The Future of Cross-Border Logistics
Cross-border logistics plays a pivotal role in today’s global economy, which is more interconnected than ever thanks to globalisation.
It enables the seamless movement of goods, services and data across borders– especially in times of crisis. For example, in 2020 alone there were 9.3 billion cross-border orders fulfilled globally, 60% of which were intercontinental.
Since then, international deliveries have been growing twice as fast as domestic ones, a surge driven by lower prices on foreign products and a lack of availability locally of high-demand items.
The sector is crucial to global supply chains, juggling transportation, customs compliance and warehousing to ensure timely, legal and cost-effective deliveries.
It is especially critical considering the rise of e-commerce, with big players like AliExpress and Temu coming out of Asia and China accounting for 40% of global cross-border parcel volumes. In this complex environment, mastering cross-border logistics is essential for businesses aiming to thrive in an increasingly global marketplace.
Cross-border complexities
This complexity brings about many challenges leaders have to overcome. One of those logistics leaders is Scott Shannon, Vice President of North American Cross Border at C.H. Robinson.
He oversees more than two million cross-border shipments annually and understands its pressure points more than most– particularly across Mexico and the US.
“Unlike freight between Canada and the United States, it typically takes three trucks to bring a shipment from Mexico to the United States,” Shannon explains. “A Mexico carrier brings the trailer to the border, a Mexico transfer carrier takes it across, then the freight is reloaded onto a US carrier’s trailer at a cross-dock.”
The limited truck lanes in this region can be easily closed by protests, slowed by weather events or held up by customs delays. Carriers have little control over this, so finding efficiencies elsewhere is key.
“It’s at the cross-dock where a shipper can get greater throughput,” says Shannon.
To address this, C.H. Robinson built one of the largest cross-docks of its kind in Texas, standing at 400,000 sq.ft. It dwarfs the region’s typical 100,000 to 250,000 sq.ft. facilities and has 154 doors on both sides.
“With this design,” Shannon adds, “including dedicated floor space in the centre, we can unload our customers’ freight with no waiting when it arrives and also reduce the reloading time.”
Another emerging challenge is the renewed enforcement of English language requirements for truck drivers entering the US.
“Direct loads to the United States have been desirable in the past because they generally pay more. Now there’s a shortage of drivers willing to take those loads,” he explains.
Carriers are testing drivers to assess fluency, but some prefer to wait until enforcement becomes clearer. Within border zones, drivers may be cited for failing a roadside English test. Outside those zones, including when delivering to Chicago, they can be immediately taken out of service.
Despite the disruption, Shannon adds: “the good news for C.H. Robinson customers is that we have the largest network of carriers in Mexico and are still able to serve direct shipping needs.”
Tariffs throw another spanner in the works: “We’ve seen higher tariffs announced, then paused, and now a warning of even higher tariffs for goods made in Mexico starting 1 August.”
US tariffs of 50% on steel, aluminium and products using those materials have hit manufacturers in Mexico. Sectors such as automotive parts, appliances and beverage packaging are particularly exposed. Shippers with lower wait times and more attractive freight have the upper hand in negotiating with carriers eager to keep their trucks moving.
Meanwhile, at Descartes, Scott Sangster helps freight forwarders and 3PLs navigate cross-border hurdles with better technology.
“Logistics service providers managing cross-border logistics face several significant challenges, including navigating complex and constantly changing customs regulations, visibility to shipments in-transit, rate management, integrating information of back-office systems as well as connecting with a broad range of parties, including carriers, government agencies and intermediaries,” Sangster says.
Chetan Sampat, Associate Partner at McKinsey & Company, sees many of the same issues with his clients across the automotive and industrial sectors.
“Disruptions including geopolitical turmoil and natural disasters are causing frequent delays, increasing costs and disrupting the flow of goods,” he explains. With variable tariffs, complex regulation and multiple handovers, visibility is poor and efficiency suffers.
“Companies need to focus on strategic planning, which involves identifying and mitigating risks, optimising routes and developing contingency plans,” Sampat adds.
Pairing this with investment in real-time tracking and advanced analytics helps companies adapt faster and keep goods moving.
Adaptive logistics technology
Cross-border logistics is evolving quickly as companies adopt smarter tools to tackle disruption.
Shannon says real-time visibility is no longer enough on its own. “Visibility to your freight while it’s moving is always important,” he notes, “but the uncertain environment companies are operating in today calls for visibility while your freight is at rest, too.”
If a new tariff emerges businesses need to instantly understand where their goods are, what’s affected and what alternative sourcing options are viable.
“If you’re using multiple logistics providers and your supply chain data lives in multiple transport management systems with varying degrees of sophistication, it’s hard to assess your exposure,” he explains.
With combined 4PL and 3PL services under one roof, Shannon’s team can help businesses quickly identify impacted orders, evaluate sourcing from other regions such as Puerto Rico or Europe and weigh the financial implications across duties, warehousing and transport. “A data-driven decision is almost always a better business decision,” he adds.
Sangster emphasises that integrated systems reduce risk: “Visibility and data integration play a key role in reducing disruptions to international shipments by enabling logistics providers to proactively manage risks and respond to issues in real-time,” he says.
When data from carriers, ports and customs is pooled into one view, companies can identify delays early, reroute goods if needed and maintain reliable delivery promises.
“Solutions that offer end-to-end shipment visibility allow companies to monitor container statuses, transit times and alert of potential delays across global routes,” Sangster adds.
Meanwhile, Sampat highlights how these technologies are shaping modern supply chains: “Technology has brought about significant improvements in efficiency, visibility and coordination for supply chains.”
However, he points out that “disconnects still exist, particularly between logistics systems and customs systems.
“Customs processes often lag behind the rapid adoption of modern logistics technologies, which can impact data integrity, information flows and overall efficiency.” These gaps can lead to penalties, longer clearance times and inaccurate shipment records.
To counter this, companies are increasingly investing in shared platforms that allow customs brokers, shippers and transport providers to work off the same data. “These platforms ensure that everyone has access to the same up-to-date information, enhancing coordination and reducing delays,” Sampat explains.
The goal is to create logistics systems that are not only faster but also more resilient.
Shipping costs for logistics and retail firms in 2025 remain high—and inconsistent. According to Freightos, rates vary by region, mode and shipment size, but a few benchmarks offer a snapshot.
Ocean freight from Asia to North America hovers between US$2,300 and US$3,500 per 40-foot container. The West Coast of the US sees prices near US$2,340, while the East Coast approaches US$3,400.
Rising fuel prices, new tariffs and regulatory fees have raised the landed cost of goods across industries. These shipping expenses directly shape final retail prices, while variables like customs rules, carrier surcharges and SKU (stock keeping unit) complexity make budgeting even tougher.
Sangster says: “Balancing cost-efficiency with speed and reliability in cross-border shipping requires companies to carefully assess trade-offs and tailor strategies to different products, markets, and customer expectations.” He explains that businesses often mix air, ocean and rail, depending on urgency and value, and rely on analytics and logistics tech to predict disruptions and adjust accordingly.
Sampat agrees: “To achieve this, they must proactively manage their supply chain, enhance supplier and carrier relationships, and leverage technology.” For him, tools that improve visibility, automate paperwork and streamline customs are essential to keeping shipments moving efficiently.
Still, even the best plans must be flexible, says Shannon. “The smart play for any North American cross-border shipper is to put yourself in the position to flex to a different crossing or a different mode of crossing—whether for cost, speed or disruption.”
He points to Canadian ports as examples: "The Port of Vancouver on the Canadian west coast can be faster for ocean service to and from Asia."
But when Canadian rail workers threatened to strike, the company turned to trucks. “A typical freight train carries about 300 truckloads,” Shannon says. “So when all the trains serving the entire country were going to literally be stopped on their tracks, our customers needed another way to keep their freight flowing.”
At the Mexico border, strategy depends on origin, destination and available infrastructure. “It might be the most cost efficient and fastest for us to cross part of your freight into California and part of your freight into Texas,” Shannon explains, adding that not every crossing has the same facilities, so transport plans must be agile. “Last year, two hurricanes were on a path to the Mexico border... our customers were ready to pivot to another crossing if necessary.”
As global freight costs shift and route disruptions become more common, companies keep balancing cost with service level. They know they can’t control weather or strikes—but they can prepare.
The future of borders
The future of cross-border logistics is leaning hard into smarter technology, evolving trade policy and rising delivery demands. From digital twins to drone deliveries, the logistics world is shifting from reactive to predictive.
Sangster sees data taking the lead: “Emerging trends are rapidly transforming the landscape of cross-border logistics.”
“Data consolidation” is key, he explains, linking systems from suppliers, carriers and customs into one real-time platform. He highlights the rise of automated transportation management systems (TMS), which help firms stay ahead of shifting trade rules while offering live tracking, automated documentation and better decision-making tools.
Meanwhile, Sampat points to simulation and sensor-based technologies.
“Emerging trends are significantly shaping the future of cross-border logistics,” he says. Digital twins, powered by AI, are already letting companies model disruptions before they happen. Add in IoT sensors and shippers now get real-time updates on freight condition and location.
“These technologies promise to reduce costs and improve delivery times,” especially as autonomous and drone deliveries begin to play a larger role.
Yet, technology can’t predict politics. Shannon warns that North American trade remains uncertain: “The past few months have been more of a trade policy rollercoaster. Wherever trade flows go next, we’ll be there to move the freight.”
