Just finished reading an article on Vision and Magazine, by Richard Armstrong, Chairman of Armstrong & Associates, inc, talking about Trucking in Mexico.
In the article, he based some various industry facts, like trucking in Mexico, being a $77 billion dollar industry in 2015. How it is growing in size each year, more than 130,000 trucking companies are already doing business in the country, and the most amazing fact is that 111,000 of them, only operate between 1 or 5 trucks, compared to only 25 carriers, that have at least 1,000.
The Article mentions several national and international carriers.
Let us focus on the second option, international, where Mexico accounts for 12.5% of total U.S. imports, and more than 3.5 million containers of cross border each year, with an average freight value of $54,000.
This presents a lot of opportunity for several businesses that want to do business in Mexico, and where Porteo Group’s expertise can come in handy.
As we are, and have been cross border experts for the past 25 years.
The article also focuses on how a lot of businesses north of the border of Mexico, are switching their factories and production plants to Mexico, to take advantage of the currency exchange rate, that has led to manual labor being cheaper than in China. Businesses like automobile, who already have set an estimate of 30 assembly plants all over Mexico, have started that trend, not to mention industries like electrical machinery and computer equipment part companies.
The trend keeps increasing each day that the currency keeps modifying, at one point, twenty pesos, equals 1 U.S. dollar. For Companies north of the border, this presents huge cost savings opportunities.
Porteo Group has over 23 distribution centers all over Mexico, and with its office in Houston, has the connections and the necessary network and cross border logistics expertise, to help any company make it adaptation into Mexico.
So give us a call, and do not let this opportunity pass you for granted.
By Richard Armstrong
Armstrong & Associates Inc.
Trucking in Mexico generated an estimated $77 billion in revenue, in 2015
growing in size and sophistication. There are more than 130,000 trucking companies in Mexico, including 111,000 that operate between one and five trucks.
There are 25 carriers with at least 1,000 trucks.
The market is divided into intra-Mexico and cross-border import/export trucking with the United States. Domestic trucking’s core is the Mexico City area, connecting to major cities such as Monterrey
Autotransportes de Carga Tres Guerras is the largest trucker, with estimated annual revenue of S236.5 million. The company operates 95 straight trucks, 565 tractors and 200 van trailers.
Many of its operations involve shipper-owned trailers and containers. Mexico is the second largest market for US. Exports and the largest country for imports into the United States.
Mexico accounts for 12.5% of total U.S. imports, and more than 3.5 million containers and/or trailers cross the border each year. The average truckload freight value is about 54,000.
Cross-border traffic flows are about 60% northbound and 40% southbound. Trailer capacity for
northbound movements can be very tight during the summer produce season. The primary commodities shipped to and from
Mexico are electrical machinery, vehicles and computer equipment parts. There are 30 automotive assembly plants operating in Mexico.
Tractors operated by Mexican carriers without full U.S. operating authority are restricted to a small zone just across the border. In effect, this reduces most operations to shuttling trailers between U.S.
and Mexican carriers.
While some U.S. -based freight carriers have Mexican subsidiaries Celadon Group owns Servicio de Transportacion Jaguar and Swift Transportation owns Trans-Mex inc. current law prohibits foreign ownership of Mexican truckers. As a result, most U.S. trucking companies have relationships with
Although many Mexican carriers concentrate on intra-country operations, Super Transporte Internacional is an example of a truckload and flatbed carrier that emphasizes cross-border operations. Typically, the company that has estimated annual revenue of $50.5 million will pick up a load and deliver it to a terminal in Laredo, Texas When cleared by Mexican custom, the load is moved to a U.S. carrier terminal. Once approved by U.S. authorities. it is transported by the U.S. carrier to its destination.
Since 2014, a small number of Mexican carriers have obtained permanent U.S. operating authority to haul general commodities, but loads picked up in the United State must be destined for a foreign country. This restriction on cabotage is marked contrast to Europe where carriers are allowed to handle up to three intra-country loads after delivering an inter-country load.