CURRENT DEVELOPMENT, TENDENCIES AND PROBLEMS AFFECTING CROSS-BORDER LOGISTICS IN INTERNATIONAL TRADE

ABSTRACT

This article examines current development trends and problems affecting cross-border logistics in international trade. Global trade is expanding due to technology, e-commerce, and globalization. However, challenges such as customs delays, weak infrastructure, fuel price fluctuations, labor shortages, port congestion, and geopolitical risks continue to disrupt logistics operations. This article explains the current situation in cross-border logistics, highlights key trends, identifies major problems, and suggests solutions to make trade faster, cheaper, and more reliable. The article also suggests practical solutions, including digitalization, infrastructure investment, workforce training, sustainable practices, and risk management strategies aimed at making global trade faster, cheaper, and more reliable. At this time, it identifies persistent challenges like custom delays, weak infrastructure, labor shortages, port congestion, volatile fuel prices, and geopolitical instability, that disrupt supply chains and raise transportation costs. Using a comparative analytical approach based on recent global data and industry reports, the paper highlights the extent to which these factors impact trade performance across regions.

АННОТАЦИЯ

В данной статье рассматриваются современные тенденции развития и проблемы, влияющие на трансграничную логистику в международной торговле. Мировая торговля расширяется благодаря развитию технологий, электронной коммерции и процессам глобализации. Однако такие вызовы, как таможенные задержки, слабая инфраструктура, колебания цен на топливо, дефицит рабочей силы, перегруженность портов и геополитические риски, продолжают нарушать логистические операции. В статье анализируется текущее состояние трансграничной логистики, выделяются ключевые тенденции, определяются основные проблемы и предлагаются пути их решения с целью сделать международную торговлю более быстрой, дешёвой и надёжной.

Также предлагаются практические решения, включая цифровизацию, инвестиции в инфраструктуру, подготовку и обучение кадров, внедрение устойчивых практик и стратегии управления рисками, направленные на повышение эффективности международной торговли. В то же время подчёркивается наличие устойчивых проблем, таких как таможенные задержки, слабая инфраструктура, нехватка рабочей силы, перегруженность портов, нестабильные цены на топливо и геополитическая нестабильность, которые нарушают цепочки поставок и увеличивают транспортные издержки. Используя сравнительно-аналитический подход на основе актуальных глобальных данных и отраслевых отчётов, в статье показано, в какой степени данные факторы влияют на показатели торговой деятельности в различных регионах мира.

Keywords: Cross-border logistics; international trade; supply chain; customs; e-commerce.

Ключевые слова: трансграничная логистика; международная торговля; цепочка поставок; таможня; электронная коммерция.

Introduction

Cross-border logistics is all about moving goods from one country to another. It is the backbone of international trade, without it, products like clothes, phones, food, and machinery would not reach buyer on time.

Global trade has grown quickly in recent years because more people buy product online, businesses sell goods internationally, and technology is improving transport, and at the same time, logistics has become more complicated. Different rules in each country, poor infrastructure, rising fuel prices, labor shortages, port congestion, and geopolitical risks slow down trade [1, 2]. The rapid rise of international trade, particularly e-commerce, has transformed logistics into a critical driver of economic development. Business of all sizes now participate in cross-border markets, supported by technological process in tracking, custom automation, and digital payments. Yet, these developments come with growing complexity. The diversity of national regulations, infrastructure quality, and political environments often slows down trade and increase operational costs. Linking producers and consumers around the world, in today’s interconnected economy, no nation can remain self-sufficient. A modern phone, for example, may contain materials from Africa, be assembled in Asia, and sold in Europe or North America. This interdependence underscores the importance of efficient logistics systems that ensure goods reach markets quickly, safety, and at reasonable costs. So, understanding the current trends and problems affecting cross-border logistics is essential for policymakers and companies seeking to strengthen international trade.

Materials and Methods

This study is based on secondary data obtained from international organizations and industry reports, including UNCTAD, the World Bank, the International Maritime Organization (IMO), Drewry Shipping Consultants, and DHL Logistics Reports. These sources provide statistical information on global trade volumes, logistics performance, customs efficiency, and container shipping cost. The research applies statistical data analysis to identify recent trends in cross-border logistics and comparative analysis to examine differences in logistics efficiency across regions. In addition, an analytical approach is used to identify key problems affecting cross-border logistics and to evaluate practical solutions using selected case examples from leading global logistics companies. 

Results and Discussion

Global trade is expanding, in 2024, the total weight of goods traded worldwide reached reached 11.2 billion tons, which is higher than the previous year [1]. E-commerce and international business growth are driving this increase.

However, moving goods internationally is still challenging. Customs clearance in Africa and some parts of Asia often takes 5-7 days, while in Europe and North America only takes 1-2 days. Container shipping costs also change a lot, a container from Asia to Europe cost around $4,300 in early 2022 but dropped to $1,761 in 2025 [3].

Even with these fluctuations, technology is helping logistics companies improve efficiency. Digital tracking, route optimization, and predictive analytics reduce delays and help businesses plan better. But external factors such as fuel prices, regulations, and geopolitical events still create uncertainty. Over the past decade, global trade has expanded rapidly, driven by increasing consumer demand, technologically innovation, and international investment according to UNCTAD, the total weight of goods traded worldwide in 2024 reached approximately 11.2 billion tons, showing steady growth compared to previous years. The integration of developing economies into global value chains and the expansion of e-commerce platforms such as Amazon, Alibaba, and Jumia have significantly contributed to the trend.

Despite this progress, logistics efficiency varies widely between regions. Customs clearance procedures in Africa and parts of Asia still take between five and seven days, while in Europe and North America, goods typically clear customs within one to two days. Such discrepancies create competitive disadvantages for firms operating in regions with slower processing times. Moreover, container shipping cost remain volatile, for instance, the cost of shipping a standard container from Asia to Europe averaged $4,300 in early 2022 but dropped in around $1,761 by 2025.  This fluctuation reflects both market adjustments and external pressures such as energy price changes, pandemic recovery effects, and shifts in global demand.

While technology has improved logistics performance through digital tracking, route optimization, and predictive analytics, the sector remains vulnerable to fuel price fluctuations, labor shortages, and geopolitical tensions. Event such as the Russia-Ukraine conflict, Middle East instability, or the disruption of the Red Sea route have revealed how fragile global supply chains can be.

Let us consider key trends in cross-border logistics. They are following.

1. Technology is helping.

Artificial Intelligence, smart tracking, and digital platforms make shipping faster and more reliable. Companies can monitor shipments in real time and plan routes to avoid delays. Businesses using these tools have reduced delivery delays by up to 20%. Technology continues to redefine the logistics industry. Artificial Intelligence (AI), Internet of Things (IoT), blockchain, and data analytics help companies improve visibility and control over their supply chains. Smart tracking systems allow real-time monitoring of goods, reducing theft, loss, and delay. Digital freight platforms now connect shippers and carriers instantly, cutting administrative time and increasing transparency.

Companies adopting digital tools have reported up to a 20% reduction in delivery delays and better route optimization. AI-driven analytics also forecast potential disruptions, helping businesses plan alternative routes or suppliers. For example, DHL and Maersk use predictive analytics to anticipate congestion at major ports and adjust delivery schedules accordingly.

2. Online shopping is growing.

Consumers expects fast and accurate deliveries, even from other countries. Companies respond by building regional warehouses, improving last-mile delivery, and increasing shipment visibility. Online shopping has reshaped global trade by enabling even small businesses to reach international customers. Platforms such as Alibaba, Amazon Global, and Shopify have made cross-border transactions more accessible, yet they also place immense pressure on logistics providers to meet consumer expectations for fast and reliable delivery. 

To meet these expectations, companies are establishing regional warehouses and micro fulfilment centers closer to key markets. For instance, Amazon has set multi-country logistics hubs in Europe to reduce shipping time from days to hours. The last mile delivery segment getting goods directly to customers doors has become one of the most competitive and innovative parts of the logistics chain

3. Globalization and trade expansion.

More countries are exporting goods and services. This creates opportunities but also requires businesses to follow multiple regulations, manage different currencies, and coordinate across several supply chain. Now that more countries are now actively participating in global trade through regional agreements such as the African Continental free Trade Area (AFCFTA), ASEAN Economic Community, and the European Single Market. These frameworks promote tariff reduction, customs harmonization, and infrastructure improvement, fostering smoother trade flows. However, they also require stronger coordination among national authorities to avoid bureaucratic overlaps and inconsistent regulations.

4. Sustainability matters.

Companies are focusing on reducing carbon emission. They are using electric vehicles, renewable energy powered warehouses, and recyclable packaging. International regulations such as IMO 2020, also push logistics providers towards greener solutions. Sustainability has become a key priority in logistics companies are increasingly adopting eco-friendly technologies such as electric vehicles, hydrogen-powered trucks, and renewable energy warehouses. Government is also introducing stricter environmental policies, such as the IMO 2020 Sulphur Cap Regulation, which limits Sulphur emissions from ships. Furthermore, customers are becoming more environmentally conscious, preferring brands that reduce carbon footprints. Major logistic firms, including DHL and UPS, are investing in carbon offset projects and biodegradable packaging materials to align with global sustainability goals [4].

Major problems and solutions in cross-border logistics in international trade are shown in table 1.

These solutions show that logistics problems are manageable if countries and companies invest in technology, infrastructure, and workforce training [5].

Table 1.

Major problems and solutions in cross-border logistics in international trade [1]

Let us consider case examples.

1. Amazon and Alibaba: Both companies use AI and digital tracking to reduce delivery delays and manage customs procedures efficiently.
2. Port of Rotterdam: Europe’s busiest port uses modern cranes, scheduling software, and digital systems to handle congestion, though busy season still cause delays.
3. DHL Fuel Surcharges: companies adjust shipping prices when fuel costs rise to keep logistics sustainable while maintaining profitability [6].

Each of these problems has a direct impact on trade efficiency and cost. Regulatory complexity remains one of the most persistent issues, particularly for small and medium enterprises (SMEs). Customs documentation, tariffs, and non-tariff barriers create delays and uncertainty. Adopting digital customs systems and standardized trade procedures can significantly reduce clearance time. Weak infrastructure, especially in developing regions, limits capacity and reliability. Investment in ports, railways, and logistics corridors such as Africa’s LAPSSET corridor Project or China’s Belt and Road Initiative can be enhancing connectivity and stimulate trade. Similarly, addressing labor shortages through skills development and automation will ensure smoother operations in ports and warehouses.

Fuel prices volatility is another major concern, many logistics companies apply fuel surcharges to balance operational costs. However, longer-term solutions lie in adopting energy efficient vehicles and exploring alternative fuels. Geopolitical risks require flexible supply chain strategies, including supplier diversification and contingency planning. Finally, port congestion can be mitigated through better scheduling, infrastructure expansion, and the use of digital port management systems [4].

I will take this example with Amazon and Alibaba are pioneers in integrating digital tools to streamline logistics. They use AI-driven customs clearance and predictive delivery systems to manage cross-border shipments efficiently. By combining big data analytics with automated warehousing, these companies have reduced delivery delays and improved customer satisfaction. The Port of Rotterdam, Europe’s busiest seaport, represents an example of technological modernization. The port uses advanced cranes, scheduling software, and digital systems to handle millions of containers annually. Despite occasional congestion during peak seasons, digitalization has helped the port maintain its position as a logistics leader. DHL’s Fuel Surcharges model demonstrates how companies adapt to external price fluctuations, by adjusting shipping rates based on fuel price trends, DHL ensures that operations remain sustainable without transferring excessive costs to customers.  These examples illustrate that the combination of technology, management can effectively address the core challenges of cross-border logistics [6].

If we look at the future of cross-border logistics will be defined by deeper integration of technology and sustainability. Artificial Intelligence and blockchain will further increase transparency, automation, and trust among trading partners. Drone delivery and autonomous vehicles could revolutionize last mile logistics, while 3D printing might localize some production and reduce shipping demand. At the same time, global challenges such as climate change, geopolitical uncertainty, and the need for resilient supply chains will be require stronger cooperation between governments and the private sector. Companies that embrace innovation, flexibility, and environmental responsibility will lead the next phase of global logistics transformation.

Conclusion

In conclusion, cross-border logistics is growing faster than ever, technology, e-commerce, and globalization are making trade faster and more efficient. However, challenges like customs delays, week infrastructure, labor shortages, fuel price fluctuations, port congestion, and geopolitical risks continue to slow trade.

Cross-border logistics is a dynamic and essential component of international trade. It ensures that goods move efficiently across borders, linking producers and consumers in all regions of the world. Although global trade has expanded rapidly, significant challenges persist, including customs delays, weak infrastructure, labor shortages, port congestion, fuel price fluctuations, and geopolitical instability.

To overcome these challenges, countries and companies must continue investing in digital solutions, modern infrastructure, workforce development, and sustainable logistics practices. The success of future trade depends on coordinated global efforts to create flexible, transparent, and environmentally responsible supply chains. Through technology, cooperation, and innovation, cross-border logistics can evolve into a more resilient system that supports inclusive and sustainable global economic growth.

To improve global logistics, countries and companies must invest in digital solutions, infrastructure, workforce training, and sustainable practices. Cooperation and planning are also key to building logistics systems that are efficient, flexible, and reliable, ensuring goods reach customers anywhere in the world on time and at a reasonable cost.

 Looking ahead the future of cross-border logistics will be defined as technological integration, environmental sustainability, and geopolitical adaptability. The successful logistics systems of tomorrow will be those that are flexible, transparent, and inclusive, capable of maintaining trade continuity even during crises. By aligning innovation with cooperation, the world can build logistics networks that not only move goods efficiently but also contribute to global stability, prosperity, and sustainable development.

References:

1. UNCTAD. World Trade Statistical Review 2025. United Nations Conference on Trade and Development, 2025.
2. World Bank. Logistics Performance Index 2024. Washington DC: World Bank, 2025.
3. Drewry. World Container Index Reports 2022-2025. Drewry Shipping Consultants. 2025
4. International Maritime Organization (IMO). IMO 2020 Sulphur Cap Regulation. London: IMO, 2020.
5. Rodrigue, J-P. The Geography of Transport Systems: 5^th Edition. Routledge, 2020.