Outlook on Mexico Transportation Market
In Mexico, the most used transport system is the ground transportation. The roadways stretch for approximately xxkms, covering the entire country. The major concentration of roadways is in x region, surrounding the Federal District.Mexico’s Road network is the primary means of national transport as x percent of freight transportation are carried out through road networks thereby contributing xy percent to the country’s GDP
- A standard articulated vehicle should be around xx to yy metres in length and zz to yy tons of gross laden vehicle, size and dimensions are designed to be compatible with roads of Mexico
- Mexico’s limit for weight and dimension of commercial vehicles are set out in NOM-12 that applies to vehicles using federal roads.
- Higher weight limit will reflect in higher productivity and fewer vehicles on road. Higher productivity means lower costs which leads to higher profitability
Trucking Market Overview
In Mexico, the most used transport system is the ground transportation. The roadways stretch for approximately xyz kms, covering the entire country. The major concentration of roadways is in the x region, surrounding the Federal District.Mexico’s Road network is the primary means of national transport by as X percent of freight transportation are carried out through road networks thereby contributing Y percent to the country’s GDP.
- Road freight transport is the primary and dominant mode of freight transportation within Mexico as road freight accounted for x% of the GDP of 2015, whereas other modes such as rail, air and ocean represent less than X% of the GDP of the country. Hence, road freight represents an important share of the value of the services sector, and the GDP as a whole
- In 2016, the total freight transported by road was XYZ tons and XX million of tons by kilometer. The average growth rate of tons transported by road was Y percent from 1996 to 2016, which is Z percent higher than the total GDP of Mexico
- The total growth of road transport of freight measured in tons from 1996 to 2016 was XY percent while the GDP growth was Z percent for the same period during that period of time but the increase in tons on this mode was slower than any other modes . This shows that in the services sector, road freight is one of the major contributor to the country’s GDP
Trucking Supply Demand Scenario
The trucking capacity in Mexico is XX as the cross border trade between the US and Mexico Y. Hence, shippers face XY in positioning equipment for both domestic and cross border transportation, especially for xy foot trailers
- Currently trucking capacity is XX in Mexico due to YY in US-Mexico trade with more trucks are in demand for northbound shipments of x,y,z products.
- The central region has a capacity utilization rate of X percent as majority of the industries are located in the region. Hence, the trucking demand is higher thereby the hauling rates are comparatively higher, especially in the metropolitan regions.
- The northern Mexican region has a capacity utilization rate of Y percent due to lower availability of trucking service providers in the region and hence the shippers and service providers utilize the available capacity to the maximum
- The capacity utilization rates are XY in the western and southern regions are Z percent, mainly due to XX demand and Y industrial activities in the region as compared to central and northern regions
- As cross-border trade grows, finding and positioning equipment is becoming a challenge for some shippers in Mexico especially for xy-foot trailers.
- Though shipment volumes haven’t grown yet, XX capacity has had a YY effect on rates.