MEXICO ROAD FREIGHT TRANSPORT MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

MEXICO ROAD FREIGHT TRANSPORT MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mexican road freight transport market is estimated to register a CAGR of 6.56% during the forecasted period of 2019-2024. In Mexico, the logistics network consists of 117 seaports, 393,471 kilometers of roads, 27,000 kilometers of railway lines, 76 airports, 46 customs points, and 66 intermodal terminals. The government has a positive outlook towards investment in the logistics sector as the development of Transistmic Corridor is considered one of the main infrastructure projects of the current administration since it includes not only the construction of a train but also the installation of 10 industrial parks and a gas pipeline.

Key Highlights

• Warehousing sector is expected to see more activity in the country. Mexican shipper and transportation providers are scrambling to expand their warehousing and distribution center footprints, as reflected by a near doubling of industrial space leased over the last four years that contributed to a market characterized in 2018 by low vacancy rates and high rental costs.

Key Market TrendsStrong Exports Volumes with United States

Over the past five years, the exports of Mexico to US have increased steadily. In 2017, the total import from the United States was worth USD 239,826 million. While in 2018, the total exports were valued at USD 260,659 million. In August 2019, the Mexican global exports registered a growth of 2.2%, as compared to the same month in 2018. According to the information from the National Institute of Statistics and Geography (INEGI), the value of exports of goods in the eighth month of 2019 was USD 40.43 billion, which was made up of USD 38,486 million worth of non-oil exports and USD 1,944 million of oil companies exports.

With this, in the month of August, total exports showed an annual growth of 2.2%, which was a net result of a variation of 4.6% in non-oil exports and a 29.1% drop in oil companies. Within non-oil exports, those directed to the United States advanced at an annual rate of 4.1% and those channeled to the rest of the world did so at 6.8%.

In-use Tractor Trailer Fleet Increased in Recent Years

According to data from government sources, as of end of 2018, there are a total of 496,057 registered drive units in Mexico, which also includes 326,128 tractor units. Similarly, there are 486,335 registered drag units which includes 482,595 units of semi-trailers and 3,740 units of trailers. This results in a ratio of semi-trailers per highway tractor as 1.48.

The registered vehicle population which is based on license plates implies the total number of tractor units in existence but the actual number of units that are actively in-use differs from the total registered units.

More than 30% of the registered trucks are added during the past ten years. Out of the total drive units of 496,057 units, more than 160,000 units were added between 2009 to 2018. As significant number of trailers and tractor units were added in the past four to five years, there is an increase in the active in-use fleet.

Competitive Landscape

Mexican road freight market houses many larger companies that have greater access to capital to buy new trucks, communication equipment, and managerial sources, charge higher rates and do not contend with the same level of competition as smaller operators.

Larger firms provide services based on long-term contracts. They manage the majority of the NAFTA transborder market and the most profitable routes, possess a good reputation and quality of service. Trailers are relatively scarce. Shortcomings on hauls to central and southern Mexico exist.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Alianza Trayecto
Grupo Traxion
Autotransportes de Carga Tresguerras
Transportes Castores de Baja California
Transportes Marva
Fletes Mexico
Grupo TUM
Transportes Monroy Schiavon (TMS)
Grupo Nor y Caribe
Transportes de Carga FEMA SA de CV
Transportes Orta SA de CV
Landstar System Inc.
Ryder System Inc.
DB Schenker
C. H. Robinson

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