sales infrastructure can hurt credibility. SMEs must localize service (via reps, agents, or bilingual staff) and offer guarantees, fast response times, and simple ordering terms to earn trust.
Cost Volatility and Market Dynamics
Though Canadian tariffs are generally low (0–5% on most logistics goods), hidden costs like brokerage, testing, and internal freight (e.g., Vancouver to Montreal) add up. Currency fluctuations can also hurt competitiveness. Chinese SMEs must price with margin buffers and understand regional freight economics to remain viable.
Chinese SMEs can succeed in the Canadian logistics supply market by combining competitive pricing with targeted innovation and a local presence. Starting small—with a few high-demand SKUs and dependable distributors—can open the door to growth. Reliability, compliance, and service excellence are critical to gaining a foothold in this opportunity-rich but quality-conscious market.
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Sources:
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Mordor Intelligence – Canada Freight and Logistics Market Analysis (2025-2030)mordorintelligence.com
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eShipper (Blog) – 2024 Shipping Statistics and Trends in Canadaeshipper.comeshipper.com
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Grandview Research – Canada Warehousing Market Outlook (2024 revenue)grandviewresearch.com
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IMARC Group – Canada Packaging Market Overview (market size and trends)imarcgroup.com
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Express Pallet Collection – Canadian Wood Pallets Industry Trends 2025expresspalletcollection.comexpresspalletcollection.com
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IndexBox – North America Wood Pallet Market 2024 (imports and market value)indexbox.ioindexbox.io
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Grandview Research – Canada Forklift Market Highlights (2024 market size)grandviewresearch.com
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Global Trade Magazine/IndexBox – Top Importers of Packaging Materials (Canada’s import value)globaltrademag.com
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TradingEconomics (UN COMTRADE data) – Canada’s imports of paper cartons/boxes from China, 2024tradingeconomics.com
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CCBC – State of Canada-China Trade H1 2025 (import totals and categories)ccbc.comccbc.comccbc.com
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Canada Border Services Agency (CBSA) – Wood Packaging Material Import Requirementscbsa-asfc.gc.ca
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CJ Dropshipping (citing WTO data) – Post-Trade War Tariffs (2025)
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