In this article, we will guide you through the intricacies of international freight shipping, providing valuable insights and tips to help you navigate this dynamic industry.

What is international freight?

International freight is transporting goods across borders from one country to another. It plays a crucial role in global trade and commerce, allowing businesses to reach customers worldwide and expand their markets. International freight can be transported via various modes such as air, ocean, road, or rail.

How does international freight work?

International freight shipping involves coordinating various parties, including shippers, carriers, customs agents, and receivers. It encompasses several stages: documentation, customs clearance, cargo handling, transit, and final delivery. Each stage presents unique challenges that require careful planning and execution to ensure a smooth and efficient shipping process. Below, we dive into each stage and the common processes involved.

1. Export haulage:

The journey begins with export haulage, moving the freight from its origin to the nearest warehouse, port, or facility. This includes:

• Shipment Planning: Optimizing routes and transport methods for efficiency.
• Loading and Handling: Ensuring goods are securely packed for transit.
• Drayage: Employing local trucking to move the cargo to the initial loading dock.

2. Export Customs Clearance:

As the freight reaches the border, export customs clearance is necessary to comply with international regulations before departure:

• Documentation Preparation: Gathering all necessary shipping and customs documents.
• Customs Brokerage: Using professional brokers to navigate complex customs procedures.
• Duties and Taxes: Handling financial obligations related to export.
• Security Inspections: Ensuring cargo meets all export security standards.

3. Transportation:

Following successful customs clearance, the transportation phase starts, varying by selected logistics options and customer preferences:

• Mode Selection: Deciding whether air, sea, or land transport suits the shipment’s needs.
• Freight Consolidation: Merging smaller loads for economic efficiency.
• Carrier Management: Coordinating with carriers to guarantee timely delivery.
• Safety Measures: Securing the freight against tampering and loss during travel.

4. Import Customs Clearance:

Upon arrival at the destination country, import customs clearance must be handled to ensure the freight complies with local laws:

• Import Licensing: Securing permits required for importation.
• Tariff Payment: Calculating and paying necessary tariffs.
• Regulatory Compliance: Adhering to local standards for safety and quality.
• Document Verification: Providing necessary documentation for customs checks.

5. Import Haulage:

The final step involves import haulage, moving the freight from the border to its ultimate destination:

• Last Mile Delivery: Planning the last segment of delivery to ensure prompt arrival.
• Unloading: Managing the offloading process at the final stop.
• Delivery Confirmation: Confirming that all goods have been received in proper condition.
• Post-Delivery Support: Addressing any subsequent issues and maintaining customer satisfaction.

Tracking your international shipment

To track your international shipment and gain visibility into its progress, there are several steps Shipper’s can take:

• Obtain the tracking number: Upon booking your shipment, the freight forwarder or carrier will provide you with a unique tracking number, such as a Bill of Lading (BOL) number for ocean freight or an Air Waybill (AWB) number for air freight.
• Check with your freight forwarder: Your freight forwarder should have access to the latest information on your shipment’s status. They can provide you with updates on customs clearance, departure and arrival times, and any potential delays.
• Use online tracking tools: Many carriers and freight forwarders offer online tracking tools where you can enter your tracking number to get real-time updates on your shipment’s location and status.
• Monitor port and terminal information: Keep an eye on the status of the ports and terminals involved in your shipment’s journey. This information can help you anticipate any potential delays due to congestion or operational issues.
• Set up automated alerts: Some tracking systems allow you to set up automated alerts via email or SMS, notifying you of key milestones in your shipment’s journey, such as departure from origin, arrival at destination, and customs clearance.

With Uber Freight’s TMS, shippers can easily track international shipments and streamline logistics. We integrate data from 40+ sources, covering 99% of global shipments. Our user-friendly TMS software provides detailed, real-time visibility without any complex setup.  Our TMS platform offers additional benefits like optimizing routes, consolidating loads, and simplifying documentation.

Transportation modes for international shipping

One of the keys to successful international freight shipping is choosing the best methods for a shipper’s specific needs.

Air freight

Air freight is the quickest way to transport goods internationally, making it suitable for time-sensitive shipments. It involves loading cargo onto an aircraft and flying it to its destination. Air freight can be expensive compared to other modes of transportation but offers fast transit times and reliable delivery.

• Speed: Air freight is the fastest shipping method for international shipments. It’s ideal for perishable goods or emergency deliveries.
• Efficiency: Due to airlines’ strict schedules, air freight can often provide accurate arrival and departure times.

Ocean freight

Ocean freight is the most commonly used method for international shipping, especially for large and heavy cargo. It involves loading cargo onto a ship and transporting it across the ocean to its destination. Ocean freight is more cost-effective compared to air freight but offers longer transit times.

• Cost-effective: Ocean freight is generally more affordable than air freight, making it ideal for large and heavy shipments.
• Eco-friendly: Ocean freight is a more environmentally friendly option compared to air freight, as it has a lower carbon footprint.

Rail freight

Rail freight is a popular option for international shipping, especially for goods traveling between neighboring countries or continents. It involves loading cargo onto specially designed railcars and transporting it across land to its destination. Rail freight offers cost-effective rates and relatively fast transit times.

• Reliability: Rail freight has fixed schedules and routes, making it a reliable option for long-distance shipping.
• Cost-effective: Rail freight is often more cost-effective than road or air freight, and it can handle larger volumes than air freight.

Intermodal freight

Intermodal freight is a transportation method that involves using multiple modes of transport, such as ships, trains, and trucks, to move goods from one point to another. This approach allows for the efficient and cost-effective transportation of cargo over long distances, combining the strengths of various modes of transport.

• Flexibility: Intermodal freight offers flexibility in routing and scheduling, allowing for the optimization of transit times and costs based on the specific needs of the shipment.
• Efficiency: By utilizing the most suitable mode of transport for each leg of the journey, intermodal freight can minimize handling and reduce the risk of damage to the cargo.
• Cost-effective: Intermodal freight can be more cost-effective than relying on a single mode of transport, as it allows for the consolidation of shipments and the use of the most economical mode for each segment of the journey.
• Environmental benefits: Intermodal freight can reduce the overall carbon footprint of the transportation process by leveraging more environmentally friendly modes of transport, such as rail or sea, for the majority of the journey.

Intermodal freight, with the help of drayage services, is particularly useful for international shipments that require the movement of goods across multiple countries or continents.

Key participants in international freight

Various parties are involved in international freight shipping, each playing a crucial role in ensuring the smooth transportation of goods across borders.

OTI (Ocean Transportation Intermediary)

OTIs are ocean transportation intermediaries licensed by the Federal Maritime Commission (FMC), which include Non-Vessel-Operating Common Carriers (NVOCCs) and Ocean Freight Forwarders (OFFs).

NVOCC (Non-Vessel Operating Common Carrier)

NVOCCs, or Non-Vessel Operating Common Carriers, play a crucial role in international freight shipping. They act as intermediaries between shippers and carriers, providing ocean shipping services by leasing space from vessel operators. Unlike traditional freight forwarders, who also offer air and land transportation services, NVOCCs specialize in ocean freight. They handle all the necessary paperwork and documentation for shipping goods internationally, making it easier for shippers to navigate complex customs regulations, but do not operate the vessels by which they transport.

OFF (Ocean Freight Forwarder)

OFFs are freight forwarders located in the US that specialize in ocean freight. US ocean freight forwarders are licensed by the Federal Maritime Commission to offer services such as arranging ocean transportation from the US to foreign destinations, booking cargo space, consolidating shipments, preparing documentation, and performing other related activities for such shipments on behalf of shippers.

International freight forwarders

Freight forwarders are companies that help businesses arrange transportation for their goods. They can handle all aspects of the shipping process, from coordinating with carriers to managing documentation and customs clearance. Freight forwarders act as an extension of the shipper’s logistics team and often have established relationships with different carriers to secure competitive rates for their clients.

Customs brokers

Customs brokers are licensed professionals who assist importers and exporters in navigating complex international trade regulations and customs procedures. They work closely with customs officials to ensure that necessary documents are filed correctly, duties and taxes are paid, and goods are cleared for entry into the country.

As part of our comprehensive international shipping services, Uber Freight operates as an OTI, NVOCC, OFF, and customs broker.  This diverse range of services ensures that we help shippers simplify their shipping operations.

International freight shipping with Uber Freight

Uber Freight can help keep your supply chain seamlessly moving across the border regardless of your transportation method. Our international transportation management team offers a tailored freight management solution that aligns perfectly with your business objectives.
Our international shipping services include:

• Global transportation management
• Freight forwarding (NVOCC, OTI, OFF)
• Customs brokerage and compliance
• Ocean and air freight
• Customized drayage
• Operations technology integration
• Ocean and air tracking and visibility
• Procurement and benchmarking

Recognizing the uniqueness of each customer, our team of CTPAT-certified, multilingual international logistics experts, which includes licensed custom brokers and import/export specialists, focus on crafting a personalized, technology-driven solution. Dedicated account teams seamlessly execute your day-to-day global transportation and compliance needs.. Connect with an expert today!

FAQs

How do international freight forwarding companies work?

International freight forwarding companies act as intermediaries between shippers and carriers, helping businesses arrange transportation for their goods across borders. They handle all aspects of the shipping process, including negotiating with carriers, managing documentation and customs clearance, and ensuring timely delivery of goods.

What is the difference between international freight and cargo?

International freight refers to the transportation of goods between countries, while cargo refers to the actual goods being transported. International freight encompasses various methods of shipping, such as air, ocean, and rail freight. Cargo can include anything from consumer goods to raw materials being shipped internationally.  So essentially, international freight is the process of moving cargo across borders.

How much does international freight shipping cost?

Determining international freight shipping costs is complex and varies based on transportation mode (air, sea, rail, road), cargo weight, dimensions, goods type, and distance. Factors like tariffs, customs fees, and service charges on specific routes impact pricing.

How long does international shipping take?

The transit time for international freight shipping depends on the mode of transportation chosen, the origin and destination countries, and other factors such as customs clearance. Air freight is generally the quickest option, with transit times ranging from 1-7 days, while ocean freight can take anywhere from 10-60 days. Rail freight falls somewhere in between, with an average transit time of 15-20 days.

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More than 80% of the world’s international trade occurs via ocean freight. With hundreds of thousands of containers spread across various ships and routes, shippers who work with ocean carriers need to know where their shipments are at all times. Without visibility, cost and service can suffer: companies might not know whether shipments will arrive late or early, and may have to pay fines as a consequence.

Visibility isn’t just about peace of mind: when supply chains become volatile, companies must know where their containers are so they can manage exceptions proactively and reduce detention and demurrage. Accurate and timely visibility helps shippers stay ahead of potential disruptions and could save thousands or even millions on unexpected costs.

This is especially relevant at a time when ocean transportation has been defined by global crises. In the Red Sea—home to 12% of annual global trade—ongoing military standoffs have endangered commercial shipments and caused extensive delays in transport journeys as the crisis forces companies to invest in alternative routes and modes. Meanwhile, across the globe, droughts in Panama have precipitated severe limits on canal traffic. 

The Uber Freight team continually works to deliver next-generation visibility for logistics teams and help them better navigate these types of events. Our latest technology expansion is specifically tailored to help companies that utilize ocean and air transportation stay ahead of the tide by gaining accurate, real-time insights. New features within the Uber Freight Transportation Management System (TMS) allow users to connect seamlessly with ocean and air shipment data—meaning logistics teams can access comprehensive, real-time visibility for all shipments across modes in one easy-to-use platform.

Creating accurate, real-time visibility into 99% of ocean shipments 

Last year, our updates to Uber Freight TMS gave shippers unprecedented visibility via the Control Tower module, which provides a 360-degree view of all shipments. While our team offers ocean execution as a managed services partner, this new update brings visibility into the TMS for those who wish to maintain direct relationships with ocean carriers and international third-party logistics providers. Now, within the Control Tower, logistics teams can use the map tool to visualize all shipments, filter by mode, and pinpoint shipments for rerouting.

The module also eliminates the need for logistics teams to manually track their loads on carrier websites or through freight forwarders, and instead offers a more streamlined and efficient experience. According to container tracking API provider Vizion, this global solution covers 99% of ocean shipments by gathering continual shipment updates from more than 40 data sources. Using API-based freight tracking software, the solution can produce updates every 15 minutes for more accurate and timely information.

The updates also leverage automation to make it easier than ever for users to access real-time insights for their ocean and air freight. Often, shippers assume they need to get their list of carriers and perform individual integrations with each. The new update allows the TMS to seamlessly and automatically import real-time data into the Uber Freight platform. Logistics teams unlock unprecedented transparency without the hassle of manual integration, resulting in an instant-on solution. And getting started is simple and straightforward, leveraging just a few pieces of ocean data to gain automatic updates on shipment progress.

Because the Uber Freight TMS updates continually with location breadcrumbs tracked after each update, teams can monitor situations as they develop and determine whether alternative routes or ports need to be considered. We’ve seen users quickly pivot timely shipments from ocean to air freight to reduce delays, and secure cargo insurance coverage and tools needed to move goods in dangerous regions. 

Companies, including global chemical manufacturer Kronos Worldwide, Inc., are already leveraging these tools to help minimize risk and improve shipment safety.

“We operate globally and the technology that supports us needs to as well. Our teams needed better ways of tracking shipments internally and across modes including ocean, rail, and truck,” said Memsud Musabasic, Kronos Director of Global Warehousing and Transportation. “We were among the first to sign up for Uber Freight’s ocean visibility pilot. Being able to see where ocean shipments are at any time will help us stay on-track and deliver better service to our customers.”

Be prepared with a tech-forward TMS

Global supply chains are inherently complex, and logistics teams need a comprehensive TMS that provides visibility into all aspects of the load lifecycle. At Uber Freight, our team has become more thoughtful in offering customers improved visibility into their shipments. This update strengthens our position as a trusted advisor, helping shippers around the globe make the most of the data at their fingertips.

Logistics teams also need a solution that turns data into actionable business insights, and unlocks functionality to allow teams to pivot to different modes and carriers in order to address disruption. Our new solutions join a range of features in Uber Freight’s TMS designed to equip shippers with a proactive toolkit to address any potential challenges. 

From real-time tracking to strategic routing insights, plus an end-to-end view of all shipments, the Uber Freight TMS couples a user-friendly interface with powerful, data-driven tools. To learn more about our TMS software, request a demo today. 

1) United Nations Conference on Trade and Development’s Review of Maritime Transport

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Navigating through this evolution, strategically managing fleet capacities, and understanding market dynamics indicate a strong future for sea freight shipping.

What is ocean freight?

Ocean freight transports goods and cargo over water, typically through large ships or vessels. This type of freight is often used for long distances and bulky or heavy items that are not time-sensitive. It is one of the most cost-effective and widely-used forms of transportation for international trade, allowing businesses to ship goods across oceans and continents at a reasonable price.

Types of ocean freight shipping services

Several types of ocean freight services are available, each with unique features and benefits. Some of the most common types include:

Full container load (FCL)

In this type of service, a single shipper’s goods occupy entire shipping containers. It is typically used for shipping large quantities of goods by one company or individual.

• FCL is ideal for shipping large quantities of goods, as it allows maximum container space utilization.
• It also benefits businesses that need to ship their goods with minimal handling and potential damage.
• This service provides more control over shipping, as the entire container is allocated to one shipper.

FCL would be useful for a furniture company shipping a large order of couches to a retailer in another country. The company can fill an entire container with the couches, ensuring they are safely and efficiently shipped without needing to share space with other goods. This also allows for easier tracking and handling of the shipment.

Less than container load (LCL)

This service is used when a shipper’s goods do not fill an entire container. The remaining space in the container may be filled with goods from other shippers, resulting in cost savings for each individual.

• LCL is a cost-effective option for businesses that do not have enough goods to fill an entire container.
• It also allows shippers to split shipping costs with other companies, resulting in savings for all parties involved.

LCL would be useful for a small business owner who wants to ship their handmade crafts to customers overseas. The business may not have enough goods to fill an entire container, but with LCL, they can share the space and costs with other shippers. This allows them to expand their business internationally without breaking the bank on shipping expenses.

Roll-On/Roll-Off (Ro-Ro)

In this type of service, vehicles and heavy equipment are loaded onto a specialized ship that allows them to be driven on and off the vessel. This is commonly used for transporting cars, trucks, tractors, and other large vehicles.

• Ro-Ro is a quick and efficient method for shipping vehicles and heavy equipment.
• It eliminates the need to dismantle and reassemble the items, saving time and potential damage.

Ro-Ro would be useful for a car manufacturer sending their cars to dealerships in other countries. They can simply drive the cars onto the vessel, eliminating the need for costly disassembly and reassembly. This also reduces the risk of damage during transit.

Break bulk

Break bulk shipping involves loading individual pieces of cargo onto a ship rather than using containers. It is typically used for oversized or irregularly shaped items that cannot fit into standard containers.

• Break bulk allows for transporting large or awkwardly shaped items that cannot fit into containers.
• It also provides flexibility in terms of loading and unloading, as each item can be handled individually.

Break bulk would be useful for a construction company sending heavy machinery and equipment overseas. These items are often too large to fit into containers, but with break bulk shipping,  they can still be transported safely and efficiently. This also allows the company to easily access its equipment upon arrival at the destination port.

How to ship using ocean freight

Ocean freight logistics depends heavily on the support of third-party entities known as freight forwarders. These intermediaries, or ocean freight forwarders, typically refer to external individuals or companies who handle the collection, organization for loading, and proper delivery of goods to their final destinations for shipping. This reliance is due to the essential need for trusted assistance in gathering goods from the seller, coordinating shipping processes, and ensuring successful loading onto ships.

Understanding the shipping contract is crucial in this process. International shipping terms, known as “Incoterms”, govern ocean freight contracts. These terms outline the responsibilities of the seller and the buyer regarding the goods at different stages of the shipping process, determining the transition of liability.

Among the most common incoterms are:

• FOB (Free on Board): This agreement shares delivery responsibilities between buyers and sellers. The seller ensures proper packaging, labeling, and loading of goods for shipping, with the buyer taking over obligations once the goods are onboard.
• EXW (Ex Works): In an EXW contract, the buyer holds most of the responsibilities by picking up goods at the manufacturer’s location and managing the transit to the final destination.
• CPT (Carriage Paid To): This agreement requires the seller to pay for the transportation of goods up to a designated location, after which the buyer takes over responsibility.

Navigating through these Incoterms and selecting the most suitable one is crucial for a successful shipping experience.

Once the shipping terms are determined, the process of finalizing ocean freight involves the following key stages:

1. Export haulage: This marks the beginning of the shipping process, where goods are moved from the seller’s warehouse to the freight forwarder’s warehouse. Uber Freight’s drayage services facilitate the initial transportation of goods from the seller’s premises to the forwarding agent’s warehouse, streamlining the movement through busy commercial ports.
2. Export customs clearance: Many countries require goods intended for export to undergo clearance procedures, including providing detailed cargo declarations and supporting documentation.
3. Origin handling: This stage involves all necessary activities to prepare goods for shipping, from inspection to confirmation. Once confirmed, the freight forwarder issues a cargo receipt, either stacking goods in a container for FCL shipments or awaiting consolidation for LCL shipments. Finally, the container is transported to the departure port for loading.
4. Transportation of goods: This phase entails the actual ocean transportation of goods. Preceding stages may take varying durations, while the ocean freight itself usually spans 20-60 days, depending on the destination. Ocean freight tracking systems provide real-time visibility into shipments’ status and location during the sea transit, offering transparency and reassurance to customers.
5. Import customs clearance: Upon arrival at the destination port, goods undergo import clearance, which includes completing necessary forms, cargo declarations, and fee payments.
6. Destination handling: This stage involves confirming goods, checking documents, and transporting the container to the freight forwarder’s warehouse for further processing, including inspection and sorting for import haulage.
7. Import haulage: The final stage involves transporting goods inland to the designated final destination.

Freight forwarders can handle all stages of the process, or specific arrangements can be made to optimize freight costs.

Ocean freight solutions with Uber Freight

Leverage Uber Freight’s tech-enabled Ocean and Air services for unparalleled transportation solutions. Our team of experts and data scientists ensures real-time visibility and reporting, empowering you with holistic insights. Drive logistics excellence with our innovative technology and trusted outcomes. 

Our international shipping services include:

• Global transportation management
• Freight forwarding (NVOCC, OTI, OFF)
• Customs brokerage and compliance
• Ocean and air freight 
• Customized port drayage
• Operations technology integration
• Ocean and air tracking and visibility
• Procurement and benchmarking

Choose Uber Freight for reliable and efficient international ocean freight solutions. Connect with an expert today!

FAQs

How are ocean freight rates calculated?

Ocean (FCL, LCL, and ro/ro) freight rates are typically calculated based on a combination of factors, including the volume of goods, distance traveled, type of cargo, and any additional services required. It is best to consult with a logistics provider for an accurate quote. 

Is ocean shipping cheaper than air freight?

Ocean freight tends to be more cost-effective for large and heavy shipments, while air freight is faster but more expensive. The best option will depend on the specific needs of your shipment and budget. It is recommended to compare rates from different shipping providers to determine the most cost-effective option for your business.

How long does ocean shipping take?

The time it takes for ocean freight shipments to arrive at their destination can vary depending on factors such as the distance traveled, route taken, and customs clearance procedures. On average, it can take anywhere from 2-6 weeks for a shipment to arrive.

What products are shipped by sea?

A wide variety of products are shipped by sea, including raw materials, finished goods, and bulk cargo.

Some common examples include:

• Consumer goods such as clothing, electronics, furniture, and household items.
• Automobiles and other vehicles.
• Raw materials like oil, coal, wood, and minerals.
• Agricultural products like grains, fruits, and vegetables.
• Construction materials such as steel, cement, and lumber.
• Chemicals and pharmaceuticals.
• Industrial equipment and machinery.

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By: Carlos Godinez, VP Business Development, Mexico

Amid international trade wars and global supply chain delays, businesses in the US are increasingly setting up shop in Mexico. This tidal wave of business expansion creates a plethora of new opportunities and with the height of produce season just around the corner, the cross-border supply chain will be impacted with an influx of activity.

It’s important now more than ever to create one united, optimized, and resilient North American trade corridor to support supply chains throughout the region. A seamless North American trade corridor features consistent freight distribution linked by major avenues, such as over-the-road gateways, container ports, rail and intermodal hubs as well as inland freight distribution clusters. These well-coordinated routes can help deliver goods in a timely manner, generate wider economic growth and resilience, and improve the overall quality of the supply chain. However, to achieve a fully optimized North American trade corridor, additional digital transformation is needed in cross-border logistics.

Current State of the Cross-Border Supply Chain

US-based businesses, primarily in the manufacturing sector, are expanding to Mexico for many reasons. Streamlined delivery times, easier shipping and lower labor and energy costs are just a few of the reasons. However, with more businesses now operating in Mexico, new challenges are arising, including complex customs delays and trade imbalance issues.

Increasingly high fuel prices have also created challenges for shippers. Mexico’s fuel prices increased from $22.16 per liter in January to $22.73 per liter in March, a 3 percent gain in just three months. And in April, the price of diesel averaged $22.98 per liter, which was a record high for the country. Shippers are struggling to keep up with the cost of rising fuel, which is an additional unplanned budget expense. In addition to the higher fuel prices, freight rate volatility and tight capacity remain present in the market. Import rates are also increasing as capacity remains tight for cross-border freight. Additionally, shippers are navigating high shipping volumes due to increasing demand and realignment of inventory levels that can create significant shortage or overage conditions.

As shippers navigate the mounting challenges, Free Trade Zones, an area where foreign and domestic merchandise is considered outside the US Customs territory, have risen in popularity. There’s increased interest from US-based businesses to bypass traditional West ports and take advantage of new rail bridges to connect Pacific ports, such as Manzanillo and Lazaro Cardenas. Shippers moving products from Asia to the South, Midwest and Eastern US are also taking advantage of the Free Trade Zone and Recinto Fiscalizado Estratégico (RFE) warehouses within Mexico customs territory.

The North American Corridor of the Future

To make this North American corridor a reality, shippers must embrace technology to optimize routes and navigate security challenges and regulatory developments. One way to achieve this is through Free Trade Zone activities. Shippers can introduce tools that support activity in the Free Trade Zones and RFE to defer taxes and duties. Partnering with a company that has expertise in managing activities, such as intermodal and rail solutions, warehousing and distribution, and customs compliance is key to cross-border shipping and keeping the supply chain moving.

Customs brokerage services also support an optimized North American trade corridor. Managing customs is a critical part of the cross-border supply chain and having a professional customs broker partner to navigate different regulations while providing shipment visibility and control is essential. These services can provide data insights on freight origin, customs clearance and final delivery, which can help to simplify the overall cross-border freight process.

It’s also imperative that shippers have real-time, highly accurate and transparent visibility of their freight at any given moment to ensure goods are delivered on-time and within budget. Having the latest managed transportation solutions will immediately give shippers the visibility they need to make sure their goods are safely and accurately moving across the border.

Within the cross-border supply chain, challenges with security, regulations and economic environment remain. It’s important for shippers to stay ahead of the curve by adapting to these challenges and utilizing the right technology platforms and solutions. By doing so, we can come together and create the logistics flow needed for a true North American trade corridor.

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What is International Roadcheck?

During this large-scale event, an average of 15 commercial motor vehicles and drivers will undergo North American Standard Inspections every minute at weigh and inspection stations, on roving patrols, and at temporary inspection sites. These inspections check critical vehicle components from brakes, tires and exhaust systems to van and open-trailer bodies, fuel systems and lighting devices. In addition, inspectors will review drivers’ operating credentials, hours-of-service documentation, seat belt usage, as well as check for alcohol and drug impairment.

CSVA Inspection Focus Area: Wheel Ends

This year’s inspection focus will be on wheel end components, which support the heavy loads carried by motor vehicles, maintain stability and control and are critical for breaking. According to the CVSA, “violations involving wheel end components historically account for about one quarter of the vehicle out-of-service violations discovered during International Roadcheck, and past International Roadcheck data routinely identified wheel end components as a top 10 vehicle violation.”

Plan Ahead to Avoid Delays

The goal of the annual roadcheck is to maintain safety for everyone on the road. However, these inspections can significantly impact capacity and service. Drivers may lose hours due to checkpoints, and may be placed out of service for noncompliance. In an already tight market, further delays can seem untenable. With the right preparation measures, shippers and carriers alike can minimize disruption:

1. Capture capacity by planning now
2. Expect higher spot volumes
3. Expedite rate approvals
4. Move sensitive freight before May 17
5. Adjust appointments and shipments ahead of the impact
6. Schedule non-critical shipments after May 19
7. Ensure vehicles and drivers are in compliance (find the CSVA’s full overview of wheel end inspections here)

Ensuring Preparedness on Roadcheck Day — and Every Day

Particularly when market conditions are volatile, a combination of planning, transparency and agility are critical for shippers to ensure minimal delays no matter what challenges arise. While the International Roadcheck might create disruptions, it’s an event shippers and carriers alike can anticipate and therefore minimize its impact. In many cases, shipping and logistics hurdles are unforeseen.

At Transplace, we work with our partners to drive logistics performance excellence through our technology, domain expertise and network scale whether the environment is predictable or unpredictable, favorable or unfavorable. We have connections with a diverse carrier base of air freighters, trucking companies, rail freighters and ocean liners. And with over $15 billion in freight under management, our network reach in North America is unmatched. Our carrier network and shipper insights enable flexibility and nimble decision-making to consistently improve supply chain performance.

To learn more about our capacity and network services and the ways we can support you in preparing for International Roadcheck, reach out to us today.

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By: Carlos Godinez, VP Business Development, Mexico

This year marks another difficult year across the global supply chain with tight capacity, increasing inflation and lack of reliability continuing to trouble the industry. Carriers are facing high volatility, uncertainty and demand, while shippers need increased confidence so they can find capacity efficiently and at a fair price. These issues are only expected to worsen in 2022, according to a recent S&P Global market insights report.

When it comes to cross-border collaborations, there is no shortage of challenges. The supply chain flow across the US and Mexico border operates as a black hole — low load visibility and shipment control on both sides of the border are frequent, making it even harder to ensure goods will clear quickly and seamlessly. Complexities in evolving international trade are rising, making it difficult to stay up to date on the legal, regulatory, and industry changes. Additionally, long customs clearing times, multiple customer processes for different ports and a lack of capacity hinders operations.

With inefficiencies and high costs impacting the US and Mexico cross-border supply chain, it’s important now more than ever to have visibility and control over freight operations. Digital transformation must be at the root of all business solutions to keep the cross-border supply chain moving.

Current State

As one of the top trading partners for the US, Mexico accounted for 14.4 percent of the total trade of goods for the US as of December 2021, totaling about $661 billion in trade, according to data from the US Census Bureau. This number will continue to grow in the future, as it has over the last 20 years since the NAFTA agreement was put in place, with companies in both the US and Mexico looking to expand cross-border operations. Just last year, companies such as Phillips Industries, Grupo Industrial Saltillo, Stanley Black & Decker Inc. and Whirlpool Corp. announced expansions into Mexico, which totals more than $200 million in investment and about 3,000 new jobs.

Despite the recent boom in economic activity, there’s a perfect storm of challenges brewing across the US and Mexico supply chain. Peak seasons are running longer and trucking companies in both countries are struggling to find drivers, with many drivers retiring or leaving Mexico to work for a US-based carrier by taking advantage of the B1 visa scheme. Because the volume and velocity of shipments has increased for companies in both countries, it’s also becoming more feasible to bring freight from Europe or Asia directly into Mexico through ocean ports, which decreases the amount of southbound flow from the US and capacity coming directly into the Mexican marketplace.

Digital Transformation’s Role

Uncertainties have become common in the cross-border supply chain. Being aware of security challenges, the current economic environment and regulatory issues are crucial to keep supply chains moving seamlessly across the border. To manage and address the complexities of the cross-border supply chain, digital transformation is essential to promote real-time end-to-end visibility from freight origin, to customs clearance and final delivery.

The first place to start is ensuring businesses have the proper technology systems to keep supply chains moving. Traditional transportation management systems have a long history of being out of date, often hindering a business’ ability to respond to delays or impacts to time-sensitive shipments. The next generation of transportation management systems allows shippers to control all aspects of their supply chains by harnessing data from multiple sources and applying them to deliver real, sustainable outcomes to logistics and supply chain operations. Active shipments, on-time arrivals and delays, and carrier performance are among the key performance indicators tracked with an up-to-date transportation management system.

Additionally, organizations must implement a “control tower” type of approach to transportation management. With a mix of shipment data, weather and traffic alerts, customs updates and compliance regulations, shippers can have a singular, all-encompassing, real-time view of their supply chain. Plus, being a cloud-based solution, the modern-day transportation management system can provide organizations with a data center application at a significantly lower cost of ownership.

Integrated solutions across ground, intermodal and ocean transportation, warehousing and distribution, US and Mexico customs compliance and transloading can make cross-border shipping easier than ever. Businesses can utilize customs brokerage and trade compliance expertise to create a single, controlled logistics solution with access to all US and Mexico points of entry to simplify global trade operations. In addition, remaining versatile in the ever-changing regulatory environment of cross-border transportation can allow for flexible, strategic processes to help mitigate risk, reduce supply-chain costs and gain visibility for logistics operations.

The cross-border supply chain never sleeps — at all hours of the day and night, shipments are moving, data is being generated for supply chain insights, security measures and regulatory requirements are being navigated and unexpected events that impact operations can arise. Digital transformation must be at the forefront of all logistics operations to guarantee visibility, flexibility and control of supply chains into the future

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