Navigating Cross-Border Freight

NAVIGATING CROSS-BORDER FREIGHT IN AN ERA OF UNCERTAINTY

Custom content for Averitt by studioID

INTRODUCTION

Ongoing geopolitical tensions between the United States and many of its overseas trading partners have left many companies uncertain about their existing supplier relationships. As U.S. shippers seek to mitigate rising costs and improve supply chain resiliency, many have begun exploring sourcing options closer to home. As a result of these nearshoring efforts, the demand for cross-border freight services has increased significantly, as U.S. businesses establish new supplier relationships in Mexico and Canada. A successful border crossing takes more than trucks and a few signed forms, however. While many carriers, brokers and logistics companies claim they can move shipments across the border, it’s extremely important that shippers vet potential partners. U.S. companies should seek to work with carriers and logistics providers that possess the expertise, experience, and established infrastructure necessary to handle the risks associated with cross-border transportation, including cargo theft attempts, driver issues and a continually evolving series of regulations and policies. In this playbook, we’ll explore best practices for building a resilient cross-border transportation strategy through the establishment of strong carrier partnerships. We’ll discuss some of the reasons cross-border freight has become more volatile, common problems shippers experience when transporting freight across borders, and what to look for in carrier partnerships on both sides of the border.

2

VOLATILITY IN CROSS-BORDER LOGISTICS

While core industries such as automotive and agriculture remain the primary drivers of cross-border activity, nearshoring activity has also begun to impact freight volumes between the three countries, as U.S. businesses continue to decouple from China and relocate assets closer to home. Yet, this surge of demand is being tempered by a wave of uncertainty among business leaders and decision-makers, as rapidly shifting tariff mandates, language proficiency mandates for drivers, evolving visa requirements, rising cargo theft and other factors make it extremely difficult to properly plan for the future. In the face of this uncertainty, cargo owners must also deal with chronic border congestion — an issue that is further compounded by a three-to-one imbalance in trailer flows, as significantly more shipments enter the U.S. than leave it. Navigating this level of volatility requires that shippers work with highly experienced brokers and carriers that understand how to manage changing conditions and processes for safe and successful border crossings.

“The issue of the uncertainty is keeping people from actually being aggressive because they don’t know what tomorrow’s going to be. So, how can you really make a big change today when tomorrow could be totally different than what you’re expecting?” ED HABE Vice President of Mexico Sales for Averitt

3

WHAT CAN GO WRONG WITH CROSS-BORDER SHIPMENTS

“There’s a lot of confusion in general on just what’s required, especially with the changing rules. More than ever, shippers need partners that have dedicated resources to help them navigate the fluctuations within cross-border logistics.” ED HABE Vice President of Mexico Sales for Averitt

LIMITED SHIPMENT VISIBILITY

Whether a shipment is moving between Mexico and the United States or between the United States and Canada, countless potential issues can arise. Thinking of border crossings as a simple checkpoint on the shipment’s journey can lead to days of costly delays and compliance issues that will quickly ripple through your supply chain. Customs compliance has become increasingly complex among USMCA participants in recent years, with goalposts constantly moving regarding what’s required when a truck reaches a border checkpoint. Tariffs, de minimis limits and classification codes have all been in a state of constant flux in 2025, creating as much chaos for Customs & Border Patrol agents as it has for cross-border shippers. Responding to ever-changing regulations makes carrier and broker selection essential for shippers. Beyond changing duties and paperwork, there are other risks associated with cross-border transportation that a reputable carrier partner can help mitigate. Some of these include:

Not all carriers offer the visibility that shippers need to adjust operations when a shipment is held up at the border. These delays quickly have downstream impacts: production schedules are disrupted, sales are lost, and customer relationships are strained. “If you don’t really know what’s happening in Mexico, you’re going to have problems.” HOMERO GONZALEZ General Director at Mexico-based carrier Central de Fletes To gain this visibility, shippers need to work with providers that can offer real-time tracking, GPS data, communication tools and bilingual support teams to ensure issues are discovered and resolved before they can ripple downstream.

4

RISING CARGO THEFT

Cargo theft is becoming a significant problem for shippers and carriers across North America, as thieves become more sophisticated and diligent. There were 884 theft incidents in the United States and Canada in the second quarter of 2025, a 13% jump from the same period a year earlier. 1 In Mexico, 65% of thefts occur while shipments are in transit, while 34% happen at unsecured parking locations. 2 “In the past, it may have been more targeted. The goal was always to grab cargo they could sell pretty quickly. Now, it seems a little more random. They’re just grabbing what they can because the number of people stealing and hijacking is going up.” ED HABE Vice President of Mexico Sales for Averitt Experienced cross-border carriers should know how to combat cargo theft effectively and know which areas carry the most risk. For example, Averitt may send trucks out in convoys instead of alone to reduce risk, and also employ armed escorts on high-risk routes.

“Cargo theft has been an ongoing issue in Mexico for many years, but our team has developed a whole playbook to combat the threat. Cargo thieves use jammers, so we have three GPS devices per tractor and one per trailer in different frequencies, making it harder to lose the information. We use AI to tell us if a trailer is being unhooked. It shuts down the engine so you can’t hook up and engages magnetic locks, so they won’t be able to open it. Now, they just look at our trailers and say: ‘It’s too much, let’s go for another company.” HOMERO GONZALEZ General Director at Mexico-based carrier Central de Fletes

1 “2025 Second Quarter Supply Chain Risk Trends Analysis,” CargoNet, https://www.cargonet.com/news-and-events/cargonet-in-the-media/2025-q2-theft-trends/ 2 “Mexico Q2-2025 Cargo Theft Report,” Overhaul, https://over-haul.com/mexico-cargo-theft-report/

5

DRIVER CLASSIFICATION RISKS

LACK OF FACILITIES ON BOTH SIDES OF THE BORDER

B-1 visa drivers are authorized to transport loads across the border and deliver them to their destination in the U.S. They may also pick up a load in the U.S. and return it across the border to their home country. The intent is for B-1 drivers to provide door-to-door service from Mexico to the U.S. (or vice versa). However, bottom-dollar carriers may attempt to circumvent the rules by having B-1 drivers transport a load to a border point, such as Laredo or San Antonio, rather than actually moving it across the border. Since both points are within the U.S., this is considered cabotage and doesn’t fall within the terms of the B-1 visa. Since B-1 visa drivers entering from Mexico are cheaper, this helps carriers cut costs.

Many carriers don’t have their own assets on either side of the border, so they must rely on third-party agreements, which adds unnecessary complexity to the supply chain, drives up costs that are passed on to the shipper and creates more risk by introducing additional touchpoints for shipments. Having warehouses, cross-docks and drop lots on both sides of the border helps carriers and logistics providers minimize the impact of many issues that cause delays and border congestion. “Some people are dealing with four or five vendors. Why do that when you can just deal with one? A northbound LTL load clears customs when leaving Mexico, so there’s no need for a shipment to touch a third-party warehouse. The Mexican drayage driver can bring it directly to our warehouse, where we cross-dock it and send it on. Something that simple can shave off a couple of days.” ED HABE Vice President of Mexico Sales for Averitt

These issues are further complicated by evolving rules around English Language Proficiency (ELP) for drivers operating in the United States.

“Some Mexican carriers are having to park trailers because they don’t have enough ELP-qualified drivers to put on the road. Based on the enforcement so far, Mexican-based carriers operating in the U.S. are actually hiring U.S. drivers in place of B1 drivers.” ED HABE Vice President of Mexico Sales for Averitt

6

STREAMLINING CROSS-BORDER OPERATIONS THROUGH BEST PRACTICES AND BETTER PARTNERSHIPS

“We have a lot in China today, but we’re moving that. We’ve been working profusely to begin onshoring, and a lot of that is going into Mexico.” SANDRA BOHANNON Director of Supply Chain at Rebo

For many business leaders, the volatility and risk associated with cross-border shipping may seem like an unavoidable part of doing business. However, it’s possible to mitigate many of the challenges involved with moving goods across borders if you have access to the right infrastructure and expertise. Rebo Lighting & Electronics, a U.S.-based developer and supplier of automotive lighting systems, learned this lesson firsthand when it first began working with suppliers in Mexico and had to build a cross-border strategy.

7

THE PROBLEM DELAYS AND UNCERTAINTY AT THE BORDER

As Rebo started working with Mexican suppliers as part of its nearshoring strategy, getting those goods across the border became problematic. Shipments quickly got tangled up due to customs delays, paperwork errors and broker mishaps. “You know that old adage of ‘you get what you pay for?’ We had shipments stuck at the border, literally sitting for over a week. The program was behind schedule from day one, and the last thing we needed was carrier and broker delays on top of that.” SANDRA BOHANNON Director of Supply Chain at Rebo

These issues at the border were more than just an inconvenience. The downstream impact on production schedules and customer relationships resulted in cost increases that threatened the viability of the company’s new nearshoring strategy.

8

The Averitt team also gave Rebo the real-time visibility it had been missing. Shipment tracking tools and a responsive account team gave Bohannon and her colleagues more confidence that freight would arrive as planned. On the occasion that something did go wrong, Averitt’s capabilities to expedite shipments via other modes ensured that critical parts and components still arrived on time. Averitt’s added security protocols and end-to-end owned infrastructure also minimized unnecessary handoffs. By leveraging cross-docks, warehouses, and vetted partners on both sides of the border, Averitt streamlined Rebo’s cross-border journey, eliminating delays and weak points in the process. “We have good transparency now on all modes, which helps us have confidence that our shipments are going to make it across the border.” SANDRA BOHANNON Director of Supply Chain at Rebo “I did nothing but sit back. I had shipments in 48 hours that had previously taken me a week and a half of transportation time.” SANDRA BOHANNON Director of Supply Chain at Rebo

THE SOLUTION A BETTER PARTNER WITH BETTER PRACTICES

To get its cross-border strategy on track, Rebo reached out to Averitt. The Averitt team began working on documentation that night to prepare for their next shipment, using Averitt as the broker.

“Before, we could not get a truck across. We went from sitting at the border for 40 hours to coming across the same day. I can’t even begin to tell you the difference in having that partnership with Averitt. I have all the respect in the world for how they jumped in immediately and knew exactly what to do.” SANDRA BOHANNON Director of Supply Chain at Rebo

Averitt took much of the planning out of Bohannon’s hands, working directly with the supplier and the supplier’s broker to bring freight into Averitt’s partner network and get it safely to Rebo in the U.S.

9

THE RESULT FASTER BORDER CROSSINGS AND BETTER SUPPLY CHAIN RESILIENCY

With Averitt as a key partner, pickups have become routine and freight consistently arrives on schedule, allowing Rebo to stabilize its production schedule and keep its own promises to customers.

“I’m no longer shutting my line down, and that was key for us. Even if we must pay a little more, that reliability has been huge for us. I can schedule my line knowing that Averitt will arrive when they say they will. You can’t really put a price on that.” SANDRA BOHANNON Director of Supply Chain at Rebo

10

TURNING VOLATILITYVOLATILITY INTO RESILIENCY

Cross-border shipping will always have some level of uncertainty, but volatility doesn’t have to mean disruption. Shippers that invest in trusted partnerships can ensure their freight continues to move, even when unpredictable market trends and shifts make that movement more challenging. Tired of your shipments getting stuck at the border? Learn more at Averitt.com/Cross-Border, or contact our Cross-Border Team at 1-866-249-8496 or cross-border@averitt.com

11

Serving shippers for over 50 years, Averitt is a leading provider of freight transportation and supply chain management solutions with an international reach of over 100 countries. Averitt's “Power of One” service structure provides shippers access to LTL, Truckload, Dedicated, Distribution & Fulfillment, and Integrated services that cover every link in the supply chain. Averitt’s team has been awarded the highest honors in the industry in the past year, including three Quest for Quality Awards, numerous customer awards, and a top ranking in MASTIO & Company’s shipper survey. Averitt's 8,000+ associates are dedicated to delivering the most reliable services within the industry and promoting a company culture centered around people, communities, sustainability, and giving back.

For more information, call 1-800-AVERITT (283-7488) or visit Averitt.com.

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

Made with FlippingBook Online newsletter