One of the biggest challenges facing US transportation in 2024 will be the uncertainty at the US–Mexico border. In the latter part of 2023, disruptions to trade outside the normal scope due to a variety of factors, mainly migration, came into play.
The US government has slowed the inspection of trailers at the southern border of Texas to react to the influx of migrants. Trucks experienced delays of six to 12 hours, even multiple days, holding up about 8,000 trailers and $1 billion in US goods. Specifically, in El Paso, the daily shipment volume entering the US decreased 50% due to the delays. More recently at the Columbia Bridge crossing in Laredo, Texas, the Texas Department of Public Safety (DPS) implemented rigorous inspection protocols of every incoming truck, creating hours-long backlogs at the border.
Navigating these challenges is possible by partnering with a trusted 3PL or 4PL that can help divert routes to alternative crossing points and minimize delays while offering supply chain flexibility.
As Mexico continues to grow as America’s biggest trading partner, cities on both sides of the border are working on expanding warehouse space to meet increased demand. It is estimated that Laredo currently has a 10 million-square-foot deficit of warehouse space that city leaders hope to alleviate over the next decade. We’re seeing nearshoring investments increase in factories without the product output as of yet and that will create major issues in the near future.
When these factories come online, I don’t believe the Mexican trucking industry can handle the demand surge. Driver shortages exist now in Mexico as well as the US and with higher interest rates, there will not be enough Mexican capacity to accommodate the increased shipment production when demand surpasses supply. Acting as a transactional buyer now will hurt shippers in the future.