What shippers require in cross-border trade is reliable US cross-border trucking providers and rail partners with a good network and knowledge about customs requirements on all sides of the border to safely transport goods. During the coronavirus pandemic, travel that is related to cross-border supply chains and logistics moves was exempted from restrictions due to economic necessity.
However, aside from the challenges posed by the pandemic, another major challenge in cross-border trade in North America is the fine print on the new United States-Mexico-Canada Agreement (USMCA). A sector that will be seriously affected by the agreement is North American auto manufacturers and their shippers including other related industries.
According to the United States International Trade Centre, Mexico, and Canada are the two largest trading partners of US manufacturers and shippers. In 2018, the amount of trade that flowed between the US, Mexico, and Canada was estimated at about $1.4 trillion. Canada and Mexico are the top two export destinations for US SME’s with more than 120,000 companies selling goods and services to their North American neighbours.
Trade with Mexico and Canada supports 12 million jobs in the US. According to the US Chamber of Commerce, at least 49 US states rely on Mexico or Canada as the top three merchandise export markets. In 1993, US agricultural exports to Canada and Mexico amounted to $8.9 billion. It quadrupled to $39 billion in 2017. At least $1.7 billion worth of goods and services flow through the North American borders every day.
During the first few months of the coronavirus pandemic, there was an immediate 15% reduction in the traffic at Laredo, Texas, where most of the US-Mexico cross-border trade takes place. Cross border shipping rates plummeted because carriers had excess capacity. Now that cross-border traffic is back to normal flow, the big issue among carriers is the removal of barriers that affect the flow of products.
The most efficient transport solutions are offered by Titan Transline to its customers. Cost-effective solutions will be suggested when planning logistical needs. Aside from the latest equipment, advanced hardware, and software technology, seamless execution of services can be expected by customers.