The challenges Mexico’s intermodal transport faced this year have directly impacted the movement of containers across the country and the region.

In September of this year, the International Road Transport Union (IRU) participated in a conference together with stakeholders from North America. The conference touched upon multiple factors contributing to the hurdles in the market.

Overview of challenges

Infrastructure issues, driver shortages, border challenges and decarbonisation measures were among the factors discussed at the conference.

Industry experts highlighted that driver shortages are expected to get worse if not addressed soon. The need to improve working conditions and provide training are two of the solutions the participants proposed.

Border crossing issues, such as the closure of the ports of entry in Texas, brought nearly 19,000 trucks loaded with $1.9 billion of goods to a standstill in October. A Bloomberg report said Mexico’s biggest trucking group described the inspection procedures at the borders as “absurd.”

Even decarbonisation strategies adopted in the region are weighing down on the trucking market.

The steps taken by the state of California to boost the use of electric vehicles were met with the lack of sufficient charging stations across the border.

Electricity production and vehicle costs outside of the United States were not considered when the measures were adopted, say experts.

Impact of challenges on the market

The market currently witnesses increases in fuel costs, spare parts and drivers’ salaries due to the mentioned challenges.

Even with adjusted salaries, better working conditions in the United States still encourage Mexican truckers to migrate, which directly impacts the availability of drivers. It is estimated that 20% of cargo trucks in Mexico are off-road due to a lack of qualified drivers.

In addition, some security issues have been contributing to the situation in Mexico. Experts spoke of an increase in criminal activities and demonstrations on specific roads and areas of the country.

Crimes were mainly reported in highly industrialised areas where warehouses and distribution centres are.

Impact on cargo flow in and out of Mexican ports

Congestion at container terminals and the time required to complete a transaction at a port add to service delays.

Freight forwarders are experiencing delays for services assigned in rail-truck mode, specifically in the assignment of platforms and departure to transit.

According to Kuehne+Nagel sources, currently, there is an average delay of 11 days, and trucks could face a queue that could last 10 hours to enter the terminal.

Please consult our latest update for an overview of the situation at Mexico’s main ports. In addition, do not hesitate to contact your Kuehne+Nagel representative for inquiries about your shipment.