Canada crossing the border with Mexico: 5 Differences shippers need to know

The U.S.-Canada and U.S.-Mexico borders are two of the busiest land crossings in the world, with more than 63,000 trucks crossing these borders every day.

Whether a truck is transporting goods across the northern or southern border of the United States, the process is very similar:

All goods are subject to the same Trade Agreement (USMCA).

Goods must pass through customs and border patrol.

Transportation requires careful coordination between shippers, freight providers and customs brokers.

But the two intersections are not exactly the same.

Every cross-border shipper should be aware that there are some key differences in how the Mexican and Canadian borders with the United States are handled.

1. The Mexican carrier market is twice as fragmented as Canada's.

Mexico is located at the intersection of two continents, which has contributed to the development of its robust transportation and logistics industry.

But similar to the U.S. truck-loading market, the Mexican market is highly fragmented - there are about 178,000 rental carriers in Mexico, and more than 80 percent of Mexican carriers operate fleets of one to five trucks.

By comparison, there are about 88,000 trucking companies in Canada.

2. Almost all goods crossing the Canada-U.S. border are transported by trailer.

Transshipment (i.e. the transfer of goods from one trailer to another at the border) is a common practice when importing and exporting from Mexico.

Conversely, transshipment is very rare for Canadian cross-border shipments; Most goods are transported by trailer, and the goods always stay on the same trailer.

Why is that?

To transport goods in the United States, Mexican drivers need a B-1 visa.

On the border between Canada and the United States.

Although it does require special permits, Canadian drivers do not need a B-1 visa to enter the United States, and they have an easier time transporting cross-border goods to the United States than Mexican drivers

3. Most carriers do not offer cargo insurance in Mexico, but your broker can.

Carriers have little incentive to buy insurance because they are only liable for a small amount if goods are stolen or damaged, regardless of the value of the goods.

However, some freight brokers (include Sublimate) have the ability to mitigate this risk by adding freight insurance in Mexico as part of a complete cross-border freight solution.

4. Canada's customs clearance process is smoother.

Customs clearance is an unavoidable part of international transport.

The process in Mexico is more complicated than in Canada for several reasons.

For all shipments between the United States and Mexico, drivers are required to show physical documentation at customs, and the goods they transport are often subject to physical inspection.

The language barrier is even worse when shipping in Mexico.

Separate customs brokers are required on both sides of the Mexican freight border (for Canada, only importers need customs brokers).

There are more drivers and often more freight companies involved.

5. It usually takes longer to cross the Mexico-US border.

The average time to cross the border between Mexico and the United States usually takes two to five hours, but it can take longer if there is a high volume of traffic or ongoing inspections cause disruption.

At the border between Canada and the United States, it's usually less than an hour. Why is that?

• There are fewer border crossings.

The Canadian border is much longer than the Mexican border and there are 76 border crossings along the way. There are only 22 ports on the southern border, many of which do not have the infrastructure for commercial cargo to cross.

• Cross-border traffic is more frequent.

Of the 63,000 trucks that enter and leave the U.S. each day, 55% pass through the Mexico-U.S. border (a percentage that is rising as nearshore outsourcing accelerates).

• The busiest crossings are even more congested.

The border crossing in Laredo, Texas, is the busiest in North America. In 2022, more than 5.5 million trucks passed through the entry point.

By comparison, the busiest port of entry between Canada and the United States is Detroit, Michigan, where about 2.7 million trucks crossed the border last year, accounting for 25 percent of total truck traffic.