Why did the 1821 merger of fur-trade companies reduce Montreal’s role in the fur trade?

The 1821 merger between the North West Company and the Hudson’s Bay Company significantly reduced Montreal’s role in the fur trade primarily due to economic efficiency.

Following the merger, the new entity determined that it was considerably less expensive to ship furs via Hudson Bay rather than maintaining the traditional, labor-intensive system of canoe convoys that had operated out of Montreal for nearly two centuries. Consequently, these long-distance canoe expeditions from Montreal to the western interior were terminated, effectively ending the city's status as the primary entrepôt for the fur trade.12

While this shift marked the end of Montreal's dominance in the fur industry, it did not hinder the city's overall development. Montreal successfully transitioned its economic focus toward becoming a major transportation and manufacturing hub for timber, agricultural produce, and other industrial goods.1