Inbond Intermodal Service to Mexico - Sponsored Whitepaper

SolutIon BrIef: InBond Intermodal ServIce to mexIco

Over the past 15 years since NAFTA liberalized trade between the United States and Mexico, over the road (OTR) trucking has become the most popular—and most challenging—method of moving raw materials into Mexico. Several factors contribute to the difficulties United States companies face when delivering their goods via truck into Mexico, including congestion at border crossing points, and treacherous road conditions.

Through the first eight months of 2008, there were more than 2 million border crossings by truck into Mexico through Texas alone.1 The volume of trucks crossing the United States/Mexico border, combined with increased security measures implemented by the Mexican and United States governments following 9/11, have resulted in costly delays at border crossing points. The congestion at the border has become so pronounced that the average 53-foot trailer will be delayed two to three hours crossing the border into Mexico.2

Beyond the border the challenges continue as truck drivers and their shipments face treacherous road conditions. Mexico’s government has struggled to keep pace with growth of its manufacturing sector and has not invested sufficiently in its infrastructure to support the increased volume of trucks on its roads. Only 50% of Mexico’s roads are paved, and among them, only 1.8% of paved roads are expressways.3 Mexican roads also differ greatly from those in the United States, featuring tighter curves, narrow tunnels and bridges— all of which are troublesome for truckers to navigate.4 In addition to poor road conditions, free roaming livestock poses a major road hazard as most farms do not feature fences. Annually, it is estimated that 40% off all traffic accidents in Mexico involve livestock.5 Other factors, including theft and the drug smuggling trade, have had a substantial impact on many U.S. companies utilizing OTR as their primary shipping method to points within Mexico. Even Mexico’s customs officials acknowledge that haulers are more vulnerable to theft and influence from criminal organizations within their borders.6

These challenges pose an expensive problem for chemical exporters. Fortunately, a better shipping solution exists: Inbond intermodal service.