The United States-Mexico-Canada Agreement, a landmark free-trade pact, has been ratified by the U.S. and Mexico, with Canada expected to follow suit soon. With full ratification on the horizon, shippers can turn their attention away from navigating the potential impacts of threatened tariffs on goods moving over the U.S.-Mexico border, and refocus on ensuring the timely and efficient flow of goods across North America.
However, while the threat of tariffs has dissipated, challenges to cross-border shipping remain. U.S.-Mexico cross-border shipping has unique requirements, and therefore requires specific knowledge and capabilities to ensure smooth and efficient transit of the border.
Security and safety are the most significant concerns in cross-border shipping, and should be top of mind for any shipper that utilizes cross-border transportation. The security situation can be very fluid, and conditions on the ground can vary from day to day and from city to city.
Therefore, it’s critical for shippers to partner with third-party logistics providers who have a physical presence in Mexico. A 3PL with a local presence can deliver many benefits, including:
Personnel safety. Due to the ever-changing nature of cartel and other criminal activity in Mexico, relying on a local partner with an extensive network of contacts in law enforcement and the business world can act as an early warning system for shippers, so that they can mitigate the risk to their employees.
Cargo security and carrier compliance. Criminal activity also poses a risk to cargo itself. Shippers should seek to work with a 3PL partner that employs robust cargo-security protocols, including proven processes, rigorous carrier compliance requirements, and security devices to protect cargo.
Visibility. Visibility goes hand in hand with security. Shippers should seek out 3PL partners that can provide real-time tracking and tracing of their shipments via a web-based transportation management system. Visibility provides benefits beyond facilitating security; knowing where your shipments are can also help drive more efficient and timely deliveries, and improve relationships with end-customers.
C-TPAT. In addition, we recommend that shippers work with 3PLs that use carriers certified under the Customs-Trade Partnership Against Terrorism (C-TPAT) program. U.S. Customs and Border Protection (CBP) launched the C-TPAT program in 2001 in the aftermath of 9/11. C-TPAT is a voluntary public-private sector program for importers, carriers, consolidators, customs brokers and manufacturers. Members agree to work with CBP to “protect the supply chain, identify security gaps and implement specific security measures and best practices.” The bottom line for shippers is when you hire companies that are in the government’s C-TPAT program, you lower your risk. C-TPAT members are also less likely to be slowed down by CBP at U.S. entry points, and will often experience shorter wait times at the border.
With the expected ratification of the USMCA, shippers can expect the movement of goods to once again flow unhindered. However, security will remain a concern for the foreseeable future.
David Henry is regional manager for Mexico at GlobalTranz.
