Inbound Logistics | July 2023

Mapping Out Cross-Border Connections

“To me, as an entrepreneur and a business owner, these are exciting times,” he says. “These past three years have reinforced our ability to manage in a way that drives the Polaris culture of close connections with our teams. The pandemic caused us to strengthen our relationships through deeper conversations with our customers and partners.” Pandemic-induced supply chain disruptions prompted collaborative efforts—always a hallmark of North American cross-border trade relationships—to increase, Cox notes. “Carriers need strong relations with manufacturers and distributors,” he says. “These conversations are important. If I were a shipper, I would want to know I have a friend out there. We want shippers and distributors to think of us as good friends.” Communication takes place at all levels, from sales to the C-suite, because Canada is mindful that as much as the United States depends on Canada, the reverse is likewise true. “We’re a trading nation,” he says of Canada. “Our standard of living depends on close ties to the United States.” A DIGITAL PASSPORT FOR FREIGHT The heightened interdependence of the border-sharing neighbors presents an opportunity to build on their physical connections, Cox notes. “I would like to see stronger efforts to streamline trade between Canada, the United States, and Mexico,” he says, adding he envisions a “trade union” where goods ow freely among the North American nations, as they do in the European Union. “We have a fantastic opportunity,” he says. “Why not a digital passport for freight?” As he sees it, a “digital passport” would function as something of a freight counterpart to the TSA PreCheck for airline passengers. Prior clearance through government oversight departments on both sides of the border—such as the Canada Border Services Agency in Canada and

Polaris Transportation Group has been known for its scheduled LTL service between Canada and the United States since 1994. The company now o¤ers complete supply chain management for shippers, from transportation services to warehousing to digital solutions.

the Food and Drug Administration and Department of Agriculture in the United States—would serve to make the process of border crossings for freight more efcient and stress-free. “At Polaris, we make it a point to know those agencies,” he says. “Wouldn’t it be wonderful if we had complete compliance already established? We know what we have to do on a daily basis and we’re very good at it.” While recognizing and appreciating the relative speed and prociency of border crossings handled by experienced logistics providers like Polaris, Cox says he believes there is always room for improvement. “Business is coming back to North America,” he says. “So let’s make trade easy.” KNOWLEDGE IS POWER Giles Moore, the director of strategic accounts for FLS Transportation, also shares insights on the state of post- pandemic cross-border shipping. While shipping volumes have remained strong, they have also stayed stagnant, he notes. Moore attributes this to the expected geographic differences between the two countries, leading to an imbalance between north and southbound volumes.

FLS Transportation, based in Atlanta, Georgia, with 17 ofces throughout North America, specializes in cross- border third-party logistics (3PL) services. In addition to its expertise in over-the-road transport, the company offers customizable contract logistics functions such as warehousing, cross-docking, project logistics, and freight management. Moore highlights the demand for Canada-specic providers due to the unique challenges of the Canadian market. Cross-border prices are more volatile compared to the domestic market, he notes. Despite the challenges, the post- pandemic market has experienced double-digit growth, he states. The recent scene of container ships waiting at major ports has emphasized North America’s reliance on Asian imports. As a result, many top companies have brought their operations and supply chain volumes back onshore, leading to an increased role for Mexico in the USMCA relationship. Processes have returned to normal, but the availability of capacity has not increased signicantly in the past decade, Moore acknowledges when asked about the return of pre-pandemic processes and supply chain disruptions.

168 Inbound Logistics • July 2023

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