9 Emerging Technologies Reshaping Supply Chain Sustainability
6 October 2025
5 Smart Packaging Innovations Changing the Logistics Game
7 October 2025
FLEX. Logistics
We provide logistics services to online retailers in Europe: Amazon FBA prep, processing FBA removal orders, forwarding to Fulfillment Centers - both FBA and Vendor shipments.
Introduction
Cross‑border shipping has become a linchpin of global commerce. With the rapid growth in e‑commerce, consumers now expect products sourced from halfway around the world to arrive quickly, affordably, safely—and with full transparency. But shipping goods across borders is far from simple. Customs, tariffs, documentation, regulatory differences, delays, infrastructure constraints, geopolitical instability, and many more factors can derail profit margins, damage customer experience, or even prevent a shipment from reaching its destination.
For businesses involved in cross‑border logistics—manufacturers, retailers, 3PLs, and e‑commerce sellers—being aware of the main hurdles is not enough. You also need strategies to overcome them. Below are ten of the most pressing challenges in cross‑border shipping today, along with practical ways companies are dealing with them (or can), supported by data and real‑world examples.
1. Customs Delays & Complex Regulatory Compliance
The Hurdle
A major challenge for cross‑border shipping is getting goods through customs quickly and without errors. Delays often arise from missing paperwork, misclassified goods, complex tariffs, or unfamiliarity with regulations. According to a 2023‑24 report by Avalara, 43% of eCommerce companies said “shipments delayed in customs” was a primary issue. Similarly, 41% pointed to difficulties with customs regulatory compliance and Harmonized System (HS) codes.
Tariffs themselves have become a growing complexity: ePost’s2025 Shipping Optimization Analysis found that approximately 73% of product categories are now tariff‑sensitive, meaning that regulatory and documentation requirements have ramped up significantly.
How to Overcome It
- Automate documentation: Use software or platforms that help fill out customs declarations, apply correct HS codes, and calculate duties and taxes in advance. Automation reduces human error and speeds up clearance. FirstMile, for example, emphasizes automating compliance and documentation to reduce errors.
- Pre‑clearance / digital submission: Many customs authorities allow electronic submission of documents before shipments reach the border. This can shorten inspection times and reduce dwell time at customs.
- Enroll in “trusted trader” or authorized operator programs: Programs such as AEO (Authorized Economic Operator), CTPAT (Customs‑Trade Partnership Against Terrorism) etc., often allow preferential treatment, fewer inspections, or faster clearance.
- Use tariff‑sensitive planning: Be aware of product categories that are under strict scrutiny and avoid surprise classification changes. Keep up with policy changes. For example, understanding FTAs and origin verification, especially with categories like electronics, luxury goods, and apparel.
2. Hidden & Rising Costs: Tariffs, Duties, and Landed Costs
The Hurdle
The listed price of import/export is often just the beginning: duties, tariffs, customs fees, compliance costs, brokerage, delays and demurrage all add up. Many companies underestimate landed costs (the total cost to get a product from origin to destination, all in). Tariff sensitivity is growing: ePost reported that now 42% of shipment value tends to fall under “high‑complexity customs categories” which bring extra cost and scrutiny.
Additionally, a large percentage of organizations cite “added supply chain costs” as among top challenges. From the Avalara data, ~41% of respondents flagged supply chain cost increases as problematic.
How to Overcome It
- Landed cost calculators: Use tools that estimate all associated costs ahead of order (transport, duties, taxes, fees, cross‑border handling) so pricing and margins account for them.
- Use Delivery Duty Paid (DDP) or Delivered at Place Incoterms: Clearly defining who pays what (seller vs buyer) helps avoid surprises. Companies using DDP allow customers to see all charges during checkout, reducing disputes/delays.
- Optimize product classification & sourcing: Sometimes sourcing from regions with favorable FTAs or origin rules can reduce tariffs. Also, grouping SKUs or splitting orders to avoid high duty categories where feasible.
Negotiate with logistics/third‑party providers: Use carriers or brokers that offer better duty pre‑assessment or brokerage services; sometimes you pay more for peace of mind but save on unexpected fines or fees.
3. Documentation Errors
The Hurdle
Incorrect or incomplete documents are one of the most common causes of delays or rejections at customs. These include mis‑filled customs declarations, wrong HS codes, missing certificates (origin, safety, health), incorrect commercial invoices, missing permits. Reports show 94% of surveyed manufacturers/retailers encountered paperwork issues in cross‑border eCommerce.
Even for smaller shipments, errors in documents can lead to shipments being held, inspected, or returned. Some perishable goods may spoil during unexpected delays.
How to Overcome It
- Checklists and standard templates: Maintain up‑to‑date checklists for all necessary documents per destination, and use standardized forms/templates.
- Training and expertise: Ensure staff responsible for shipping understand customs rules, HS codes, value declarations. Keep them updated on changes.
- Pre‑shipment review / audit: Audit documents before sending out goods; some providers offer audit tools or inspection services.
- Digital document management systems: Use systems that save prior declarations, reuse templates, and flag potential missing fields or mismatches.
4. Transportation & Infrastructure Bottlenecks
The Hurdle
Even if paperwork is perfect, physical and logistical constraints pose huge delays and costs. Poor infrastructure—roads, port capacity, customs facilities, warehousing—especially in developing countries, delays at major choke points, port congestion, and limited transport modal options all hinder timely cross‑border shipping.
Global shipping routes are also vulnerable to events—canals drying up, route disruptions, port strikes, or facility capacity issues. These events ripple across supply chains. While specific contemporary data for all regions is mixed, logistics commentary points to increased congestion at ports, labor shortages, and delays in handling cross‑border flows.
How to Overcome It
- Use multi‑modal and flexible routing: If one port is congested, consider alternative ports, alternate transport modes (sea + road, rail + truck), or reverse logistics flows.
- Partner with local 3PLs / regional hubs: Local providers often know best which facilities perform well (or are less congested), and can sometimes bypass bottlenecks.
- Near‑sourcing or regional fulfillment: Producing or stocking inventory closer to end markets to reduce dependence on long cross‑border transit. DHL suggests near‑sourcing as a strategy.
- Investment in logistics visibility & real‑time tracking: Better visibility of where delays are occurring helps reroute or take corrective action early.
5. Security, Risk & Compliance with Safety Standards
The Hurdle
Cross‑border shipping often involves high‑value or sensitive goods (electronics, pharmaceuticals, luxury items) that attract risks like theft, damage, fraudulent documentation, counterfeiting. Also, safety standards differ: things like batteries, hazardous materials, or food safety have strict laws which can differ greatly per country.
Moreover, regulation around environmental compliance, safety labeling, packaging standards, and security protocols are increasingly strict. Failing to meet them not only causes delays but possible penalties or rejected shipments.
How to Overcome It
- Use trusted carriers and certified handlers: Ensure partners are compliant with security standards, packaging regulations, safety certifications.
- Secure packaging and tracking: Use tamper‑evident packaging, sealable containers, real‑time tracking, and insurance.
- Regulatory research & updating policy compliance: Always verify destination country requirements for safety, batteries, perishable goods etc. Use trade advisory tools.
- Participate in industry / government programs: E.g. Government trade security programs or customs security initiatives like CTPAT, or equivalents in other jurisdictions. These can reduce inspections or delays.
6. Tariff Fluctuations, Trade Policy Instability & Protectionism
The Hurdle
Trade policy isn’t static. Tariff rates, trade agreements, de minimis thresholds, trade bans or embargoes, import quotas—these all can shift with political change. Recent eCommerce shipping analyses show that many categories now face increased tariff sensitivity.
For example, changes in de minimis thresholds in certain markets or changes in rules of origin under FTAs can suddenly expose businesses to unexpected duty costs. The unpredictability is bad for pricing, margins, and cost forecasting.
How to Overcome It
- Monitor trade policy and tariff news: Stay informed about FTAs, rule changes, trade agreements, tariff adjustments. Possibly use services or consultants focused on trade policy risk.
- Diversify sourcing and shipping origination points: If you can source from multiple regions, you may shift sourcing if tariffs rise.
- Build flexibility into pricing and contracts: Include clauses or models that allow cost adjustments when tariffs or policies change.
- Use trade‑compliant supply chain design: Design products, components, or assembly operations in ways that maximize the benefits under trade agreements (origin rules etc.)
7. Currency and Payment Risk
The Hurdle
Cross‑border transactions often expose companies to currency fluctuations, payment delays, foreign exchange fees, local banking or regulatory constraints, or even risk of non‑payment. Variations in exchange rates can drastically erode profit margins when shipments take a long time or when costs are tied to one currency while revenue is received in another.
Also, unclear payment terms, delayed payments from foreign buyers, or unfamiliar banking / financial systems increase risk, especially for small or mid‑sized exporters.
How to Overcome It
- Use forward contracts or hedging: Financial instruments to lock in exchange rates to reduce exposure.
- Invoicing in stable currencies or matching costs and revenues: Where possible, match your costs (warehousing, transportation, packaging) in the same currency or region as your revenue.
- Require deposits or partial payments: To manage cash flows and reduce risk before full shipment.
- Partner with financial service providers experienced in cross‑border trade: Services like Escrow, trade finance, or international banking solutions.
8. Logistics & Carrier Fragmentation
The Hurdle
Often, cross‑border shipments pass through several carriers, multiple interfaces (first‑mile, cross‑border leg, last‑mile), customs brokers, local delivery services. Each handover or interface introduces risk of miscommunication, delays, tracking gaps, or damage. Companies may not have end‑to‑end visibility or leverage over all parts of the chain.
Ecommerce sellers often face unreliable delivery times when using a mix of local and international carriers without strong coordination.
How to Overcome It
- Partner with integrated or full‑service carriers: Providers who manage or coordinate multiple legs or who have strong partner networks.
- Use technology for visibility: Tracking platforms that consolidate data across carriers, customs brokers, and last‑mile partners. Real‑time alerts on delays or exceptions.
- Standardize packaging and handling: Use packaging that can withstand multiple handling, and ensure partners follow consistent handling standards.
- Establish SLAs (Service Level Agreements) with carriers/partners, with penalties or incentives for performance.
9. Returns & Reverse Logistics
The Hurdle
Returns are tougher when cross‑border: higher shipping costs, import/export of returned goods, customs, possibly paying duties twice, dealing with different tax regimes, waste or disposal of goods that cannot be resold or reimported, and customer dissatisfaction.
High return rates (common in fashion, electronics) exacerbate costs and complexity.
How to Overcome It
- Use localized return hubs: Situate return merchandise authorization (RMA) centers or processing in destination regions to reduce cross‑border movement.
- Clear return policies and customs documentation: Make sure customers and logistics partners understand who pays what, the required paperwork for returns, and potential fees.
- Use prepaid and simplified return labels: That include correct customs info to expedite processing.
- Inspect and refurbish where possible: Reduce waste and salvage value by refurbishing or reselling returned goods locally.
10. Delays due to Geopolitical & External Disruptions
The Hurdle
Geopolitical events—trade wars, sanctions, border closures, riots, war, drought (impacting canals or waterways), pandemics, or climate‑induced disasters—can unexpectedly affect shipping routes, transit times, available transport modes, and cost.
For example, droughts or environmental changes affect key sea routes, while shifting global trade alliances or sanction regimes can suddenly render some trade lanes untenable. These affect predictability.
How to Overcome It
- Scenario planning and risk assessment: Identify vital routes, alternative ports, backup carriers. Regularly run scenario analyses.
- Flexible supply chain design: Maintain option to shift shipping modes/routes, buffer inventories, use alternate ports or lanes.
- Strong communication and partners: Work with carriers and brokers having robust networks and ability to adapt under disruption.
- Insurance and force‑majeure planning: Include insurance for delays or losses, and contracts that allow adjustments under extraordinary external events.
Comparative Data & Case Examples
- Avalara’s state of global cross‑border eCommerce report (2023‑24): Shows that top challenges cited are customs delays (43%), customs regulatory compliance / HS codes (41%), and supply chain cost increases (41%).
- ePost Global 2025 Shipping Optimization Analysis: Studied 15.6 million shipments worth USD 421 million, found ~73% of product categories are tariff‑sensitive; ~42% of shipment value tied to high‑complexity customs categories.
- Purolator International: Highlights clearance delays, complex paperwork and HS code issues as primary concerns for supply chain leaders.
- Forbes Council piece: Recommends GPS/traffic monitoring to avoid congested crossings, emphasizes security and communication, and partnering with reliable carriers or working in “trusted trader” programs.
Key Strategies & Best Practices
Here are broad strategies and best practices that cut across many of the hurdles:
- Invest in Digital Infrastructure & Visibility
Real‑time tracking, dashboards, interoperability among systems (carrier, customs, warehouse) to see exactly where delays happen and respond early. - Staff and Expertise Development
Hire or train people who understand cross‑border regulations, HS codes, customs laws. Maintain up‑to‑date knowledge as trade policies evolve. - Partnerships & Local Knowledge
Local partners, brokers, 3PLs, local carriers bring insight into border procedures, holidays, inspection practices, common pitfalls, which vary widely. - Flexible & Resilient Supply Chain Design
Include buffer inventory in strategic locations, diversify sourcing and transport modes, maintain fallback routes, prepare for disruptions. - Transparent Customer Experience
Inform customers about potential duties, delays, return policies. Use Delivery Duty Paid (DDP) models or clearly communicated Incoterms to reduce surprise charges. - Use of Automation & Pre‑Clearance Tools
Automate documentation, use pre‑clearance where possible, use customs membership/trusted trader programs, apply digital submission of documents.
Conclusion
Cross‑border shipping is more complex and risk laden than many realize, especially in the current geopolitical and regulatory climate. From customs delays, hidden costs, documentation inefficiencies, to infrastructure constraints and policy volatility, the hurdles are many—yet surmountable. Businesses that proactively address these issues—by automating compliance, building flexibility, partnering smartly, investing in visibility, and keeping abreast of trade policy—can not only mitigate losses but turn cross‑border shipping into a competitive advantage.
The global marketplace may be full of hurdles, but it’s also full of opportunity. Those who map the obstacles clearly, invest in solutions, and stay adaptable will be best positioned to thrive.
