Fleets Made Simple: How Cross-Border Operations Work

Ports across the southern United States handle thousands of truckload crossings every day, with cross-border freight activity reaching new highs in recent months. This surge is largely driven by the growing trend of nearshoring. The increase in northbound freight volumes is creating significant opportunities for fleet operations, with promising growth ahead.

According to Jerry Maldonado, director of Laredo and Mexico operations at Warren Transport, “The average daily northbound full truckload (crossing) in Laredo is 8,640,” and this number is expected to grow by 5 to 7% annually over the next five years, as he shared during a recent industry event.

To support this rising demand, the government is taking steps to improve infrastructure at border crossings. In Texas, the Laredo World Trade Bridge is set to expand from eight lanes to 18, aiming to cut down on wait times for northbound traffic. Additionally, efforts are underway to secure funding for the expansion of another key bridge in the area, Maldonado noted. Other ports are also undergoing development or expansion to accommodate the increasing traffic.

Moving Freight Between the U.S. and Mexico

At a recent industry event, Jerry Maldonado joined other industry experts to discuss how trucking companies can tap into the growing cross-border freight market. They talked about the logistics of moving freight across the U.S.-Mexico border, the certifications and requirements needed, and how to partner with Mexican carriers.

Mark Vickers, Reliance Partners’ EVP and head of international, explained three main ways to move freight across the border: through shipments and two types of transloading.

The most straightforward method is through shipment. Vickers described it as cargo being loaded, for example, in Chicago, staying in the same trailer, and being transported all the way to Monterrey without being moved. This method is simple but also the most expensive, so Vickers and his team often recommend customers get familiar with transloading instead.

In one transloading method, a U.S. carrier uses a U.S. truck and trailer to transport the load from Chicago to the border. At the border, the trailer is moved to a U.S. warehouse for inspection. After that, it’s transferred across the border to a warehouse in Mexico using a drayage partner. Finally, a Mexican carrier uses a Mexican truck to pull the trailer to its destination.

The other transloading method, called “true transloading,” involves more steps. The cargo is unloaded from the U.S. trailer at the border, stored in a warehouse, and then reloaded onto a different trailer. It is transported across the border to a warehouse in Mexico via drayage, inspected again, and then moved to a Mexican truck and trailer for final delivery.

Understanding these processes helps trucking companies take advantage of the growing opportunities in cross-border freight while managing costs and meeting operational requirements effectively.

Documentation and Certification for Cross-Border Shipments

Cross-border documentation and certifications play a vital role in facilitating the smooth movement of freight across the U.S.-Mexico border, whether through shipment or transloading. Among the essential documents is the carte porte, which serves as a bill of lading.

According to Jason Merck, a current TMS manager for Syfan Logistics with extensive experience in cross-border operations between Mexico and Canada, a carte porte “includes some detailed information about that shipment: what type of product it is, what route it might take, the vehicle that’s used, and serves as an invoice for transportation.” Beyond its logistical function, the carte porte also assists with Mexican tax collection and fraud mitigation and is a mandatory requirement for customs clearance.

Another critical element is certification under the Customs-Trade Partnership Against Terrorism (CTPAT). Matt Silver, founder and CEO of cross-border load board Cargado, described it as “the main security protocol” most trucking companies and shippers rely on to move freight from Mexico to the United States.

CTPAT-certified companies enhance their security measures with features like barbed wire fences, security guards, and surveillance cameras. Silver added that individuals entering these facilities are subject to strict protocols, including identification checks and fingerprint scans.

“Most cross-border trucking companies are either CTPAT certified or their partner carriers in Mexico are CTPAT certified,” Silver explained. He emphasized that shippers moving freight out of Mexico generally expect carriers to hold this certification, making it a standard in the industry.

Additionally, freight handled by companies without CTPAT certification is often harder to insure. Silver noted that lax security measures could increase risks, potentially affecting U.S. national security and making non-certified carriers less favorable.

Cross-Border Interchange Agreements

Warren Transport, a CTPAT-certified carrier, utilizes interchange agreements with CTPAT-certified Mexican carriers to transport freight across the border. Under these agreements, Warren Transport delivers a trailer to the border, where a Mexican carrier takes it to its destination in Mexico and then returns it.

The agreements assign full responsibility for the trailer to the Mexican carrier, including its condition, tires, and overall integrity. If damage occurs or parts are replaced, Warren Transport bills the carrier, encouraging better driver training to maintain equipment quality.

U.S. carriers can also insure trailers sent into Mexico, a practice popular among Reliance Partners’ large carrier clients. With certifications, agreements, and insurance in place, motor carriers can confidently operate across the border.