Redwood MX Update: August 2026
1. Key Affecting Factors
Mexican Fuel: $27.013 MXN/Liter
U.S. Fuel: $6.529 USD/Gallon
Foreign Exchange: $17.3015 MXN/USD
The national average price of diesel in the United States hit a record $6.05 per gallon on September 11, 2026. This price marks a significant jump from the $3.70 recorded during the same period last year. The increase is linked to disruptions in international oil flows and geopolitical tensions in the Middle East. Higher fuel costs are raising operating expenses for trucks and other means used to transport goods. These pressures may be passed on to customers through fuel surcharges and other adjustments in shipping rates. Products that require frequent transport or refrigeration could be especially sensitive to rising logistics costs.
The cancellation of B1 visas for Mexican operators once again created a barrier to cross-border transportation between Mexico and the U.S. This situation caused a temporary blockade at the Mexicali-Calexico border crossing in early September, which was later lifted. Authorities and industry representatives are holding working sessions to review the cases and provide more certainty to carriers. The uncertainty about the interpretation of these operations could pose risks for operators who carry out cross-border transport between the two countries.
The freight transportation sector has recovered its momentum, with its strongest growth since 2023 (April-June period). PIB (Producto Interno Bruto) for the freight transportation sector reached an annual rate of 3.37% in the second quarter of the year, after falling 1.18% during the same period in 2025. In the current cross-border context, the economy has regained some of its strength despite prolonged uncertainty surrounding the TMEC and rising diesel prices, among other factors, posting its strongest growth rate since 2023.
2. Transportation News & Challenges
The U.S. plans to reopen the Santa Teresa port in New Mexico for Mexican live cattle shipments on September 24. This is an important step because the port handled almost 500,000 cattle in 2024, representing around 40% of total U.S. cattle imports from Mexico. Cattle shipments were stopped because of concerns about the spread of the New World screwworm, which can seriously affect livestock. The suspension of imports also created problems for U.S. meatpackers because they had fewer cattle available for processing. As a result, some beef processing plants were closed and beef prices increased for consumers. The U.S. has already reopened another port in Arizona, where more than 6,000 cattle have entered since trade resumed in late August. Officials are also considering reopening other ports, including Columbus, New Mexico, and Nogales, Arizona.
The World Trade Organization (WTO) reported that global merchandise trade shows a positive trend during the third quarter of 2026. The Merchandise Trade Barometer reached 102 points, above the reference level of 100 and the 101.7 recorded in June. A value above 100 indicates that trade volumes are above their usual trend. The growth is being mainly driven by demand for electronics and goods related to AI. However, container shipping recorded an indicator of 99.6, slightly below the trend. This shows that, while trade is growing, there are still risks related to logistics, geopolitical tensions, and shipping costs.
Disruptions in the Strait of Hormuz are creating extra pressure on global supply chains. UNCTAD warns that the rise in energy, transportation, and financing costs could especially affect small and medium-sized businesses. SMEs play an important role in global chains since they make up a significant part of
employment and worldwide economic activity. Higher costs can reduce these companies' margins and make it harder for them to keep operations competitive. In this situation, some companies might have to cut production, delay investments, or even leave certain markets. Losing small suppliers could increase supply chain concentration and reduce their ability to respond to future disruptions.
Mexican authorities arrested Ángel Guerrero Carrillo in Zapopan, Jalisco. He has been identified by officials as a suspected logistics operator for a criminal organization. According to Freight Waves, he is accused of coordinating activities related to the transport and distribution of fentanyl and other synthetic drugs to Seattle and Tacoma, Washington. The arrest came as a result of an intelligence exchange and cooperation between Mexican and U.S. authorities. The case highlights the security risks that can arise within crossborder logistics operations. For transportation and logistics companies, situations like this reinforce the importance of having compliance processes, supplier verification, and security controls in place. It also underscores the need to maintain proper traceability of operations and the parties involved in an international supply chain.
Mexico recently lifted a five-day restriction on empty trucks crossing from Eagle Pass, Texas, to Piedras Negras, Mexico. The restriction started on September 9 and caused around 700 trucks
to become stranded on the U.S. side of the border. Because of this situation, the number of trucks crossing the border dropped significantly. The problem affected carriers and companies that depend on this route for their cross-border operations. It also created extra costs because trucks and equipment could not return to Mexico as usual. Industry representatives estimated that the disruption could cause losses of up to $1 million per day. The situation also raised concerns about delays, equipment shortages, and higher transportation costs. After discussions between industry representatives and authorities from both countries, the restriction was removed. This allowed empty trucks to cross again and helped transportation operations return to normal.
3. Foreign Direct Investment - Mexico
VUTEQ opened its second plant in Apaseo el Grande, Guanajuato, as part of an expansion focused on the automotive industry. The project represents a $100 million investment and created 135 new jobs in the region. (Automotive Components, Japan)
Holcim has invested more than $500 million in Mexico over the 
past five years, focusing on innovation, operational efficiency, decarbonization, waste management, and new business development. (Building Materials, Switzerland)
Fuji OOZX will invest $10.2 million to expand its operational capacity in Mexico by expanding its plant in San José Iturbide, Guanajuato, and adding new production lines for engine valves. The project will increase the company's production capacity to more than 2.3 million parts per month. (Automotive Components, Japan)