Report: Trucking in Mexico Ripe for 3PLs

The trucking market in Mexico, despite its complexities, presents opportunities to third-party logistics providers, contends a new report released by market-research and consultancy firm Armstrong & Associates Inc. 

Trucking in Mexico totaled $60 billion in 2016, according to a new report just released by Armstrong & Associates. The report, Trucking in Mexico: Navigating the Opportunity, which states that last year trucking was a $60 billion industry in the country. It quantifies the Mexican trucking market, presents U.S. and Mexico export and import activity, and outlines the current shipment process for shippers and truckload carrier/3PL providers. In addition, Ryder and a dozen other U.S.-Mexico truckload carrier/3PLs are profiled in the report.

“Trucking in Mexico remains complex and heavy with requirements, but there are many 3PL providers that have the process down to a science,” according to Richard Armstrong, chairman of Armstrong & Associates. “This report summarizes the market opportunity and identifies the key players and the process by which to follow.” 

Armstrong divides the Mexican trucking market into intra-Mexico and cross-border import/export trucking with the U.S. Domestic trucking’s core is the Mexico City area, connecting to such major cities as Monterrey and Guadalajara. Cross-border traffic is dominated by export/import activity involving the U.S., with the busiest cross-border port being Laredo, TX.  

“Proximity to the United States, low wages, increases in manufacturing competencies, and retail investments throughout Mexico are keeping trucking in Mexico afloat,” the report states. “While trucking in Mexico is bobbing relative to the United States due to currency fluctuations, the complexities of intra-Mexico and cross-border trucking with the United States requires expertise.” 

The report points out that major retailers, such as Walmart, are expanding into Mexico to gain for shorter lead times as “ocean transit cannot react as quickly to consumer demands as truckload transit,” and that “bodes well” for 3PLs operating in the country.

The report may be ordered from Armstrong & Associates.