Mexico Shipping Update: Week of March 15

Mexico Shipping continues to face equipment shortage and longer border crossing times heading into Q2.

As the first quarter of 2021 comes to an end, we are bracing ourselves for one of the most challenging spring seasons in the transportation industry yet.

Market volatility across the southwest reached all-time highs as winter storms decimated key shipping states like Texas over the past several weeks, and there are no signs of things slowing down heading into the spring months.

The cross-border disruptions prevalent in 2020 have certainly carried over into 2021 and could escalate in the short-term.

What can we expect in Q2 for Mexico & cross-border shipping?

  • Increased capacity constraints fueled by a surge in freight demand
  • US truckers reducing short mile runs (i.e., Laredo to Dallas, Houston) to maximize their revenue on longer hauls
  • A tight US domestic market causing a shortage of US equipment in Mexico for direct trucks
  • Shortage of US linehaul drivers worsened by upcoming produce season
  • Longer border crossing times creating a shortage of border agents
  • Longer transit times for door-to-door cross-border freight
  • Stiff increases in cross-border and general transportation rates

So, with longer wait times and capacity deficits in the forecast, what can you do to combat the challenges?

Here are some cross-border shipping best practices to help navigate the terrain in Q2:

  • Consider transloading at the border, allowing you to connect with a wider carrier network on the US side
  • Advanced load planning to help with equipment sourcing and planning
  • Plan for repositioning costs by moving empty equipment from the border into Mexico to gain the needed capacity, particularly US equipment for direct truck service
  • Leverage any southbound volumes to help create your own capacity
  • Plan for increased lead time up to 3-5 days of additional transit time on northbound loads
  • When possible, be flexible with your pickup & delivery dates
  • In case of rejections, consider shifting to a spot market rate to secure additional capacity for time-sensitive loads

At Redwood, we are diligently working to stay ahead of market conditions and capacity changes.

We do this with constant communication with our carrier partners and industry experts, and statistics. Our commitment is to provide you, our valued business partner, with proper visibility and capacity solutions to help mitigate the rising transportation costs and ensure minimal disruption to your cross-border operations.

If you need help with any cross-border shipments, reach out to us, and one of our specialists will get in touch with you.