If you ship into or within Mexico, you may have to add some extra time to your promised-by dates.
That's because there are close to 50,000 drivers needed to fill open positions throughout Mexico per Enrique Gonzalez Munoz, president of the Mexico City-based National Chamber of Freight Transport (CANACAR), reports Noi Mahoney of FreightWaves.com.
According to the article, drivers of 18-wheelers, tractor-trailers, delivery trucks, freight trucks, and tanker trucks hauled more than $671 billion in goods across the US-Mexico border in 2018. Drivers have been needed on both sides of the border and especially for driving within Mexico. New training programs are being offered throughout the country.
Then COVID hit. According to Investopia, "in 2020, Mexico fell to being the second-largest merchandise trading partner with the U.S., behind China. Amid the COVID-19 pandemic, 2020 trade between the countries resulted in a substantial decrease in total bilateral merchandise trade to $538.1 billion, down from $614.5 billion in 2019, when Mexico was the largest merchandise trading partner with the U.S."
Yet, more than $500 billion is still a lot of trading and hauling!
According to the Congressional Research Service, merchandise exports in 2020 were $212.7 billion. Merchandise imports in 2019 (latest figure) were $359 billion. The trade balance with Mexico went from a surplus of $1.7 billion in 1993 to a deficit of $112.7 billion in 2020.
The main exports to Mexico are petroleum and coal products, motor vehicle parts, semiconductors and other electronic parts, computer equipment, and basic chemicals. The main imports from Mexico are motor vehicles, motor vehicle parts, computer equipment, audio and video equipment, and electrical equipment.
If your company has warehouses or facilities within Mexico, check out our IntraMX CCK module. It supports Priority Overnight, Express Saver, and Standard Overnight shipping within Mexico.
Has your company been impacted by the driver shortage in Mexico? Interested in hearing more about how Varsity Logistics can help you? Reach out today!