Decoding cross-border FTL shipping rates to Mexico
Oftentimes, customers from the US and Canada ask us: What are all costs involved in an international freight shipping service to Mexico? To answer that question, in this post we make a point-by-point analysis of all elements included in an International FTL shipping rate to Mexico. In addition, we mention other charges non-related to the transportation service, that our customers have to take into account when shipping freight to Mexico.
What is FTL?
FTL or Full Truckload is the ground transportation service in which a complete truck is dedicated to a single load or to a single customer. The FTL transport service is suitable for large loads, that are capable of occupying a complete truck. It is also the preferred option for delicate loads or for loads that require regulated temperature.
What is included in a FTL shipping rate to Mexico?
Generally, after requesting a quote for a Full Truckload freight shipping service from Canada or from the USA to Mexico, your freight forwarder will send you a quote that includes all costs related to the transportation of the goods. These include:
1- Transportation from point A to point B
The transportation of the load from the pick-up address to the final destination. For commercial freight transportation, both pick-up and delivery addresses must have a loading dock, which is an area of a commercial building or warehouse where trucks are loaded and unloaded.
2- US-Mexico Border-crossing fee
After freight is transported from the pick-up point to the US side of the border, freight has to be transported from the US side of the border to the Mexican side of the border, this movement is called border crossing and is made by a “transfer”. Often times, the border-crossing service is not included in the transportation fee but transportation companies can provide it for an extra fee.
Two important things to know:
- For shipments coming from Mexico to the US or Canada, most reputable transportation companies will offer the border crossing service only if they are in charge of the whole shipment door to door; this means, from the point of origin in Mexico until the final destination in the US and Canada. This is for safety reasons, given that companies can not take the risk of crossing goods that were not under their control and supervision from the beginning of the transportation process.
- The US-Mexico Border crossing fee includes only transportation services, and it does not include customs paperwork. Services offered by a customs broker are different than services offered by a transportation company. The transportation company is in charge of the transportation of the goods only whereas the customs broker is in charge of preparing and submitting documentation (eg. “Manifiesto”, “Pedimentos”, etc) to notify or obtain clearance from the government.
3- T&E Bond. (Only applicable when shipping from Canada to Mexico).
Shipments being transported through the United States, that are are not intended to be commercialized in that country, do not clear customs in the US border but need to be “bonded”. The customs T&E Bond is a form of insurance to protect the United States in the event that an importer or exporter does not pay the duties, taxes or fines incurred in their imports.
Companies specialized in the transportation of goods from Canada to Mexico, such as Mexicom Logistics, take care of the T&E Bond, for a fee (75 USD).
For further information about the T&E Bond, you may want to read our post: Here is what you need to know about in-bonded shipments being transported from Canada to Mexico
Some freight forwarders, such as Mexicom Logistics, include the border crossing and T&E Bond fees when sending a quote for an FTL shipment from Canada to Mexico to their customers because they know that those accessorial services are always applicable to southbound freight shipments in this shipping lane. However, these services are optional, which means that the customer can choose if they want the freight forwarder to provide those services or if they want another party to take care of them.
What is NOT included in a FTL shipping rate to Mexico?
The responsibility of transportation companies is limited to the transportation of goods from point A to point B, that is why the following services are not included in a FTL freight shipping rate:
- Packaging and labeling. Packing is the shipper’s responsibility.
- Loading and Uploading. Loading the truck is the shipper’s responsibility. Likewise, unloading the truck is the consignee’s responsibility.
- Customs brokerage services. Preparing and submitting documentation to customs.
- Customs Duties. The tax due when importing items.
If you wish to obtain additional services to the freight transport service, just ask to your freight forwarder if they offer such services. Mexicom Logistics offers most of the services mentioned above for regular shipments going from Canada or the USA to Mexico.
LOOKING FOR AN ALL-INCLUSIVE FULL TRUCKLOAD FREIGHT RATE TO SHIP GOODS FROM CANADA OR THE US TO MEXICO?
Contact Mexicom Logistics