Expanding your shipping operations to include cross-border less-than-truckload (LTL) freight can help your business reach new customers. As supply chains continue to globalize, many companies discover cross-border shipping offers a practical and scalable solution for serving customers in Canada, Mexico, and other North and South American markets without requiring full truckload commitments. However, successful cross-border LTL freight shipping requires careful planning and execution.
Understanding customs procedures, documentation requirements, cost structures, and international regulations ensures your shipments move efficiently while keeping you compliant with laws across borders. At the National Motor Freight Traffic Association, Inc. (NMFTA)™ we equip carriers, shippers, and logistics professionals with the tools and resources necessary to navigate these complexities confidently, empowering your business to expand responsibly into new markets.
What Is Cross-Border Shipping?
Cross-border shipping is the movement of goods between countries that adheres to the regulations of the exporting and importing nations. Compared to domestic shipments, cross-border freight requires additional documentation, inspections, and compliance steps to clear customs and meet local requirements.
Cross-border LTL freight shipping for smaller loads that don't fill whole trucks helps businesses better control shipping costs and experiment with new markets. Businesses that can benefit from cross-border LTL pallet shipping include those that:
- Regularly ship smaller quantities internationally;
- Want to test market viability in neighboring countries;
- Need efficient inventory transport across borders; and
- Have customer demand for flexible shipment size.
Things to Consider with Cross-Border LTL Freight
While cross-border LTL carriers can help you extend your reach, they also increase shipping complexity. Consider the following factors when planning shipments like these and deciding if they make sense for your business.
Added Costs and Expenses
Logistics planning that includes extra fees ensures accurate pricing and prevents disruptions due to unpaid customs balances. Cross-border shipping often incurs additional expenses compared to domestic shipments. For instance, customs brokerage fees for processing entries plus duties and taxes based on shipment values and classifications can drive up costs considerably. Transloading or cross-docking charges at border crossings also subtract from your bottom line.
Required Documentation
Incomplete or incorrect paperwork can delay shipments and incur fines. Understand the documentation you need for specific shipments by reviewing U.S. Customs and Border Protection guidelines before shipping your goods. Required documents often include:
- Commercial invoices listing the shipment contents, value, and transaction details;
- Bills of lading that serve as contracts between shippers and carriers;
- Packing lists that detail the shipments' contents and packaging;
- Certificates of Origin that verify countries of manufacture and may impact duties; and
- Any additional documents required for specific products, such as permits and licenses.
Regulations and Compliance
Each country enforces specific import regulations, including product restrictions, licensing requirements, and packaging standards. Specific products may have their own rules based on their type, such as fumigation or inspection requirements for agricultural goods. Noncompliance can lead to rejections, fines, or additional inspections, so ensure your team understands requirements before shipping to avoid unnecessary delays or penalties. Streamline operations by using Standard Carrier Alpha Code® (SCAC®) and resources to identify carriers and shipments accurately, assisting customs and transportation partners in tracking and clearing your cross-border LTL freight more efficiently.
Managing Risk in Cross-Border LTL Freight Shipping
Cross-border LTL freight shipping introduces additional risks due to multiple handoffs, customs holds, and differing regulations. Manage these risks by vetting carriers, insuring cargo, tracking shipments, and communicating clearly with carriers, customs brokers, and customers. Proactively managing risks for cross-border LTL freight ensures on-time arrival while maintaining customer trust and operational efficiency.
How to Determine if You're Ready
Evaluate whether your business can effectively manage the complexities of international logistics before considering cross-border LTL freight shipping. Your business should also effectively manage customs documentation and compliance, establish inventory systems to support cross-border fulfillment, and diversify its customer base and revenue streams with manageable investments. Smooth the process by preparing for cross-border freight shipping ahead of time.
NMFTA supports carriers, shippers, and logistics professionals with the tools and documentation they need to excel in cross-border LTL freight operations. We assign SCAC to identify carriers and streamline customs clearance, enabling goods to move quickly, and offer classification standards for accurate documentation and regulatory compliance.
Our educational resources let you know when evolving regulations may impact cross-border freight shipping, and we support networking opportunities to maintain peer-to-peer best practices. Most of all, we educate members concerning cybersecurity, technology, and operational standards relevant to cross-border LTL carriers so they can sell internationally with confidence.
Membership and participation help simplify cross-border LTL pallet shipping while maintaining compliance with industry and regulatory requirements. Grow your shipping operations by joining NMFTA to better manage cross-border freight shipping. For optimal visibility in supply chain and transit advancements, get the latest updates from the Digital Standards Development Council (DSDC).
