Mexico OTR Cross Border
Last week we covered the overall customs process which is critical to ensure Mexican cross border shipments are processed properly. If you are shipping cross border strongly suggest you hire a tenured customs broker with Mexico experience as we shared last week. There is $1 Billion USD worth of goods shipping daily across the Mexico border and this number is expected to grow.?Of the $1 billion worth of goods, 70% will move by truck across the Mexican border, any given day the freight index is 1 shipment going to MX versus 12 coming back per day.
This week we will look at OTR (Over the Road) shipping to and from Mexico. There are considerable differences and challenges versus shipping cross border from USA to Canada back and forth. One significant difference is a Canadian driver can cross into the USA and a US driver can cross into Canada driving their own tractor. The drivers with a legal passport can cross the border ( interstate & provincial rules apply), major rule a Canadian registered driver cannot run interstate shipments, US driver cannot run provincial freight.
General rule, a Mexico shipment requires a Mexican National driver to manage/drive the shipments inside Mexico. US or Canadian carriers that have terminals and hire Mexican drivers can provide continuous service which are the exception. This is the reason a considerable amount of freight is transloaded or trailer exchange at terminal on the US side of the border. The Mexican carrier brings the freight to a transloading facility in the US, the freight is moved from the Mexican trailer to the US/CDN transport companies’ trailer. Paper work is provided and the shipment continues to the final consignee.
Shipments that cannot be transloaded are handled 2 ways. The most common is the US/CDN carrier will bring their trailer to a secure yard in the US. The Mexican shunter/driver will pick up the empty trailer and paperwork. They will take the trailer to be loaded directly in Mexico, once completed the customs docs will be added to the paperwork package and the Mexican shunter will bring back to the yard in the US and US/CDN carrier will take possession of their trailer and paperwork.
The direct option requires carriers from the US & Canada to have established Mexican authorities, hire Mexican nationals. This allows them to move their own trailers, this is referred to as direct or continuous shipping as the freight stays in the same trailer throughout the process.
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Southbound vs. Northbound Trucking Process
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Cost and challenges when shipping cross border to and from Mexico are considerably higher than shipping cross border Canada and USA. ??
Manufacturers and shippers have to factor additional costs as per the list below:
The real # shared by Chamber of trucking in Mexico is 50 per day.? Over the last 5 years, there have been 85,000 trucks high jackings occur. There was 7,862 violent high jackings in 2023 which was up 3% from 2022, security is a real issue and challenge when shipping cross border to and from Mexico.
Shippers that have worked with Mexico have experienced customs brokers, experienced transportation brokers or carrier to manage the process. Experienced transportation suppliers provide value as they understand the processes, risks involved to advise shippers properly. They have the teams in place to manage and execute the process.
Will have guest authors to provide their valuable knowledge on Intermodal and insurance when shipping Mexico cross border.
Thanks for reading
I ship Freight in North America. Your Quality Provider of Trucking and Logistics Services.
7 个月Awesome as always Bill
Observer of the Railroad Industry???? ??
7 个月????????
Matt Silver also did a great article on Mexico. Encourage all who are going to move freight cross border to and from MX to learn what is involved.
Senior Vice President- Intermodal
7 个月Great article as always my friend
Business Development Manager/ Supply Chain/ North & Central America/ import-export CAN-USA-MEXICO /Transportation/Logistics/ Procurement/ Custome Service
7 个月Great!!