Commtrex and Wellington Group of Companies have recently received an increase in shippers who want to use rail to transport their cross-border freight. One of our Class I rail partners is now managing about 800,000 containers per year over the border. Additionally, with near-shoring/on-shoring growing, understanding how to move shipments cross-border using rail will be essential.
First, is intermodal cross-border the right fit for my freight?
There are several factors when determining if intermodal is the right service. To name a few:
- Proximity to rail terminals – The cost to dray the freight to the terminal and switch modes may make sticking with trucking more economical for the entire move.
- Type of freight – Some shipment types, such as expedited, may not work on the rail.
- Total distance – Typically the longer the haul, the more competitive utilizing intermodal becomes from a price perspective.
- The customs needs & requirements for the shipment – A good customs broker will provide expert advice here.
What should a shipper look out for in partners that will support their intermodal cross-border needs?
Put simply, experience. It is strongly recommended to all shippers that they use a customs broker who has experience managing intermodal cross-border. They should be able to provide examples of freight they handle and references. Their 3PL or 4PL that has experience with intermodal may be able to help by referring a customs broker.
What is the difference between a customs broker and a logistics company (3PL/4PL)?
A logistics 3PL/4PL company handles the drayage and rail portions to get the freight from A to B. A customs broker handles the paperwork and legal complexities of the freight for it to cross a border. Customs brokers pay attention to embargos, legalities, tariffs, trade agreements, and more.
How are the customs procedure and required paperwork for rail different than over-the-road shipping?
- ACI notifications – Many shippers who use trucks to handle their cross-border freight are used to receiving Advance Commercial Information (ACI) as their shipment crosses the border. Over the rail, hundreds of shipments cross at the same time and therefore are not processed at the border, and no ACI notification is given.
- T&E bonds – these can be used on a truck or the rail, but all rail shipments must be bonded to cross the border.
- Country-specific EDI requirements for rail – Canada (ACROSS), Mexico (AMS), and the USA (AMS) all have different systems and requirements in North America.
- Cross-border regulations – Class I Railroads are CTPAT, PIP, and FAST regulated, and these regulations need to be followed. Customs brokers with intermodal experience will abide by these regulations.
If you are still feeling lost about the advantages of cross-border intermodal, reach out to the Commtrex team or Wellington Group of Companies and we would be happy to assist you. Our combined team of intermodal experts manages more than 6,000 cross-border rail shipments per year, and we can help determine if your products are suited for cross-border intermodal.
See you next week!
Bill Robinson
