Growth of cross-border freight brings concerns on capacity, driver shortage
Summary
He also said, “The shifting of the center of gravity of motor vehicle production towards the southern USA makes Canadian auto parts imports less attractive due to longer transportation distances. [Related: Cross-border freight on the rise at both borders] As Mexico continues to capitalize on the benefits of nearshoring, and as more manufacturing facilities are developed, there’s concern of capacity tightening in the region. [Related: Surge of cargo theft is hitting us like lightning, experts say] There isn’t infrastructure in Mexico to support the growth needed on the carrier side too, said Ross Spanier, chief revenue officer at R&R Family of Companies. “The companies establishing operations in Mexico want to secure the transportation services, offering to pay higher rates driving the market to a more expensive situation," said Scott Frederick, CMO and LTL carrier relations at Logistics Plus. With the influx of freight, Mexico dealt with increases in driver salaries, insurance premiums, tolls and fuel, in addition to a difficult exchange rate between the dollar and the peso, similar to U.S. carriers.