So, you’ve nearshored your manufacturing to Mexico? Smart. More organizations, just like yours, are boosting their business resilience through faster, more predictable transit times and transportation cost savings.
But are you leaving money on the table? Are unreliable partners putting your freight—and your brand reputation—at risk? Cross-border shipping is inherently complex, and doing it well requires nuanced insight into local Mexican freight markets. The good news: I’ve got some advice that can support the conversations and, ultimately, partnerships that will have your cross-border transportation program humming.
But first…
A U.S. – Mexico cross-border shipping win
Sometimes, a quick 45-second case study is the best way to communicate the value of partnership. This is one of those times.
A new customer shipping out of California reached out to me, and they were struggling. The market was volatile; freight rates fluctuated daily—and wildly. It made forecasting costs and budgeting a real challenge.
When they called for help, they shared that their shipments weren’t time-sensitive and always went to the same destination. The unpredictability of their transportation costs, though? That was a problem that needed addressing asap.
I recommended that they switch their transportation mode from OTR to rail; an option they hadn’t considered before. Not only would it ensure consistent capacity, but it would also address their primary challenge head-on—delivering a lower, stable rate for every shipment year-round. Sure, it would mean longer transit times, but we could address that drawback by staggering the shipments to maintain a steady flow of product.
This simple change saved them over $1,000 per shipment and, at 10-20 loads per week, the yearly savings were undeniable.
Stories like this aren’t really that uncommon.
What some shippers come to learn through this process is the value of people who are committed to partnership over a quick transaction. Like so many other cases, this was a win-win. The customer realized the long-term fix they needed and, by focusing on a solution that took care of their needs over our short-term gains, I earned their trust—and future business.
How do you realize gains of your own?
Grow with sustainable business partners. Whether you’re shipping freight domestically, within Mexico, or across the U.S. – Mexico border, finding partners who prioritize the long-term business sustainability of everyone involved is essential.
On the logistics side, that means providing fair rates and great service. Of course, your logistics partner should negotiate with carriers on your behalf—but not to the point of demanding unsustainable rates. I’ve seen it before, and I’m sure I’ll see it again: When capacity tightens, carriers remember who took care of them—and they’ll put them at the front of the line and be more willing to be flexible with rates.
So, how can you determine if a prospective partner is truly watching out for you?
Freight brokers who want to solve problems and deliver value do a lot more listening than talking. It’s how they uncover opportunities to help you grow. So, you should be getting questions, like:
- What challenges are you struggling with right now?
- Is it typical for your crossing to get held up by paperwork?
- Are you running a regular analysis of your current partner’s accessorial fees, like TONUS, per diems, and detentions?
- Are you using a TMS that gives you a way to score card your providers and, if so, what factors influence that score the most?
- What makes your current cross-border transportation partners a good fit?
- What’s your process for bringing on cross-border transportation partners?
Be open to transparent conversations about freight rates
You spend about 10% of your revenue on transportation costs; that’s a hefty piece of your budget. So, finding fair rates is critical to your healthy bottom line.
Getting there begins with a review of historical rates in your chosen lanes. While this data isn’t as readily available as it is in the U.S. with platforms, like DAT, an experienced cross-border broker can get it for you. With that data in-hand, you’ll have a better sense of whether your carriers are treating you fairly.
Then, be open to a frank conversation.
A freight broker that has their eyes on your business sustainability will ask, “Where do you need to be for this to work for you?”
It’s not uncommon for companies to hold their cards close to the chest; I urge you to fan them out on the table. Understanding what’s important to you gives an experienced broker the insight they need to develop a solution with your long-term success in mind.
That’s what I did for a customer who was moving Mexican tequila to the U.S. market.
The partnership was successful because everyone was open to talking shop and finding a way to make the arrangement mutually beneficial. The customer needed reliability and transparency, and both the carrier and customer gave a little on rate. In just a few weeks, the carrier needed little in the way of support from me; they understood expectations and reliably delivered against them.
It was another win-win that arose from communicating in good faith, setting clear expectations, and committing to a beneficial situation for everyone involved.
Recognize that carrier relationships are even more important in Mexico
Mexico is the new frontier for many. And what some manufacturers are coming to understand is that relationship-building in Mexico is key to getting freight moved on time and budget; even more so than it is in the U.S.
An experienced broker will understand this, and they’ll ensure your loads are moved by the same vetted carriers throughout your entire existence in Mexico. That’s how you nurture trusted relationships, after all.
But finding those carriers you can count on? It’s easier said than done.
Until very recently, Mexico didn’t have loadboards like we have in the U.S.—and it’s still early days. That meant cross-border freight brokers, like me, had to Google carriers. As their marketing presence wasn’t nearly as sophisticated as it is in the U.S., it meant lots of legwork to sift the wheat from the chaff. (It was a bit of a nightmare, to be honest.)
The good news: A freight broker that has extensive experience in Mexico will have developed a large book of vetted, C-TPAT certified carriers to accelerate your success.
Build an adaptable team suited for the shifting political landscape
Political changes are underway. Mexico just went through a national election, and President Claudia Sheinbaum intends to implement massive judicial reform. Meanwhile, President-elect Trump has been quite vocal about implementing new tariffs.
These changes will usher in a whole other layer of challenges and opportunities for shippers, like you.
As Amanda Russo, founder and CEO at Cornerstone Paradigm Consulting tells Forbes, “These tariffs will inevitably increase costs which we already know, as they act as a tax on imported goods, and very likely will disrupt the flow of trade by adding complexity to customs processes and extending lead times that are already quite long.”
That means finding transportation and logistics partners who can be nimble is key—those who embrace a tech-forward, collaborative approach and see opportunity amidst the chaos.
Find a partner with the flexibility to adhere to your operational standards
Transparency and accountability; they’re crucial to keeping your products—and business—moving smoothly. That’s why many shippers leverage TMS systems to monitor their freight, centrally manage documents, streamline partner communication, and report on partner performance.
Are you one of them? Then you know easy access to timestamps, document uploads, and change and fee requests all in one central place makes your work life easier. What’s more, it helps keep important details from slipping through the cracks.
So, when you’re considering a new partner, finding those who offer a TMS integration and will establish an SOP with their carriers is paramount. It’s how you ensure tech compliance and hold partners accountable for delivering on expectations.
Even better, that TMS integration means you’ll have access to the historical data you need to generate provider scorecards; data like on-time deliveries, last minute changes, and tender acceptances. That’s the insight that enables you to give more of your loads to your highest-performing partners.
Boost the success of your cross-border shipping program
It takes an intelligent approach, on-the-ground insight, and sustainable partners to realize success in international shipping. With these elements at the ready, though, you’ll uncover opportunities to boost on-time delivery, realize transportation cost savings, and regain some much-needed sanity.
Want to know more about cross-border shipping or get deeper insight into our logistics strategies? Our team has deep experience in Mexico, and we’re always happy to help.
Discover how we approach cross-border freight or contact us with your questions at: sales@bws-logistics.com or +1 773-842-5275.
Ready to simplify your logistics?
Let’s deliver on your customer promises now, and as your business grows—together.