More than 500 cross-border trade professionals gathered in Laredo, Texas, on Tuesday for the 9th Annual Modernization of Cross-Border Trade conference, where the U.S. Supreme Court's recent Montgomery v. Caribe Transport II decision dominated discussions alongside evolving cargo security threats and uncertainty surrounding upcoming USMCA negotiations. The event, hosted by Reliance Partners and Borderless Coverage, brought together executives, attorneys, insurers and trade stakeholders as U.S.-Mexico freight faces what organizers described as unprecedented regulatory and operational challenges.
Jerry Maldonado, chairman of the Laredo Motor Carriers Association, opened the conference by highlighting Laredo's status as "the No. 1 inland port in the northern hemisphere" and emphasizing that policy debates surrounding trade, transportation and logistics directly affect freight companies operating through the border city. Mark Vickers, executive vice president of international logistics at Reliance Partners and founder of Borderless Coverage, pointed to long-term supply chain shifts resulting from the pandemic, including increased freight flows through Mexico and the Port of Manzanillo. "There's a number of geopolitical events that have kind of changed everything for us," Vickers said, noting that freight congestion in Los Angeles was mitigated by U.S. companies routing Chinese freight through Manzanillo and trucking it through Laredo.
The Montgomery ruling emerged as the conference's most closely watched topic, with panelists warning that the Supreme Court decision is already prompting insurance underwriters, brokers and shippers to reevaluate carrier-selection practices and liability exposure. Jamie Cannon, senior vice president of logistics services at Reliance Partners, said insurers are scrutinizing broker-carrier agreements, standard operating procedures and carrier-vetting processes more closely than ever before. Luca Winters, vice president for U.S.-Mexico cross-border logistics at Kuehne + Nagel, said the decision elevates "reasonable care" from a compliance concept to a core business function, adding that brokers can no longer claim they've done minimum due diligence. Panelists predicted carrier-vetting practices will become increasingly standardized and technology-driven, with larger brokers potentially gaining market share as customers prioritize risk management.
Cargo theft in Mexico also drew significant attention, with a panel on carrier vetting describing it as "the single most powerful risk management tool" available to companies moving freight between the U.S. and Mexico. Carlos Sesma, senior partner at Sesma Sesma & McNeese, said organized criminals are increasingly relying on fraud, identity theft and digital impersonation schemes rather than traditional hijackings, warning that "companies come into load boards, put their information up and start getting loads, and you never see your loads again." Colton Sadler, chief legal officer at Steam Logistics, noted that while vetting Mexican carriers has historically been more difficult due to limited technology and fragmented data sources, "that's changing." Logan Pearce, head of claims and recoveries at Anova Marine Insurance, urged companies to understand insurance coverage specifics before losses occur, warning that many mistakenly assume cargo insurance will automatically cover every scenario.
The conference comes as shippers no longer accept traditional contractual language that shifts all responsibility once freight crosses the border, instead expecting brokers and logistics providers to demonstrate robust carrier-vetting programs and risk-management controls. Panelists suggested the Montgomery decision didn't create new risks as much as it removed a legal defense brokers had relied upon for years. The combination of heightened legal liability, evolving cargo security threats and potential changes to the USMCA framework means that stronger vetting, better documentation and smarter risk management will be essential for navigating the future of U.S.-Mexico trade.