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    Redwood MX Update: August 2025

    This Month: Mexico’s Driver Shortage Impacts Cross-Border Revenues 

    Welcome to the August edition of Redwood’s Mexico Market Update, which looks at key economic and business trends in Mexico, transportation news, and investments in Mexico throughout August. We’ve created the Mexico Market Update to keep you informed about new developments that have the potential to affect your own cross-border results. 

    One of this month’s most urgent concerns for cross-border shippers? Mexico’s growing driver shortage may be reaching a crisis point. According to the International Road Transport Union (IRU), Mexico has a current shortfall of 56,000 truck drivers, or 9% of all available positions. By 2028, this number is expected to rise to 106,000 vacancies unless corrective actions are taken.  

    As shipments pile up, it’s estimated that each idle truck represents up to $5000 USD in lost sales every week. Shippers are tying up more capital in inventory, paying higher freight rates to secure trucking capacity, and shifting to more expensive modes such as air and rail. Lacking resources, small and medium-sized businesses are hit especially hard. 

    What’s behind the shortage? There are several factors, including an aging workforce, demanding schedules, harsh working conditions, and the increasing incidence of cargo theft.

    If you’re worried about the impact of Mexico’s driver shortage on your cross-border logistics performance and financial results, reach out to the expert team at Redwood Mexico for support. Our deep resources in Mexico include over 200 bilingual experts, six facilities on both sides of the border, and more than 400 carrier partners in Mexico. We’ll help you find the capacity you need, as cost-effectively as possible.

    In general economic trends, both fuel prices in Mexico ($5.328 USD/gallon) and the currency exchange rate ($18.6522 USD/MXN) continue to hold steady.

    Not only is cargo theft increasing this year, but so is the use of physical force. In the second quarter of 2025, 82% of thefts from carriers involved some type of violence. 65% of cargo thefts represented transit interceptions, while 34% occurred during unsecured parking. In Q2, food and beverages were the most stolen products, accounting for 33% of all thefts. Building and industrial products were the second most targeted at 10%, followed by miscellaneous products at 7%. Over 43% of all thefts occurred in just two regions: Puebla (23.5%) and the State of Mexico (20%). 

    Transportation News and Challenges  

    Eagle Pass sees exceptional truck traffic growth 

    There was an impressive 51.7% increase in truck traffic in Eagle Pass, Texas, in Q2 2025 and an even more impressive 73.7% year-over-year increase in the month of July. Increased demand for carrier services and improved customs processing at Eagle Pass have made it a more efficient alternative to congested crossings like Laredo and Otay Mesa. Industry experts believe this shift could mark a trend toward more balanced traffic distribution across different border crossing points. 

    California, New Mexico, and Washington pressed to enforce English proficiency  

    According to the U.S. Department of Transportation (DOT), California, New Mexico, and Washington face losing federal funding unless they enforce English Language Proficiency (ELP) requirements for commercial drivers. In 2024, California received $30.7 million in funding, Washington $9.8 million, and New Mexico $6.7 million. California conducted about 34,000 inspections from June 25 to August 21, resulting in only one ELP violation that resulted in a driver being placed out of service. Washington has conducted more than 6,000 inspections, with only four ELP violations. New Mexico has placed no drivers out of service for ELP violations during that period, according to the DOT. ELP scrutiny has increased following a deadly Florida crash in which a truck driver seemed unable to understand road signage. 

    Americold opens $127 million facility to improve refrigerated shipping

    Americold, in partnership with Canadian Pacific Kansas City (CPKC), has opened a $127 million warehouse in Kansas City, Missouri, to speed up refrigerated shipments across the U.S.-Mexico border. The 335,000-square-foot facility will allow Mexico-bound cargo to be pre-cleared by U.S. Department of Agriculture inspectors, reducing border delays. CPKC aims to reduce costs and improve efficiency by filling more southbound containers with freight, lowering rates for shippers. The facility can accommodate heavier loads due to rail transport, reducing the need for additional containers.

    Rule changes result in global mail suspension to the U.S. 

    Postal organizations worldwide, including Japan Post and Australia Post, suspended shipments to the U.S. Postal Service (USPS) ahead of the August 29 deadline for the removal of the de minimis exemption. This exemption allowed low value imported goods (valued at $800 or less) to enter the U.S. duty-free. Foreign postal services are struggling to comply with the new duty rules, due to unclear customs procedures. DHL and other providers have paused services, especially impacting e-commerce shipments from China. 

    Investment Trends

    As we reported in June, Green Corridors is leading a multi-billion dollar infrastructure project that will link Texas and Mexico through a 165-mile elevated freight corridor. More recently, Green Corridors announced a new $17 billion investment in developing major logistics and industrial centers that will enhance  the role of the Colombia Bridge as a strategic trade corridor. Just three years ago, the bridge only saw 800 daily crossings. Today there are 10,000, and by 2030 over 20,000 daily crossings are projected.

    Foreign companies also continue to invest in Mexico, including these recent announcements.

    Julong, which manufactures cash-processing solutions, is investing $10 million to build an industrial plant in Ramos Arizpe, Coahuila—the company’s first plant outside China. Tokai Kogyo, a Japanese producer of rubbers and resins, has announced an expansion in Aguascalientes, following an investment of $5.3 million in a new production line. Korea-based Kyungshin is investing $50 million in its second plant in Gómez Palacio to manufacture battery modules for Ford.

    Whatever your own cross-border growth opportunities and challenges, you can count on Redwood to help you succeed. Learn more about our cross-border and international capabilities, or let’s start a one-on-one conversation.