Multimodalism Is A Growing, Environmentally Efficient, And efficient Logistic Solution
Driver shortage (surprise!) has been a key challenge affecting supply chains both domestic and cross border traffic in México, among others like highway security, increasing operating costs for over the road shipments (fuel price increases are transferred to the shippers more frequently as the Fuel Surcharge system is not common practice in México´s trucking space, thus creating rate uncertainties), congested highways, etc. This leaves shippers in a very unstable situation, to say the least, and has caused companies to “buy” capacity at a premium price that sometimes is not fully used. Trans-national companies that have pledged to lower their environmental footprint are frustrated due to the lack of significant initiatives from the trucking sector in México.
The intermodal market is also struggling due to the lack of container availability, derived from broken supply chains that are facing unprecedented challenges (COVID, war, the great resignation, etc.), price increases, and intermittent track interruptions from protestors at some key Mexican pacific coast ports (Manzanillo and Lázaro Cárdenas).
This crisis is a great opportunity for rail transload and cross-dock terminals in México, increasing the use of rail as a transport mode for long distances and relying on the last and first mile for a more predictable, environmentally friendly, consistent, and efficient truck (drayage) market. Another important feature for multimodal Terminals is warehouse capacity availability, as many well-established sites are now holding larger quantities of inventory during these uncertain times where the model has changed from “Just in Time” to “Just in Case” stock strategy.
The certainty that the federal administration needs to provide to investors will be a key factor for this positive trend to continue, as investment barriers such as large capital commitments, financing, permits, and the rule of law (among others), will only deter both foreign and domestic direct investment in projects if trust is not gained with true, concrete, and solid actions.
References
Free trade agreement statistics source: www.promexico.gob.mx.
GDP Chart, Secretaría de Hacienda y Crédito Público economy report 2012.
2019 DGAF basic statistics of federal freight services suppliers.
