Shipping is often the least expensive way of moving large quantities of goods over long distances. The existence of reliable water transportation has been a key to the economic and political well-being of most nations throughout history. For example, the merchant fleet of Great Britain during the Industrial Revolution was instrumental in the growth of that nation as a world power. Shipping services have always been an economic lifeline for Canadians. For the first settlers, ships were the source of essential supplies from the Old World, and they provided the means by which fur, agricultural, forestry and mining products could be marketed. In eastern Canada, especially in the Maritimes, a tradition based on SHIPBUILDING, fishing and trade flourished. .

In 1840 Samuel CUNARD of Halifax established a transoceanic service that developed into the world-famous CUNARD COMPANY, and by 1878 Canada ranked fourth among the shipowning nations of the world. However, in the last decades of the century, Canadian participation in shipbuilding and shipping diminished, as steel and engineering skills, which Canada lacked, became prerequisites for a successful shipbuilding industry. The 2 world wars caused temporary booms in shipping under the Canadian flag, but since 1949, when the Canadian government decided to sell off its Canadian-registered fleet, the vast majority of Canadian overseas trade has been carried in ships registered in other countries. Most Canadian-registered ships now operate on domestic routes, such as the ST LAWRENCE SEAWAY, the Great Lakes and the coastlines.