Breaking

Mexico Border Capacity Crunch to Persist Through 2027

Cross-border trucking capacity between the U.S. and Mexico will remain tight through 2027 despite declining freight demand, according to logistics provider TRAFFIX. Driver shortages, regulatory restrictions, and elevated operating costs are constraining truck availability. Higher interest rates and stricter lending standards are discouraging new trucking ventures, reversing pandemic-era expansion patterns. Financing costs now reach 8% to 9%, making fleet expansion difficult for carriers and owner-operators alike. Alex Fuller, vice president of commercial intelligence at TRAFFIX, noted tighter regulations and equipment costs differ markedly from pandemic conditions when government stimulus and cheap financing spurred capacity growth. TRAFFIX's October North American Cross-Border Index registered 57 for Canada and 54 for Mexico, both down one point from September. Readings above 50 signal tight conditions. Although shipment volumes remain subdued, available capacity has shown minimal improvement, limiting shipper options when contracted carriers cannot cover loads.