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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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December 14, 2021, Mexico Transportation Market Update

January 2022 is bringing new requirements and reform to cross-border Mexico shipping, which we all need to be prepared for.

We recognize there are many large-scale changes occurring in Mexico directly impacting transportation. Schneider is committed to staying tightly aligned on the changes that are occurring and to communicating them to you as we are made aware.

Should you have any questions regarding these changes, please don’t hesitate to contact your local Schneider representative, who will be happy to answer your questions.

Thank you for being a loyal Schneider customer.

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

Schneider is ready. Are you?

The Carta Porte requirements require preparation and testing. We have been working with our shippers to proactively determine any additional data needs prior to implementation and test the new process. We have seen varying degrees of preparedness from our customers and if you have not started working on meeting these requirements with your Schneider representative, please reach out to them as soon as possible.

Get ready:

Mexico tax reform changes will also be effective on January 1st, 2022

Mexico will be implementing Tax Reforms in 2022 which include a prospective change to the Value Added Tax (VAT or IVA for its initials in Spanish) Law. These changes will be effective on January 1, 2022.

What these reforms will result in is the possible increase in costs associated to VAT that will now need to be accredited to the movement in Mexican territory of imported freight (southbound into Mexico), that were not previously considered.

For customers shipping intermodal freight southbound:

  • The information we are receiving from our rail partners indicates that intermodal southbound flows will most likely suffer an increase to account for this change in the tax law.

For customers shipping southbound truckload freight:

  • If you are currently contracting the transfer carrier service separately, you will be taxed for your truckload southbound freight. The Mexico authorities will consider it a domestic move (say originates in Nuevo Laredo and ends in the interior of Mexico).
  • If you work with Schneider to arrange your door-to-door moves, we may be able to mitigate these fees. Please contact your Schneider representative to discuss your options if you have not yet spoken.

COVID-19 vaccination requirements for cross-border truck drivers coming by January 22nd, 2022

The U.S. administration is requiring all truck drivers who cross U.S. borders to be fully vaccinated for COVID-19 by January 22, 2022.

The rules pertain to non-U.S, nationals. American citizens and permanent residents may still enter the US regardless of their vaccination status, but face additional testing hurdles because officials believe they more easily contract and spread COVID-19 and in order to encourage them to get a shot.

Are your carriers prepared?

Know that when you work with Schneider, we are prepared. Based on a recent survey of our carriers, 95%+ of our transfer Mexico carrier base is confirmed to be fully vaccinated at the time of this writing. We will keep your cross-border freight moving.

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.

The U.S. Thanksgiving holiday is reflected in the recent dip of outbound tender volumes and is anticipated to quickly readjust as in past years.

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:

Graph of import export and over the road values

Plan ahead for your cross-border capacity needs

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.

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 restrictions

All but three of Mexico’s 32 states have been cleared by the federal government to open for business and social affairs without restrictions under the nation’s COVID-19 traffic light monitoring system. Cases remain relatively flat.

As weather turns cooler, states in the North of Mexico have reported a slight increase in cases resulting in 5 of them returning to Yellow status. Many states have now announced the start of booster shots to the elderly population.

Map showing Mexico COVID-19 cases have decreased
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Published December 2021

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