By Richie Lin.    Photo：Tudor Smith

Mexico has surpassed China to become the biggest trading partner of the United States. According to the statistics, every year, there are over USD 600 billion in automotive, machinery, electronics, consumer goods, medical equipment and other goods flow into USA across southern border with Mexico. And around 80% of the products manufactured in Mexico are transported to USA by the cross-border trucks coming back and forth between Mexico and USA. USA and Mexico share a nearly 3000 kilometers border. And there are six major urban agglomeration along the border to be the inland ports transferring the products from Mexico to USA and from USA to Mexico. These six urban agglomerations are San Diego–Tijuana, Mexicali–Calexico, Nogales–Nogales, El Paso–Juárez, Laredo–Nuevo Laredo, Reynosa–McAllen.

Right now, there are nearly 35,000 trucks cross the Mexico-USA border every day and there are two kinds of services such as Transloading and Through-trailer. Transloading means cargo is transferred from one trailer to another at a secured facility near the border. Through-trailer means cargo stays in the same trailer throughout the entire cross-border transportation process. If customers choose the Transloading, the basic procedures are the following: 1. Mexican truck pick up the cargo by Mexican trailer and shipper send the necessary documents to customs brokers in Mexico and USA. 2. Mexican trailer stops at the yard of Mexican trucking company. 3. Mexican customs broker issues the export customs clearance in Mexico and pay the related fees and USA customs broker issue the import customs clearance into USA at the same time. 4. Mexican customs broker inform the Mexican trucker to pick up the trailer at the yard of Mexican trucking company and send electronic Bill of Lading to Mexican and USA border. 5. Mexican trucker tows the Mexican trailer to cross the Mexican and USA border then stops the trailer at the transloading warehouse located in the USA border city. 6. Transloading the cargo from Mexican trailer to USA trailer and generate a new Bill of Lading. 7. USA trucker tows the trailer to the designated destination in USA. And ff customers choose the Through-trailer, the basic procedures are the following: 1. Mexican truck pick up the cargo by USA trailer and shipper send the necessary documents to customs brokers in Mexico and USA. 2. USA trailer stops at the yard of Mexican trucking company. 3. Mexican customs broker issues the export customs clearance in Mexico and pay the related fees and USA customs broker issue the import customs clearance into USA at the same time. 4. Mexican customs broker inform the trucker to pick up the USA trailer at the yard of Mexican trucking company and send electronic Bill of Lading to Mexican and USA border. 5. Mexican trucker tows the USA trailer to cross the Mexican and USA border then stops the trailer at the yard of USA trucking company located in the USA border city. 6. USA trucker tows the trailer from the yard to the designated destination in USA.

Whether customers use transloading or through-trailer service, their cargo and trailer will be passed through three different trucking companies. One is the Mexican trucking company which pick up the Mexican trailer or USA trailer to the Mexican Boeder city. Second is the Mexican trucking company which bring the trailers to cross border into USA border city. Law of United States requires that trucks from Mexican trucking companies cannot travel more than 26 kilometers within USA (distances vary slightly based on the point of entry). Third one is the USA tucking company which tows the trailers to the final destinations. And shippers in Mexico need to have designated customs broker to handle all their export shipments. So a reliable and experienced 3PL logistics company is very important to connect between different trucking companies and customs brokers in Mexico and USA to move shipments smoothly from Mexico to USA.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.