International trade forms the backbone of the global economy, facilitating the movement of goods across vast distances. However, this complex system often encounters significant challenges, especially regarding transportation logistics. Intermodal (rail) and over-the-road (OTR) transportation are critical components of this cross-border process, yet they come with unique risks that can disrupt the supply chain. Understanding these challenges and how to mitigate them is crucial for businesses seeking to thrive in a competitive marketplace. As companies navigate the intricacies of cross-border shipping, supply chain resilience becomes a vital focus. 

Common Risks in Cross-Border Freight 

Intermodal and OTR transportation are indispensable for global trade, but they are fraught with risks. Theft and damage are persistent threats, with cargo vulnerable at various points along its journey. Delays and capacity issues further complicate the picture, potentially leading to increased costs and customer dissatisfaction. Moreover, regulatory compliance challenges can create bottlenecks, as businesses must adhere to complex trade regulations and customs compliance to ensure seamless operations. According to Trade Finance Global, understanding and managing these risks is essential for maintaining smooth operations.

Key risks in cross-border freight include: 

  • Customs clearance delays – Incomplete or incorrect documentation can hold shipments at the border, causing costly delays. 
  • Regulatory compliance issues – Changing trade regulations across different countries require careful oversight to avoid penalties. 
  • Cargo theft and security concerns – High-value freight is vulnerable to theft, particularly in unsecured locations or during transit. 
  • Supply chain disruptions – Weather, labor strikes, and geopolitical events can impact freight movement. 
  • Fluctuating transportation costs – Fuel price changes, carrier capacity constraints, and border fees affect shipping expenses. 
  • Limited visibility and tracking – Without real-time tracking, it’s difficult to monitor freight status and anticipate issues. 
  • Inconsistent transportation modes – Coordinating transportation logistics across multiple carriers can lead to inefficiencies.

 

How a Cross-Border Freight Broker Reduces Risk 

Addressing these transportation challenges requires strategic measures. Implementing advanced tracking systems can significantly enhance visibility, providing real-time tracking of shipments. This technology allows companies to monitor their cargo’s location and condition, ensuring timely deliveries and reducing the likelihood of disruptions. In addition to tracking, comprehensive insurance coverage is essential to protect against unforeseen events. Businesses involved in LTL shipping often benefit from these protective measures. 

A cross-border freight broker plays a key role in mitigating these risks by offering structured solutions and proactive planning. PRIMO helps businesses navigate these challenges through: 

  • Customs brokerage expertise – Ensuring full customs compliance and handling customs clearance with efficiency. 
  • Freight insurance options – Protecting shipments from damage, theft, and unforeseen delays. 
  • Risk management strategies – Contingency plans to reroute freight during supply chain disruptions. 
  • Optimized logistics networks – Leveraging carrier relationships to find cost-effective, reliable solutions. 
  • Technology-driven tracking – Providing real-time tracking to improve visibility and reduce uncertainty.

 

Expanding logistics networks to include coverage in Mexico and Canada offers numerous advantages. Cross-border shipping capabilities facilitate seamless operations, enabling companies to tap into new markets and optimize their supply chains. Efficient cross-border logistics solutions streamline transportation modes and logistics networks, reducing potential bottlenecks and improving overall efficiency. This expansion also allows businesses to integrate nearshoring strategies, which can significantly enhance operational efficiency by reducing transportation costs and improving response times. Companies dealing with machinery logistics often find these strategies particularly beneficial. 

Building a resilient supply chain also helps shippers overcoming disruptions in international trade through: 

  • Contingency planning – Prepare for potential disruptions and develop alternative routes or solutions to maintain the flow of goods. 
  • Cross-docking – Minimize storage time by transferring goods directly from inbound to outbound transportation, reducing the risk of delays and damage. 
  • Invest in robust networks – Maintain agility and adaptability in the face of changing market conditions by investing in a strong logistics network.

 

Strengthening Your Cross-Border Freight Strategy with PRIMO 

Choosing managed transportation solutions is a strategic decision that can significantly enhance logistics operations. By leveraging expertise in trade regulations, customs clearance, and risk management strategies, businesses can achieve greater efficiency and resilience. With expanded cross-border shipping coverage between the US, Mexico, and Canada, companies can optimize their international trade operations. Connect with a PRIMO team member today to enhance your logistics strategies.