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Keep it moving (page 3)

-- Logistics Management, 6/1/2005

Page 3 of 3
Despite signs of progress, delays continue at a border that has long been known as a chokepoint for North-South trade. Cheesebrew of Mach 1 notes that although there are FAST lanes at a number of ports of entry, very few Mexican truckers are FAST certified. "Those that aren't may have to wait in line five to six hours to cross through Mexican and U.S. Customs," she says. "If they send trucks out of a plant early afternoon, we can't get them here until 7:00 or 8:00 o'clock at night, and we miss the airfreight or truck cut-offs to send them elsewhere."

Planned changes in the way advance shipment information is submitted to CBP could further delay imports from Mexico. Within the next few months, motor carriers that cross the border from Mexico into the United States (rather than the freight forwarder) will be required to electronically transmit detailed shipment information to CBP. That system already is in place along most of the northern border. But it might not work on the southern border, where some of the busiest crossings rely on local draymen to shuttle loads across the border, notes Beltran.

Most of the drayage companies are owner-operators with a few aging vehicles, and they typically don't have the technology or the financial resources to meet CBP's mandate, says Laredo-based customs broker Daniel Hastings, Jr. He's seen some draymen refuse to accept responsibility for transmitting that information—which will increase from fewer than a dozen elements to 126—on the grounds that it's required by U.S. authorities and therefore should be handled entirely on the U.S. side. "The issue will be whether the draymen will be able to, will want to, and will accept responsibility for providing electronic manifest information or hard copy [bar-coded documentation]," he says. Those that don't are likely to go out of business, he predicts.

For Better or For Worse

Cargo security is a moving target, and it's difficult for international traders to be sure they're in compliance with the requirements of all three NAFTA countries. Education, communication, cooperation, and careful selection of service providers are key to success, say those in the know. (See "Advice From the Frontlines" on Page 52 for their recommendations.)

Security-related logjams, moreover, could get worse before they get better. "I see more regulations coming up, not less, and that will cause more delays," predicts Averitt's Valdez. But shippers can take heart that technological innovations and infrastructure improvements now under development, along with increasing cooperation and harmonization of practices among U.S., Canadian, and Mexican customs authorities, should eventually bear fruit. That could be a long way off, though, so for now, strict compliance under current conditions while preparing for future changes is the smart route across both borders.



Advice From the Frontlines

With regulations affecting cross-border trade still in flux, how can shippers keep their goods moving quickly across the U.S. borders with Canada and Mexico? Here's advice from those who face that challenge every day:

Bernardo Rodarte, Carrier Mexico: Participate in programs like the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Business Anti-Smuggling Coalition (BASC) that prove to customs authorities that you are a low-risk shipper. Don't just fill out the paperwork; take those responsibilities seriously and live the programs' principles.

Bob Armstrong, PBB International: Don't wait until another attack occurs and governments clamp down even tighter. Take action now to ensure your suppliers and service providers can meet all security requirements, and that your internal processes facilitate getting information and shipments where they need to be, and on time.

Ernie Valdez and Beth Billingsley, Averitt Express: Work with service providers that are committed to full compliance with security programs and to educating their own personnel and their customers. Check for programs that are similar to those in place at Averitt, which has formal, mandatory training for drivers on border-crossing procedures, provides training seminars to customers, and has dedicated service and support teams to help shippers and drivers at both borders.

Daniel B. Hastings, Jr., Daniel B. Hastings Customs Brokers: Make sure your Mexican suppliers, transportation providers, and customs brokers understand U.S. and Canadian Customs' new information requirements, and that they will be able to comply with those rules. A trip to the border for face-to-face meetings could be very helpful.

Raul Campos, Trico Products: Have good internal information tools in place. Automating documentation helps eliminate errors and discrepancies, and integrating export/import systems with materials planning and other systems makes it easier to track changing orders and schedules.

Armando Beltran, Schneider National: Not knowing is not an option. Invest the time, energy, and resources needed to be aware of and comply with changing security requirements. Make certain that everyone in your North American supply chain is sharing accurate, up-to-date information.

Yvette Cheesebrew, Mach 1: Give preference to hiring a carrier that's approved for the FAST program, and encourage suppliers and customers to get FAST certified. It takes time and money, but for companies that qualify, it can substantially cut transit times at both borders.


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