There are many factors that have driven and continue to drive companies to source operations to Mexico. This increase in trading operations involves an increase in shipping from Canada to Mexico. While the process itself is not as challenging as you may think, there are several key factors to be considered for successful cross-border shipping to Mexico:
Contingency Plans – It is important to understand that trading in Mexico might be influenced by social, economic, as well as environmental issues, including natural disasters. As a result, it is important that you work with a shipping company that has the ability to create multiple emergency plans so that you can conquer all unfortunate events that may interfere with your shipping from Canada to Mexico.
Visibility Tools – It is also vital that you seek a provider that features a transparent transportation service so you don’t lose track of your shipment. Losing track of freight at the border is a common risk that results from too many hand-offs and parties involved in the shipping process. You can integrate where possible so that you limit the number of hand-offs and streamline freight location and accountability issues.
Customs Broker – The customs broker plays an essential role when shipping from Canada to Mexico. It is crucial that you understand the implications of any mistakes that can occur in importing merchandise, as well as other shipping and import-related issues. A long-term, stable, and strong relationship with your customs broker can spare you a lot of time and money.
Diversified Carrier Base – It may not be wise to rely solely on a single carrier asset to satisfy your shipping needs to Mexico. Equipment availability throughout the year is essential if you want your business to grow. The solution is a diversified carrier base, which allows you to take the edge off this issue and benefit from additional equipment.
Avoid LTL – LTL shipments have a different regimen in Mexico. Not only are they more expensive because they are regionalized in Mexico, but shipping from Canada to Mexico may involve longer transits. That happens because LTL shipments cross the border separately. So it is advisable that you avoid longer transit times and expensive shipments by avoiding LTL altogether.
Insurance – One other thing that is different is carrier insurance. Unlike other countries, carrier insurance is not automatically incorporated in transportation rates. The carrier liability would basically mean nothing and collecting on the liability is not a common occurrence. The cheapest way is to buy insurance though your global policy and therefore have the coverage you need in Mexico.