Cannabis logistics firms operate under a dual framework: federal prohibition and varied state regulations. Despite legalization in many states, cannabis remains a Schedule I substance federally, making interstate transport illegal. Consequently, true state-to-state cannabis transport is off-limits—requiring operators to structure entirely separate supply chains within each legal jurisdiction.

State-Specific Licensing & Regulation

Each state demands cannabis transporters register under local agriculture or commerce authorities. Firms must secure state-specific licenses and adhere to track-and-trace mandates—such as METRC or BioTrack—to log every gram for visibility and audit trails. Vehicles must display no external cannabis identifiers, drivers must meet age and training criteria, and real-time GPS monitoring is often required.

Seed-to-Sale Technology & Documentation

Robust software systems integrate seamlessly with state databases, registering cultivators, processors, and distribution movements. They generate real-time manifests and Certificates of Analysis (COAs) detailing THC levels and lab testing—which must accompany every load.

Security and Insurance Protocols

Cannabis transporters layer in armed or unarmed personnel, armored vehicles, alarm systems, GPS tracking, and sealed, tamper-evident packaging to deter theft and ensure product integrity. They also pursue specialized insurance, despite high premiums, and address challenges stemming from federal illegality—banks often refuse them accounts, forcing cash-heavy operations.

Testing and Product Integrity

Before sale, every product batch undergoes lab testing in licensed facilities to confirm cannabinoid content and safety (e.g. absence of pesticides or mold). Transporters must ensure that their COAs match state regulations and accompany shipments.

Challenges in State-to-State Cannabis Logistics

Federal Illegality

Because cannabis remains federally illegal, crossing state lines is technically a felony under the Controlled Substances Act. While legally grown hemp (≤0.3% THC) may travel interstate under the 2018 Farm Bill, marijuana cannot.

Regulatory Patchwork & Seizure Risks

States enforce differing standards—e.g., THC testing thresholds or labeling requirements: some use total THC limits; others measure only delta-9 THC. Discrepancies have triggered seizures—even in compliance—with Border Patrol confiscating legal state shipments in New Mexico.

Banking and Insurance Limitations

Federal banking restrictions force many logistics firms into cash transactions, increasing theft and accounting risks. Insurance coverage is limited and costly.

Operational Complexity & Cost

Logistics operators must skillfully manage individualized routes, driver training, packaging, manifests, and state-compliant vehicles in each jurisdiction. These redundancies drive up overhead and constrain economies of scale.

In Summary

Cannabis logistics companies ensure compliance by operating siloed, intrastate supply chains with tightly controlled licenses, traceability, documentation, security, and testing protocols. Despite state legal frameworks, federal prohibition complicates everything—from transport to financial services—while inconsistent regulations create compliance hazards. Until federal rescheduling—or consistent national standards—are enacted, cannabis logistics must remain nimble, localized, and rigorously audit-ready.

Read More: Mitigating Risk in Cannabis Logistics: How Companies Secure High-Value Shipments