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Optimizing Cross-Border Logistics for Efficiency and Cost Savings

Published on
January 2, 2025
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By
VCPB

Cross-border logistics could get a whole lot more complicated in 2025. Shippers should partner with transportation and logistics providers that already have the expertise required to deal with regulatory changes and supply chain roadblocks. Those skilled cross-border logistics providers can not only help shippers navigate complicated North American freight moves but enable them to increase efficiency and decrease costs as well.

3 Challenges Ahead

When it comes to North American cross-border trade, tariffs, the status of the United States-Mexico-Canada Agreement (USMCA), and border crackdowns all will be major concerns for shippers in 2025.

Mexico is the United States’ top trading partner, with imports valued at $480 billion, and about 75% of Canada’s exports go to the United States, with those imports valued at $430 billion.

Tariffs

The new administration could levy a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on goods from China. There also could be 100% tariffs on the BRIC alliance – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates – if those countries attempt to shift away from the U.S. dollar for trade.

Canadian officials reportedly are considering retaliatory tariffs on U.S. goods. “Our government will always defend the national interest, and we’re going to do it by playing as Team Canada,” Deputy Prime Minister and Finance Minister Freeland was quoted as saying.

Mexico also could levy retaliatory tariffs. President Claudia Sheinbaum called the threatened U.S. tariffs “unacceptable” and said that “one tariff would be followed by another in response,”  according to Forbes.

USMCA

The USMCA was signed in 2020 to replace the North American Free Trade Agreement (NAFTA) that had governed trade among the U.S., Canada, and Mexico since 1994.

The USMCA is up for renegotiation in 2026, but the incoming administration has indicated there may be push for changes to the trade agreement, particularly to the provisions about duty-free trade, in 2025.

“I want to make it a much better deal. I want to take advantage, now, of the car industry,” President-elect Donald Trump said on Fox News.

Border Crackdowns

The incoming administration has said the tariffs on goods from Canada and Mexico will be implemented unless the two countries stop illegal immigrants and drugs from crossing the borders. Between October 2023 and September 2024, U.S. border agents seized 43 pounds of fentanyl at the U.S.-Canada border and 21,000 pounds at the U.S.-Mexico border, according to the BBC, which said over the same time period, there were about 200,000 “migrant encounters” at the northern border and more than 2 million at the southern border.

U.S. Customs and Border Protection agents could be redeployed from border checkpoints to assist with threatened deportations and patrol borders to prevent illegal immigration. That could result in longer wait times for trucks at the borders.

Challenging Times Require Expert Cross-Border Services Providers

In challenging – and changing – times, it’s imperative to work with expert cross-border service providers.  

Cross-border transportation and logistics providers must have:

  • Comprehensive regulatory knowledge. Cross-border trade execution requires a thorough understanding of customs regulations, including tariff classification and valuation and the determination of duty rates.  
  • Superior security measures. Strict cargo-handling procedures and safety processes must be in place for cross-border moves. In the first half of 2024, there were about 57 cargo thefts taking place each day at the U.S.-Mexico border.
  • Advanced technology. Real-time tracking systems and automated customs platforms increase visibility and help streamline cross-border shipping.
  • Flexible solutions. Effective cross-border shipping providers must be able to adapt to changing business needs – and government trade policies – and scale operations accordingly.

VCPB Provides Expert Cross-Border Services

At VCPB Transportation, we are experts in all aspects of complicated cross-border shipping. We provide our customers with efficient solutions that help them save money wherever possible.

We have an extensive network of fully vetted and insured carriers and the right equipment to handle cross-border shipments. We use real-time tracking and 24-hour dispatch to keep all parties informed throughout the entire cross-border shipping process. And we make sure to provide cost-effective solutions tailored to shippers’ specific needs.

We offer specialized services for the most difficult shipments, including wine and alcohol, which require expert care and attention. We also are an industry leader in moving produce, and we make sure imported fruits and vegetables are delivered in prime condition every time. Whether it’s cross-border freight or expedited, over-the-road, intermodal, or drayage management, VCPB Transportation has you covered.  

Start shipping with VCPB.

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