Why You Should Consider Transportation Companies With Licensed Warehouses

by Michael Kotendzhi | Trucking, Logistics
Consider Transportation Companies With Licensed Warehouses

Having a quality product is usually the first thing on most enterprising company’s minds when they develop and start production. What some forget to consider is that if they cannot get the product to their desired location safely and reliably, then the care that went into manufacturing the goods may all be for naught.

Considering that almost all (90 percent!) of products and food are transported by truck through Canada, finding the right transportation solution for your business is of the utmost importance. Transportation companies are not all created equal. Not only do you want transportation companies with a reliable fleet of transportation units, you also may want to move shipments to a licensed warehouse, a place of safekeeping for your all-important cargo.

Once a shipment is reported, you made need to move your goods to an inland licensed warehouse. This way your product can be moved beyond borders without clearing customs, and will have a safe place to wait for customs to release it. Having licensed warehouses on offer is something to look for when investigating the right transportation companies for you.

Sufferance Warehouse

Privately owned and operated, a sufferance warehouse is licensed to store and examine imported goods for up to 40 days in some cases. This way you can get your product across the border and safely inland, while it’s still under custom’s control.

Bonded Warehouse

Bonded warehouses have the advantage of being able to hold both imported and domestic goods on a more long-term basis, for up to four years in fact. This can be extra useful if you import the goods on a consignment basis, if they’re just inventory, or if they are destined for export. If you do eventually export the goods, then duties are payable on what ends up remaining for sale in Canada.

Another benefit to choosing transportation companies with bonded warehouses is that any necessary adjustments can be made to your shipments while they reside there. This includes but is not limited to labeling and marking, re-packaging, undergoing quality checks, and disassembling or reassembling.

So, when considering transportation companies be sure to investigate whether they also offer the services of licensed warehouse storage. It may make all the difference in getting your goods safely and profitably out on the market!

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.