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Home FEATURED

Creating Capacity to Address Challenges in Cross-Border Transportation

T21 Media by T21 Media
5 September, 2024
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In the face of the nearshoring boom (migration of production lines to consumer centers), in which companies begin to expand and relocate their operations in Mexico, the challenges that the country faces in establishing companies, such as infrastructure and security, are often highlighted, but what happens with cross-border transportation to the main destination, which is the United States?

In the webinar Capacity and Security: The Keys to Transforming Border Trade organized by VAX Solutions, Eduardo Chaim, its Commercial Director, highlighted that Mexico has been characterized as a country with highly specialized industry , in addition to the fact that exports to the United States have increased considerably, which makes it relevant to strengthen cross-border transport.

In context, Mexico’s trade balance with North America showed a surplus in 2023 , with 85.7% in exports (508,193 million dollars (mdd)) and 44.9% in imports (268,561 mdd), in addition to Mexico displacing China as the United States’ first trading partner in 2023 , with a surplus in the trade balance in favor of Mexico of 235 billion dollars.

“It is a great challenge for transport chains, as it represents an imbalance in transport services to create this capacity to meet the demand for transport, because the increase in volume will not be equal to the installed cargo capacity,” said Chaim.

On the other hand, the specialist indicated that the lack of tractor-trailer operators is another important challenge within land transportation, especially because in Mexico there is a shortage of approximately 60 thousand drivers .

In this regard, he explained that measures must be taken to provide operators with the conditions necessary to make this work more attractive.

“We know that a fleet of 60,000 trucks with 60,000 operators will not suddenly appear to balance demand. This is why it is important to generate capacity and solid relationships between suppliers,” he said.

Chaim pointed out that VAX developed corridors to strengthen and offer strategic business for all carriers through a contract infrastructure, to link one company with another to generate greater capacity and meet demand.

In addition, in order to protect operators, the company has a security team that develops safe transit protocols.

“I believe that the most important thing as a pillar of the transport chain is the life of the operators, the safety and integrity of the fifth wheel drivers, tractor-trailers, and small units. We must make our users and clients understand that we must respect transit times to maintain the integrity of our people,” said Eduardo Chaim.

He also indicated that in order to have capacity, they have a solid network of suppliers , with specialized transportation in different industries.

On the other hand, Sergio Nava, Director of Logistics Operations at VAX, added that understanding the client and their needs generates a value proposition in the business, since “it is not only about filling loads and deliveries here, these are your routes, but really looking for that grain of rice of what is it that hurts you, what? What is it that is currently causing conflict in your operation? “

To foster dialogue on the opportunities presented by  nearshoring , Grupo T21 will organize the  Transportation and Logistics Meeting (ETYL)  on October 9 and 10 in Nuevo León. With the central theme “Maximizing logistics opportunities with  nearshoring ,” this event will bring together important industry leaders in Mexico. For more information, you can check all the details by clicking  here .

Comment and follow us on X: @jenna_GH_ / @GrupoT21

Tags: CARGO TRANSPORTATIONCROSS-BORDER CARGOCROSS-BORDER MARKETCROSS-BORDER TRANSPORTLOGISTICAL CHALLENGESVAX SOLUTIONS

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