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  • Mexico cross-border freight numbers surge

    December 05, 2024 |

    For the majority of 2024, cross-border freight in Mexico has been booming while Canada’s numbers have weakened.

    According to the most recent numbers from the Bureau of Transportation Statistics available as of press time, truck freight valued at nearly $91 billion was hauled across the borders in August. That was an increase of 3% compared to August 2023 and represented a 4% increase from July.

    August’s year-to-year modest increase was the result of a large increase in Mexican freight that offset another drop in Canadian freight. Trucking cross-border freight had been trending upward since November 2020. Only four decreases occurred between then and August, three of which took place within the previous 12 months.

    Cross-border freight hauled by trucks across the U.S. southern border increased by 10% compared to August 2023, led by a sustained surge in computer-related freight that began in January. At the northern border, another fairly large drop in vehicle cargo that had been going on since May weighed down overall Canadian freight to a 5% decrease.

    The top three truck commodities at the northern border were computers/parts ($6.1 billion, down 3%), vehicles ($4.9 billion, down 20%) and electrical machinery ($2.6 billion, down 0.7%). At the Mexican border, top commodities included computers/parts ($14 billion, up 41.5%), electrical machinery ($12 billion, up 4%) and vehicles ($7.8 billion, up 4%).

    By weight, cross-border freight hauled by trucks was down by 3% compared to the previous year and dipped by 1% compared to July. Year-to-year, North American freight by weight increased only seven times between July 2022 and August. Four of those increases occurred in 2024.

    Top Canadian commodities for trucking by weight included wood (down 3%), vehicles (down 31%) and paper (up 3%). In Mexico, the top three commodities were vehicles (up 4%), computers/parts (up 0.2%) and edible vegetables/roots (up 3%).

    Surge in Mexican imports

    From the beginning of 2024 through August, Mexican imports increased rapidly.

    A spike in computer-related cross-border freight significantly contributed to that rise.

    In its latest holiday outlook report, fleet management technology company Motive pointed out that retailers are shifting nearshoring operations to Mexico. Doing so provides companies with shorter lead times and lower tariffs, in addition to mitigating global supply chain risks.

    “Mexico’s proximity to the U.S. offers more than convenience – it enables faster response times and better adaptability to unexpected disruptions, such as labor strikes or geopolitical conflicts that may affect imports from other regions,” Motive stated in the report. “By strategically balancing imports from both China and Mexico, retailers are minimizing risks while creating more resilient supply chains.”

    Cross-border imports by trucks coming through the Laredo port jumped by more than 24% in August, marking a record high at that crossing.

    The trend was expected to continue. Although Motive expected cross-border freight out of Mexico to peak in October, it also anticipated continued growth in 2025.

    Uber Freight is one company reaping the benefits of the surge in Mexican cross-border freight. On Oct. 22, the company announced a 77% year-to-year increase in cross-border new business production. CEO Lior Ron also pointed to companies moving nearshoring to Mexico.

    “As nearshoring transforms supply chains and cross-border trade expands, our priority is ensuring that our shipper partners have the resources and support they need to thrive in this evolving landscape,” Ron said in a statement. “By deepening our presence in Mexico and strengthening our team with industry-leading talent, we’re committed to making cross-border logistics simpler and more efficient for our customers, helping them unlock new growth opportunities and navigate challenges with ease.”

    Uber Freight claims to be one of the largest warehouse providers in Laredo. The company manages more than 2,000 daily cross-border freight shipments. LL

     

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