In an insightful FreightWaves article, “Borderlands: Cargo insurance can boost cross-border operators’ business,” Mark Vickers, executive vice president and head of international logistics at Reliance Partners, sheds light on the complexities and benefits of cargo insurance in the Mexico-U.S. trade corridor. The article emphasizes the crucial role of cargo insurance in safeguarding cross-border operations, especially given the high incidence of cargo theft and trucking accidents in Mexico.
Vickers, also the founder of Borderless Coverage, highlights how large carriers manage to secure lucrative cross-border contracts due to their comprehensive risk management strategies and efficient insurance coverage. He points out the challenges faced by smaller carriers and brokers in competing with these ‘big dogs’ but also notes a positive trend: more brokerages and smaller carriers are now successfully entering the market by proactively offering Mexican cargo insurance and highlighting their risk management protocols.
The article also touches upon the broader landscape of North American trade, noting Mexico’s emergence as the U.S.’s top trading partner in 2023, with a staggering $656 billion in two-way trade. This surge in trade has made the Mexican market more lucrative than ever for brokers, carriers, and shippers, making the understanding of insurance options essential.
For a more detailed exploration of how cargo insurance can enhance your cross-border operations and to read Mark Vickers’ insights, visit the full article on FreightWaves here.