USMCA – What is It & How Does It Impact Shipping & Logistics?

Many things can have an impact on the shipping and logistics industry all at one time. Sometimes it’s weather, other times a shipping and logistics operator might be dealing with politics, news or new policies like USMCA. USMCA is the current shipping and logistics buzzword. You’ll see it discussed in forums. Similarly, you might hear it said somewhere in a meeting. But what is it? Also,  what does it have to do with shipping and logistics? Finally, is it going to make things any easier or harder instead?

USMCA – What is It & How Does It Impact Shipping & Logistics?

Here’s a quick summary of USMCA and what it means if you’re in this industry.

What is USMCA?

First, let’s break down the acronym. It’s short for US-Mexico and Canada. USMCA. That’s easy enough to get around. What it applies to is a drafted trade agreement that’s soon to be implemented into official use. In short, it looks to make trade between the listed countries easier and cheaper. This means that there are benefits to the official inauguration of the new USMCA bill for both consumers and shipping/logistics companies, especially ones who import and export across these borders. The current trade agreement in place is increasingly seen as old-fashioned and halting the shipping industry as a whole. As a result of what we have now, trade is slower, more expensive and more difficult to pull off (especially for smaller companies) across borders. Furthermore, this is limiting if you want to grow your company. USMCA looks to make it easier, cheaper and – as a result – faster and much more accessible.

What’s Changing?

As a whole, not all that much. That is to say, the most basic rules and regulations that go together with the current shipping regulations are almost identical in the new bill. The only major difference being that trade is going to be cheaper and easier. What this can change is big. However, it can mean that smaller shipping companies have a bigger chance to compete.  In addition, that can mean products are easier to access. It also means that entrepreneurs from all of these areas can now get their products to markets they weren’t able to before. Trade is going to be faster, cheaper and more accessible overall for both companies and their customers. It also means that the biggest shipping and logistics companies might not stay as dominant as they have been over the past ten years: Companies smaller than they are (including you) can take advantage of the change-over to USMCA.

As a leader in the transportation industry, we demand excellence from our entire team. Our team at The Junction LLC strives to deliver the best possible customer service and by a desire to solve our customer’s toughest transportation and supply chain needs.

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