Although the countries in North America ship goods to the rest of the world, cross-border shipping among them has proven more critical, creating jobs across the United States, Canada, and Mexico, boosting their economies, and enabling integrated supply chain operations.
However, despite its importance, cross-border freight shipping does come with challenges. Understanding these problems can help ensure seamless transportation across borders. Failure to do so will almost guarantee problems, leading to supply chain disruptions, among other things.
In this article, we will delve into the everyday challenges shippers and supply chains face during cross-border shipping and how LGI, a logistics provider with extensive experience, manages to navigate these problems. LGI handles a substantial volume of cross-border loads monthly, with a diverse range of 35% being over-dimensional, mixed with dry van and reefer, showcasing their expertise in the field.
Understanding Cross-Border Shipping Challenges
Cross-border shipping significantly benefits businesses aiming to enhance production and optimize output. However, it operates across countries with distinct laws and policies. This subjects businesses and their supply chains to multiple regulations and local challenges, such as security issues, which must be navigated seamlessly to achieve success. Some of these challenges include:
1. Regulatory Compliance
Despite their proximity, each country is unique. Each has its own set of rules regarding the types of goods that can be imported, safety standards, and labeling requirements, making it essential for shippers to be well-versed in these regulations. This means shippers must spend considerable time and resources understanding what each country requires and then finding the balance to ensure the seamless movement of goods.
There are standard regulations, especially regarding safety, but there are also unique regulations, such as sustainability. Failure to comply with one country’s rules can disrupt the entire flow of goods, even if you are well prepared for the other country’s regulations. It could lead to potential delays, fines, and legal complications.
2. Inaccurate or Incomplete Documentation
Documentation is a significant aspect of shipping and transportation, especially cross-border shipping operations. These countries want standard trade documentation such as commercial invoices, bills of lading, and certificates of origin. Some require much more extensive and robust documentation than others, and some may require unique documentation.
Shippers eager to take advantage of cross-border shipping must be able to carefully navigate this problem by ensuring complete documentation before the shipping process begins. They may have stringent customs regulations, but failure to comply with them will only lead to the possible confiscation of goods or unnecessary delays at the borders. Questions in the documentation must be addressed. Failure to do so will attract more scrutiny.
3. Complex Logistical Hurdles
Cross-border shippers will struggle without proper infrastructure and a conducive environment. For instance, poor roads and port management will lead to unavoidable delays that could impact or disrupt the logistics operation. These disruptions often have ripple effects that could spread across other business operations. This is where technology solutions like route planning and optimization become a necessity. They allow shippers to avoid potentially problematic areas.
With complex logistics hurdles, the logistics operation is typically exposed to potential vehicle breakdowns and border delays, leading to increased transit times, higher costs, and unpredictability.
4. Safeguarding Cross-Border Shipments
Cargo theft has been a major concern for shippers, and businesses must continue to invest in safeguarding their cargo, especially during cross-border freight shipping. Criminals often target freight while in transit, making it essential for shippers to implement robust security measures such as GPS tracking and route planning and hiring trustworthy carriers.
One key strategy for safeguarding cargo is procuring comprehensive insurance coverage. Adequate insurance coverage will help protect the cargo and provide peace of mind for stakeholders throughout the entire cross-border shipping process.
Here are some of the reasons to ensure shipments are effectively safeguarded:
- Safety: Prevent accidents and injuries.
- Damage Prevention: Avoid financial losses and supply chain disruptions.
- Compliance: Adhere to regulations and avoid penalties.
- Cost-efficiency: Minimize damage and ensure timely delivery.
- Reputation: Enhance customer trust and brand image.
5. Managing Tariffs and Duties
Changes in tariffs and trade policies, such as the transition from NAFTA to USMCA, can create uncertainty and affect shipping costs across borders, especially with the change of administrations. This uncertainty also can lead to poor delivery times. Getting ahead of this will necessitate staying informed and establishing credible relationships, allowing firsthand access to information that could impact shipping operations even before the public is aware. Knowing how the tariffs affect the specific industry will also enhance the shipper’s ability to navigate them.
LGI’s Approach to Overcoming Cross-Border Shipping Challenges
LGI is a logistics provider with ample presence across the United States, Mexico, and Canada. The company has operated for more than two decades and has spent all that time building up resources, infrastructure, expertise, and experience to provide seamless freight management and cross-border shipping services for its clients.
But how does LGI overcome all the cross-border shipping service challenges?
1. Seamless Documentation and Compliance
Successful cross-border shipping service requires strict adherence to customs regulations and documentation requirements. Any oversight in compliance can result in delays, penalties, and potential disruptions to the supply chain. This is why LGI’s compliance experts stay abreast of the latest customs regulations, ensuring that each shipment adheres to all requirements. LGI ensures all paperwork is accurate and complete by providing comprehensive documentation support and navigating customs processes smoothly. This way, shippers are guaranteed seamless cross-border transit for shippers.
2. Efficient Customs Procedures
Over the years, LGI has built strong relationships with customs brokers that help facilitate clearance before our trucks get to the border. We work with these brokers to ensure proper and complete documentation and implement and integrate the latest information and policies into the transportation process to avoid delays. With these brokers, LGI ensures that the cargo always moves seamlessly between borders without any challenges, such as delays and additional scrutiny.
3. Advanced Logistical Support
With ample investment in one of the best logistics networks and infrastructure, LGI ensures that the goods continue moving until they reach their final destination. That means there is no room for delays due to vehicle breakdowns or poor infrastructures such as bad road networks. We leverage robust technology solutions like GPS and telematics to support all drivers and trucks with remote monitoring, tracking, and route optimization. Whether with reefer or dry van shipping, our vehicles and facilities have state-of-the-art equipment to ensure seamless cross-border shipping services.
4. Security and Visibility
LGI also leverages security and communication tools to enhance visibility across the cross-border shipping process. One such tool is Highway & Front, which allows LGI to prevent and carefully monitor fraudulent activities. Using Highway & Front, LGI can scan every incoming email, move suspicious emails to a quarantine inbox, and quickly decide on their legitimacy. This saves significant time and ensures our operators focus on building relationships and improving the company, not worrying about fraudulent activities.
Our approach includes setting up workflows for different types of alerts — identity alerts, fraud alerts, and spoof warnings — allowing the company to manage and review each case efficiently. With visibility tools like the Internet of Things, the company can also promote and streamline communication across the board.
5. Optimizing Transportation Modes
LGI works with a host of carriers across various modes of transportation. This allows the company to leverage any of them to navigate situations that might otherwise have troubled clients and customers that require our cross-border shipping service.
Ship Cross-Border With LGI
Cross-border shipping service allows businesses to continue expanding their product reach and, in some cases, take advantage of operational benefits such as reduced labor wages. That includes setting up a manufacturing plant in Mexico and shipping the products back to the United States. However, with that advantage comes certain risks, like complex customs regulations, potential delays, and security concerns. That is why LGI is critical for your shipping operations. We leverage our team of experts, resources, and relationships to ensure your goods continue moving seamlessly across countries. Request a quote today.
