Real-time visibility helps halt cross-border fraud

Source: FreightWave 
Date: 27th June 2023

Trade amping up between US and Mexico.

Trade between Mexico and the United States is on the rise. This growing partnership between neighboring countries offers the cost savings U.S. companies need, as well as faster delivery times for consumers and economic growth opportunities for Mexico.

Earlier this year, Mexico surpassed Canada as the United States’ top trading partner. In that same time period, Laredo, Texas, became the country’s No. 1 gateway for international trade, pointing to a growing reliance on Mexico as companies continue to divest from China.

“Mexico is one of the U.S.’ major trading partners, and I expect this business to grow as some companies are trying to reduce their reliance on Chinese manufacturing,” said the managing partner of sales and operations at GB & Associates.

Recent import and export data supports the hypothesis.

“Exports from Laredo to the world increased 9% y/y [year over year] to $10.9 billion and imports increased 14% y/y to $17.7 billion,” according to a recent article by FreightWaves reporter. “Auto parts ($2.3 billion), passenger vehicles ($1.1 billion) and heavy-duty trucks ($1.1 billion) were the top three imports from Mexico to the U.S. through Laredo.”

Not only trades between Mexico and the United States on the upswing but there is a significant amount of high-value freight — like vehicles — crossing the border. Criminals looking to steal high-value cargo are attracted to the vulnerabilities associated with international border crossings, putting these shipments in harm’s way.

“Two types of fraud are prevalent in cross-border shipping: cargo theft while in transit and theft on the Mexican side of the border,” GB & Associates said. “We have even had drivers and equipment kidnapped in the past.”

Combatting cargo theft is an important issue, but it becomes even more crucial when company equipment — and even human lives — are on the line. When the stakes are this high, having visibility into a shipment’s movements is critical.

“Tracking has helped us recover equipment in the past by geofencing,” GB & Associates noted.

Accurate, real-time tracking is a game changer when it comes to both recovering assets and preventing theft in the first place. The risky nature of cross-border shipping — combined with the proven benefits of tracking — has motivated many shippers to mandate visibility from start to finish.

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