Three issues are causing critical concerns in U.S.-Mexico freight flows, including the forthcoming elections in both the U.S. and Mexico, increased border security protocols, and rigorous inspection procedures, according to a report from fourth party logistics (4PL) provider Redwood Logistics.
Together, those factors are hindering trade flow and leading to considerable trucking delays, said Redwood, which has offices in Chicago and Monterrey.
At the same time, Mexican trucking companies are also currently in limbo, anticipating new investments in Mexico's infrastructure and awaiting the resurgence of demand in the United States. The situation is exacerbated by the strengthening Mexican peso against the U.S. dollar, which may undermine the competitiveness of Mexican exports.
"Compliance and trade regulations, such as the 'Carta Porte,' are crucial to ensuring the swift movement of goods across the border," Jordan Dewart, President, Redwood Mexico, said in a release. "A balanced approach that prioritizes trade efficiency while addressing immigration concerns responsibly is going to be crucial to keep cross-border trade flowing seamlessly."
Redwood’s analysis indicates that the recent pivot from cargo inspections to immigration enforcement has continued to escalate freight wait times substantially at southern border crossings. The shift in focus from quick transportation to thorough inspections threatens the fluidity of cross-border trade.
"Adjustment to these new compliance measures is imperative to sustain the robust trade relationship between Mexico and the United States," Dewart said. "The current holding pattern on manufacturing in Mexico, awaiting U.S. demand recovery and infrastructure investment, places Mexican trucking companies in a precarious position. It's a critical moment for us to seek innovative solutions and maintain flexibility to adapt quickly to changing market demands."
