Is Your Cross-Border Insurance Covering Your Shipping Needs?
Is Your Cross-Border Insurance Covering Your Shipping Needs | Red Arrow Logistics

Today’s global trade market requires companies to be able to deal with complex supply chains and international shipping in order to optimize their bottom line. Shippers are challenged when they must ship freight to other countries, especially when the cargo is worth a lot of money. It is important that shipments move across borders efficiently and cost-effectively without damage, loss, or theft of the goods. Cross-border insurance can provide door-to-door coverage to protect every international shipment. 

Cross-Border Shipping Challenges

No matter where and what you are shipping, there is risk involved. When shipping from one country to another, that risk increases with a longer distance to travel, different regulations, and more handling of the shipment. 

Some of the most common shipping challenges across country lines include:

  • – Border Delays (due to tariffs, customs compliance, regulatory issues, or incomplete paperwork)
  • – Longer Transit Times
  • – Lack of Shipment Visibility
  • – Higher or Unplanned Costs
  • – Damage, Loss, or Theft
  • – Operational Restrictions

The shipper does not have to be entirely responsible for all of these challenges, however.  Cross-border coverage provides all-risk cargo insurance for shipments that cross country lines.  As compared to self-insurance or global cargo insurance policies, cross-border coverage is a cost-effective way to ship internationally, and it provides peace of mind for the shipper that they will be protected financially should something go wrong.

Increased Trade with Mexico

Last year, Mexico became the largest trading partner with the United States, at almost $615 billion in trade between the countries in 2019. Many exporters are either interested in expanding their current reach in this country or entering this market for the first time. Trade between the two countries is only expected to grow, with the ratification of the United States-Mexico-Canada Agreement (USMCA), making it a good time for brokers and carriers to enter this market if they have not done so already. The elimination of certain tariffs under this agreement has made trade with Mexico more attractive to exporters. 

Cross-Border Insurance Coverage in Mexico

Cargo insurance for shipping to Mexico is a topic that is often talked about by shippers, especially now more than ever an increasing number of goods are being exchanged between the U.S. and Mexico. This type of insurance is especially important when shipping to Mexico as the majority of shipments are transloaded at the border so having an insurance policy that is valid in both the United States and Mexico provides the most protection for the shipment.

As with any international trade, there are several concerns when shipping freight to Mexico.  One of the most pressing concerns for shippers when sending freight to Mexico is the potential for damage and theft. Once goods cross the border, the chance for theft increases dramatically.  Because the road conditions are poor, there is also a greater chance that the shipment will be damaged in some way. Shippers in the United States might believe that a standard insurance policy will cover the risk to shipping to Mexico, but that is not always the case.

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Coverage Discrepancies

Insurance coverage discrepancies can cause more issues for U.S. shippers. U.S. carriers are required to carry cargo insurance, but carriers that operate in Mexico do not have the same standard. And if carriers in Mexico do carry insurance, the coverage is not nearly at a commiserate level. American carriers are liable for up to $1,000,000 in cargo loss protection, however, for Mexican carriers, it is less than 2 cents per pound.  For this reason, cross-border insurance is necessary to make sure that the freight shipment is protected for the entire duration of its journey.     

Using a Logistics Provider When Shipping Cross Border

International shipping comes always comes with risks, but they can be minimized.  Whether shipping to Mexico or another country, a logistics provider can help with the shipping requirements and insurance. Cross-border insurance solutions can help ensure that the shipment is protected.  Contact us today to find out how we can help you best protect your freight shipments to Mexico.

Your Trusted Partner

At Red Arrow Logistics, we provide expertise and white glove customer service with fast-growing, complex, and high-value supply chains. As the next-generation model of logistics companies, we offer tailored transportation and logistics solutions to meet your international shipping needs. We are an NVOCC, OTI license holder, and an IATA freight forwarder. We have partnerships in over 185+ countries to handle all of your required needs.

Red Arrow Logistics offers the scale and scope to handle your air, ocean, imports, and exports. No shipment is too large or too small. If we can be of assistance, please email us at or give us a call at 425-747-7914.