The grass is said to be greener on the other side of the fence, but in terms of shipping this is certainly not the case for goods going to Mexico. Cross-border shipping has inherent risks that often cannot be avoided. Different rules and regulations on the fly, it’s best to equip your business with partners who know the ins and outs of shipping on both sides of the border.
Mark Vickers, executive vice president of international logistics at Reliance Partners, partnered with Troy Ryley, president of Redwood Mexico, to share best practices to improve cross-border trade and risk management.
This last point should be addressed first when considering operating across the southern border of the United States. It goes without saying that safety remains the primary concern of carriers in Mexico, especially in its central and western regions.
More than 5,000 cargo thefts were reported in Mexico in the first half of 2021 alone. According to Mexico’s National Public Security System, the most frequently stolen items include food and beverages, clothing and shoes, auto parts, steel, tires and alcoholic beverages.
This poses security risks directly to carriers, but shippers themselves can also suffer, at least financially. Vickers has discussed this in previous articles with FreightWaves, comparing Mexico’s freight insurance requirements to those of the “Wild West.”
Keep in mind that carrier liability in Mexico is almost non-existent, as carriers are not required to provide coverage for shipments, leaving shippers liable for damage. Consider this: US-based motor carriers can be held liable for up to $ 1 million in freight loss, while Canada-based carriers have a maximum liability of $ 2 per pound of freight. In contrast, Mexico only requires carriers to be responsible for $ 0.025 for each pound transported.
It is for these reasons that Ryley urges shippers to use cross-border insurance to mitigate risks south of the border. While beneficial, preventative measures such as carrier checks, trailer tracking technology, and increased facility security are only effective to a limited extent.
“Villains are smart,” Ryley said. “They have jamming units; we have seen jamming units that actually jam the signal of any type of tracking device, whether inside or outside the vehicle.
He explained that it is difficult to transfer the risk of theft when it is rampant across the country. Additionally, Ryley said it can be very difficult to recover stolen assets.
“Reliance Partners has been a fantastic partner, providing us with quick, accurate, timely and responsive quotes,” said Ryley. “We feel very comfortable recommending them to our major clients, the Fortune 500 companies when we need this type of coverage. “
Borderless Coverage provided by Reliance Partners provides cross-border freight insurance for the price of only a fraction of the value of the shipment. Not only is it relatively inexpensive, but the coverage extends to domestic and international shipments of all varieties.
US shippers have found it incredibly easy to deploy each of their loads in Mexico using Borderless Coverage’s shipper interest-based insurance coverage due to its ability to provide full or partial all-risk coverage for their shippers. produced in Mexico and around the world.
“We created Borderless Coverage specifically for shippers, brokers and carriers who needed Mexican cargo insurance; However, we’ve built it on an international platform, so you can get pickup-to-delivery coverage anywhere in the world, ”Vickers said. “Our number one use case is Mexico because of all the uncertainties Ryley discussed. “
With the right coverage in place, shippers can enter the Mexican market with confidence, giving them more time to improve their cross-border operations. The growing need for even greater digital logistics has, in turn, driven many shippers and carriers to Redwood.
The border affects maritime transport in many ways other than security. Differences in regulations and business practices, not to mention language and culture, often cause headaches for shippers.
“I called it a black hole for years,” Ryley said. “The problem is, you have so many points of contact, including US and Mexican carriers, fulfillment agents, US and Mexican customs brokers, Mexican freight forwarders, and point-of-origin shippers, that nobody was able to meet. . This is what we do in Redwood.
Redwood’s technology suite provides users with trucking visibility into US and Mexican carrier operations. This suite includes LoadRunner TMS and its Intuitive Logistics Platform as a Service (LPaaS), which offers plug-and-play logistics technology and freight services to meet your cross-border needs.
“We can connect anyone to anything,” said Ryley, describing his open logistics ecosystem, which offers both real-time digital logistics and 3PL services, as well as platform services for implement and integrate your data supply chain.
“We are incorporated in Mexico and the United States and are fully functional as a cross-border truck brokerage business,” said Ryley. “Redwood also manages US-Mexico customs brokerage as part of our operations, warehousing distribution, and many other services, including technology solutions. “
Vickers said the best way for global shippers to access all-risk shipper insurance in Mexico is through their major freight brokers like Redwood. “It’s great to have a partner like Redwood who understands the technology associated with visibility and the technology now associated with cargo insurance. “
Click for more FreightWaves content by Jack Glenn.
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