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Mexico Market Transportation Update

Schneider publishes this regular transportation market update to keep you informed of freight market conditions, supply and demand influencers, and disruptions that may impact your supply chain. 

This report is developed by leveraging data and analytics from multiple transportation industry resources.

This report focuses on the Mexico Transportation Market. View the full Transportation Market Update here.

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November 19, 2021, Mexico Transportation Market Update

Laredo Outbound Tender Volume and Reject Index’s declining in second half of the year – possibly a reflection of the capacity imbalance?

During the first half of the year Laredo’s outbound tender volume — a measure of shipper requests for truckload capacity — as well as tender rejects — have both been consistently higher in 2021 than 2020, though are lower right now vs. the same time last year, when they spiked during Peak Season. This may be an indication of the growing northbound/southbound imbalance. 

Graph of import export and over the road values

Plan ahead for your cross-border capacity needs

Fiscal year 2020 the gap closed at 45.5%. While there has been some relief in 2021, the gap continues on an upward trend compared to 2019. Gap is currently at 36.3%.

Northbound:

Mexican Northbound exports grew by 7% compared to the first half of 2019. While certain sectors (such as auto) have not fully recovered, others (retail & home improvement) continue to see significant strength.

Northbound demand will continue to be strong. With continued supply chain disruptions and the new Bill of Lading requirements coming, plan now for your capacity needs coming over the next few months.

Southbound:

Mexican imports grew by 5% compared to the first half of 2019. While positive, it is not enough to close the gap.

As the market continues to evolve, we are here to help. Contact a logistics expert today and read the full transportation market update report here:

Mexico’s new Bill of Lading deadline: January 1st, 2022.

Schneider is ready. Are you?

The Mexican government has extended the new Bill of Lading deadline to December 1, 2021, after which the requirement will become effective on January 1st, 2022 and penalties will be effective. .

Complemento Carta Porte al CFDI / Bill of Lading Complement to a CFDI --  There is an important new requirement to shipping your cross-border freight, which is currently in effect and will be required by Mexico law by January 1, 2022.

The Mexican government has recently issued a new fiscal control that will directly impact all commercial transportation moves in Mexico. As a means to have greater control over the transportation sector, the Mexican government through the Secretariat of Finance (Hacienda) has issued a new requirement that will tie all cargo moves digitally to a formal digital invoice, referred to in Mexico as a CFDI, by obligating the carrier to add certain information to this electronic document in order to create a digital version of a Bill of Lading. The Bill of Lading will now be a “complement” of the digital invoice that was issued for the shipment by the Mexican carrier.

What impacts will this have over Mexico/U.S. cross-border shippers?

The reform will have an impact on practically all shippers and the different players across the transportation supply chain. Mexican shippers will now be required to share additional information with their Mexican carrier base in order to adequately document a shipment. This will include piece count, weight, merchandise to be moved, the final destination of said merchandise, and in the case of International Transportation, the Pedimento associated with that move; among other things.

What modes of transportation does this requirement apply to?

  • The requirement applies to all modes of transportation crossing over the Mexico and U.S. border – truckload, intermodal, and bulk.

When will the bill of lading complement the CFDI requirement come into effect?

  • The requirement originally was to become mandatory on October 1, 2021. The deadline has now been pushed back to December 1, 2021 without penalties, and mandatory on January 1, 2022 with penalties.

What do I need to prepare for this new requirement?

  • The first thing you need to do is to make sure that you are working with carriers that have procedures, policies, controls, and correct tax compliance in place that guarantee that these types of changes are considered and complied with.
    • Your Schneider Customer Service Representative will be working with you to proactively determine any additional data needs you will need to send prior to implementation. Due to the additional data needed to schedule a pick-up, it will be important to provide the information early and accurately. Working under a pre-dispatch scenario or using a consolidated Pedimento for your outbound needs will also drive efficiencies.

    In the news: Mexico Manufacturing Sector Continues to Contract

    The IHS Markit Mexico Manufacturing PMI rose to 49.3 in October 2021, from 48.6 in the previous month, reflecting a softer contraction in the country's manufacturing sector.

    Output decreased for the 20th month in a row, amid reports of a lack of raw material availability, business closures and subdued sales, while new orders continued to fall due to shutdowns, weak demand and shortages of goods for sale.  

    Though, business sentiment hit a 42-month high in October, reflecting expectations that the pandemic will recede and raw material availability will improve. 

    graph showing manufacturing sector contraction
    mexico to united stated shipping map

    Struggling to get the capacity you need?

    Schneider’s supply chain experts are here to help you solve your supply chain challenges beyond U.S. borders.

    Let these experts work for you and find opportunities in your supply chain. Complete this brief questionnaire to begin your free consultation.

    In the news: Most Mexico states have fully relaxed COVID-19 restrictions

    Mexico’s federal government has fully relaxed restrictions on social and business activities in all but 3 of the nation’s 32 states—the most states operating at green traffic light status since the government instituted its pandemic traffic light monitoring system in June 2020. 

    Map showing Mexico COVID-19 cases have decreased
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