Changes in Mexico affect cross-border shipping

Shippers may need new tactics to control rates and minimize cargo theft in Mexico, say Transplace Mexico executives.

By DC Velocity Staff

If you're shipping freight to or from Mexico, last year's playbook may not do you much good. Recent changes south of the border mean some of the old rules for managing rates and protecting cargo from theft may no longer apply, say the experts at third-party logistics specialist Transplace.

Speaking at a recent symposium, Transplace Mexico's managing directors, Troy Ryley and Jose Minarro, brought shippers up to speed on what's happening in Mexico. Here are some of the observations they shared:

• Motor carriers are struggling with an equipment imbalance in the U.S.-Mexico trade. Although cross-border freight volumes are up overall, southbound moves lag behind northbound loadings, due in part to punitive tariffs Mexico slapped on U.S. goods in response to a NAFTA violation. As a result, trailers for northbound traffic are in short supply.
• The days of quoting point-to-point, all-in cross-border truck rates may be nearing an end, Ryley said. Now that the Mexican government has lifted subsidies on diesel fuel, some Mexican carriers are for the first time assessing fuel surcharges.
• Some Mexican regional carriers are now collaborating to manage costs and control pricing. Diversifying your carrier base, using multiple modes, and investigating methods like transloading may help insulate your operation against sharp price hikes, Ryley said.
• Cargo-theft patterns have changed now that the "Zetas" drug cartel dominates highway crime. In the past, organized rings targeted high-value goods like electronics and pharmaceuticals. But the Zetas will steal a trailer and figure out what's in it afterward, Minarro said. "If they can sell it, you won't see your freight again. If they can't, they'll just abandon the trailer." What can shippers do to protect their cargo? Tracking technology (in the trailer, not the tractor), pre-scheduled driver-dispatcher calls, and security escorts can all help reduce the risk of theft.

More details about the presentation (as well as others from the 2010 Transplace Shipper Symposium) can be found at the 2010 Transplace Shipper Symposium website.

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