Why Having Cargo Insurance Matters for Cross-Border Freight
When shipping freight across the U.S.-Mexico border, one of the most important things you need is cargo insurance. Shipping to Mexico has unique challenges, and making sure your goods are protected is key to avoiding big financial losses. Without the right coverage, damaged or lost cargo can leave you without a solution.
For any company that moves high-value shipments, understanding the difference between U.S. and Mexico cargo coverage is critical to protecting your bottom line. You don’t want to find out too late that your shipment wasn’t fully covered.
The Difference Between U.S. and Mexico Cargo Liability
How Cargo Insurance Works in the U.S.
In the U.S., motor carriers are usually covered by something called the Carmack Amendment. This law makes trucking companies responsible for any cargo they lose or damage while shipping. Most carriers carry cargo insurance for up to $100,000 per trailer, but they can increase the coverage to $500,000 or even $1 million if needed.
For shippers in the U.S., this means that your goods are usually covered for damage or loss unless they are worth more than the carrier’s insurance limits.
How Cargo Liability Differs in Mexico
Mexico handles cargo insurance differently. The country follows rules set by the Secretaría de Comunicaciones y Transportes (SCT). If the value of your goods isn’t declared before shipping, the carrier’s responsibility is very low. They’ll only pay based on 15 days of the local minimum wage per ton of freight. In U.S. dollars, this comes out to just over $2,500 for a 20-ton shipment.
That amount of coverage isn’t even close to what most shippers need for high-value freight. If you don’t declare the value of your goods and pay extra for coverage, your cargo could be massively underinsured when crossing into Mexico. This is why understanding Mexico’s rules is so important.
Protecting Your Freight: Abound Transport’s Enhanced Coverage
Shipping to Mexico without proper insurance is risky. Abound Transport, powered by Armstrong Transport – ATG Network, provides a solution. With our $500,000 insurance coverage for international shipments and $1 million coverage for U.S. and Canada, you can rest easy knowing your cargo is protected. Our network of top carriers has deep experience running U.S.-Mexico lanes, making us one of the best in the business.
What Happens If Your Freight Isn’t Fully Covered?
Shipping without enough insurance can lead to huge problems. If your goods are damaged or stolen, you could face massive financial losses. Plus, dealing with Mexican insurance regulations can be complicated, especially if your shipment doesn’t meet the declared value requirements. This can cause delays, and recovering your money is often harder than in the U.S.
The last thing you want is to lose a shipment without any way to recover the costs. That’s why making sure you have the right cargo insurance is so important.
How to Make Sure Your Cargo is Fully Insured
Partnering with a Reliable Logistics Provider
The best way to avoid costly mistakes is by working with a trusted logistics provider. Abound Transport, powered by Armstrong Transport – ATG Network, offers extended insurance that covers freight all the way to its destination. Whether your shipment stays in the U.S. or crosses the border into Mexico, our team will ensure you have the right coverage in place.
Self-Insuring with Cross-Border Coverage
Another option is to self-insure by buying cross-border insurance. Some companies specialize in providing insurance for shipments moving from the U.S. to Mexico. These policies protect your freight even if it’s moving through different countries. Be sure to ask your logistics provider for recommendations on the best insurance options. They often work with the top third-party insurance companies.
Common Mistakes to Avoid When Shipping to Mexico
Assuming U.S. Insurance Extends into Mexico
One of the biggest mistakes shippers make is assuming that their U.S. insurance will protect them in Mexico. Unfortunately, this isn’t true. U.S. carriers’ liability stops at the border, and your shipment needs to be covered by Mexican insurance once it crosses.
Failing to Declare the Value of Your Cargo
If you don’t declare the value of your cargo when shipping to Mexico, you’ll only receive minimal compensation if something goes wrong. Always be sure to declare the value of your goods to make sure they’re fully covered.
Choosing the Wrong Logistics Provider
Not all logistics providers have experience with cross-border shipments. You need a provider who understands the specific rules of Mexico shipping and can help you navigate insurance requirements. Abound Transport, powered by Armstrong Transport – ATG Network, has a specialized team that handles Mexico shipments and insurance, making them an ideal partner for cross-border freight.
Tips for Successful Cross-Border Freight Shipping
Know the Rules
Make sure you’re aware of the different transportation laws in Mexico. What works in the U.S. doesn’t always apply in Mexico, and you’ll need to take extra precautions to ensure your shipment is protected.
Always Declare Your Cargo’s Value
Don’t forget to declare the value of your cargo before shipping into Mexico. This simple step can make a huge difference in the amount of insurance coverage you receive.
Work with Experienced Providers
Always work with a logistics provider who has experience with cross-border shipping. Providers like Abound Transport, powered by Armstrong Transport – ATG Network, have a deep understanding of how to move freight safely between the U.S. and Mexico.
Conclusion: Protect Your Freight the Right Way
Shipping freight to Mexico comes with unique challenges, but with the right cargo insurance, you can avoid big financial risks. Always make sure your freight is fully covered, especially when crossing the U.S.-Mexico border. By partnering with a trusted provider like Abound Transport, powered by Armstrong Transport – ATG Network, and declaring the value of your cargo, you’ll have peace of mind knowing that your shipment is protected from start to finish.
