The North American market, which consists of Canada, Mexico and the United States, is one of the largest manufacturing and trading markets in the world. With a huge consumer base and one of the most modern infrastructures anywhere on the planet, this well-established trading block presents a range of unique opportunities for UK businesses looking to import to and export from the North American market.
Thanks to multiple government led initiatives and investments over the last decade or so, the construction industry in the US has been booming. The food industry in the region is also enormous and, importantly for UK businesses, there seems to be an increased interest and demand for quality British products in these sectors, amongst others.
The North American market has remained historically stable and high value, with strong legal protections in place for both domestic and international businesses. The strong economies of the US and Canada, and emerging Mexican market, make this a very attractive proposition for UK businesses. The higher profit margins and diverse nature of business in the US especially, also carries with it a significant appeal.
However, the main challenges to accessing the North American market for import and export lie in understanding the logistics and regulations of freight shipping. And although there is the added advantage of a shared language (with the US and Canada at least) it can be easy to forget that rules and shipping practices might seem very alien to inexperienced shippers in the UK.
All of which is why we have created this guide to shipping and freight for UK businesses looking to expand their operations into the North American market. We will take a closer look at the obstacles to smooth freight operations and then examine in more detail the freight solutions and reasons why working with experienced freight forwarding partners like our team here at Jordon Freight makes such good business sense.
The Common Challenges for Businesses Shipping to North America
The North American market plays an important role within UK business. In fact, the total trade in goods and services between the UK and USA was £294.1 billion in 2024, making the US the UK’s largest trading partner[1]. Some of the most important key areas of trade with the US include the aerospace industry, mechanical power generators, medicine and pharmaceuticals[2]. But all industries experience challenges when accessing this market. Key areas of difficulty can often include:
- Complex border regulations: There are different import laws across the countries of North America and these often depend on the specific goods you are importing/exporting.
- Tariff implications: The USMCA, formerly known as the NAFTA agreement, has developed new tariff structures that impact different industries at different rates.
- Delivery timelines: Tight delivery deadlines demanded by the US market can be crucial for maintaining good relationships and ensuring customer satisfaction.
Navigating this complex web of regulations and tariffs can be very difficult, especially for inexperienced shippers. Which is why working with an experienced and reliable logistics partner is always recommended.
The Key Considerations for Shipping
Before attempting to enter the US market, there are a number of key factors to consider that will affect the efficacy of your expansion into new territories, as you can see below.
Shipping Routes and Methods
Depending on what you are shipping and how quickly it needs to arrive, there is a choice of shipping methods for getting goods back and forth across the Atlantic Ocean.
Sea Freight
This is the most cost-effective option for shipping goods to and from the US, especially bulk materials which take up a lot of volume. Key shipping ports in the US include New York and Houston, with shipping times usually between 10 and 30 days depending on departure and arrival destinations.
Air Freight
Air freight is the fastest way to ship goods, making it ideal for perishable items or time-sensitive shipments. However, this speed comes at a higher cost. Key air freight hubs include JFK in New York, Toronto Pearson, LAX, and Chicago O’Hare.
At Jordon Freight, we offer flexible transit options, ranging from expedited 1-day delivery to more cost-effective 9-day services, depending on your business needs. Choosing slightly longer transit times can result in significant savings, as express services are typically more expensive. If your schedule allows for some flexibility, we can help you find the perfect balance between cost and timing to meet your requirements.
Road and Rail Freight
Due to the Atlantic Ocean separating the UK and North American market, road and rail freight are only really used for final mile deliveries. However, they are the most common freight option for any goods crossing internal borders within the North American market, between the US, Canada and Mexico.
The road and rail transportation options provide considerable cost advantages over airfreight, with tracking available from the point of loading to delivery. This service is dependable and eliminates delays associated with transshipments by sea. By capitalising on the extra transit time savings offered by sea transport and the lower costs compared to airfreight, this option serves as an excellent alternative.
Regulations and Tariffs
Having a good working knowledge of the regulatory landscape is essential for success in this market and smooth shipping. But it is not always straightforward. There are some key considerations which include:
- The United States-Mexico-Canada Agreement (USMCA): This agreement replaced the existing NAFTA legislation which determined most of the trade within the three major players of the North American market. The new system made changes to the duty-free thresholds and origin rules.
- FDA Regulations: The Food and Drug Administration rules must be followed for any shipments of foods or other consumables.
- CFIA Standards: These Canadian regulations apply to agricultural and processed food shipments.
It is essential to share and submit AMS and ISF information prior to departure from the origin ports. This manifest serves as a tool for US customs to monitor cargo intake and determine if the FDA or other relevant authorities wish to inspect or review the documentation for each shipment before it arrives.
Documentation for Customs Clearance
When importing or exporting to and from the North American market there is some documentation that is required. This includes the commercial invoice, which details the shipment value and description, a Certificate of Origin which proves where the goods were manufactured and the Export Declaration which is required for UK customs clearance. A Bill of Lading, or BOL, provides the shipment details for carriers and customs. Finally, a packing list will help customs officials to carry out any inspections as quickly as possible.
It is important to remember that there are differences between the US and Canada in terms of the documentation needed. While both processes are similar, US imports are generally much stricter and regulation changes occur more frequently. Canadian import tariffs are more stable and predictable.
AMS/ISF applies to the United States, while ACI is relevant for Canada. Both adhere to similar principles and regulations set forth by their respective governing bodies. Timely compliance with these requirements is crucial to prevent delays, customs penalties, and extra fees.
How to Overcome the Challenges
Overcoming the hurdles to trade is key to successfully establishing trading partners in this large and powerful marketplace. Here are some top tips on how to do it.
Customs Clearance
Delays at customs can be a major headache and can impact the profitability and reliability of any shipment. These issues can be smoothed over by using an experienced customs broker. They will ensure compliance and take care of any documentation and tariff codes. You can also utilise preclearance programs which can speed up the process, although these are only available for certain types of goods. It also helps to make sure that any documentation is 100% accurate, as most stoppages result from missing or incorrect information.
Damage and Delays
Freight can often be damaged in transit, which usually occurs due to a lack of proper packaging and labelling. This is especially necessary when shipping fragile or perishable goods. It is often a very good idea to take out freight insurance, which protects against losses due to damage. Damage can also be a key cause of delays, and resolving these issues from the UK can be very tricky. But working with reliable carriers can help to mitigate risks.
Dealing with Tariff Changes
The current political climate is resulting in tariff changes within the US but staying up to date with the evolving nature of these can be tricky. You ideally need to employ proactive monitoring strategies and adopt flexible pricing models to absorb any changes that may occur. Working with an established freight forwarding partner like Jordon Freight will help you to develop strategies to cope with fluctuating tariffs.
Best Practices
In order to make a real success of any North American expansion, you need to set in stone some best practice guidelines for any shipments you make. Essentially, this means ensuring timely deliveries by using more effective planning and the latest technological assistance such as real time tracking. If possible, try and diversify shipping methods to cope with any eventualities. But perhaps most importantly, you need to work with a reliable logistics partner.
Here at Jordon Freight, we offer all our shipping partners a range of key services. These include being transparent and visible in everything we do, including real time shipment tracking at all times. We are incredibly adaptable and can handle even sudden changes in shipment demands. And we can create tailored services for different industries and individual companies.
We remain constantly up to date on all regulatory changes and procedures, helping you to avoid delays, penalties and fines, and our compliance experts ensure that your shipments always fall within established guidelines. To find out more about how working with Jordon Freight can help you access the power of the North American market, get in touch with a member of our team.