Abstract
Among Canadian shippers involved in Canada–USA trade, uncertainty about costs and benefits has been cited as a possible explanation for the relatively small number of them that have sought approval to participate in Free and Secure Trade (FAST), a central bilateral trade security programme between the two countries. This study addresses this uncertainty with quantitative analysis to examine the business case for an individual Canadian shipper’s participation in FAST. The study shows how a shipper’s operating parameters influence the strength of the business case. A key study finding is that unless the needless costs that carriers incur from serving non-participating shippers are passed back to those shippers, the business case is significantly weakened. The study also finds that, like cost transfers from carriers, the rate of FAST approval of competing shippers is a very powerful economic incentive for an individual shipper to subscribe to the FAST programme.
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