Mexico trade hits a record $96.3 billion in September as Laredo retakes the top gateway spot

Trade with Mexico hit a record in September, and the freight that moves it keeps funneling through Laredo. FreightWaves reported on Nov. 6, using WorldCity and USTradeNumbers data, that two-way U.S.-Mexico trade rose 34.2% from a year earlier to $96.34 billion. That kept Mexico the country's largest trading partner, ahead of Canada at $64.78 billion and China at $41.1 billion.

Most of the growth was on the import side. FreightWaves put U.S. imports from Mexico at $62.24 billion for September, up 39.6%, while exports to Mexico rose 25.4% to $34.09 billion. Total U.S. international trade rose 21.8% to $561.82 billion in the same report.

Laredo takes back the top spot

Laredo, Texas, regained first place among U.S. trade gateways at $38.87 billion in two-way trade, up 31.2%, according to the same FreightWaves report. Mexico accounted for about 98% of that total, or $38.05 billion. Chicago O'Hare slipped to second at $36.08 billion, down 17.9%.

Other crossings grew faster. FreightWaves listed Ysleta-Zaragoza at El Paso at $16.23 billion, up 53.5%, and Santa Teresa, New Mexico, at $7.54 billion, up nearly 248.5%. Eagle Pass and Pharr each grew about 6% to 7%, and Otay Mesa rose 5.9%.

The Bureau of Economic Analysis and the Census Bureau, in their Nov. 4 release, showed Mexico with the largest U.S. goods deficit of any country in September, at $28.7 billion. Their basis differs from the WorldCity figures, so the totals will not match exactly. The same release put the overall U.S. goods and services deficit at $105.0 billion, down $0.7 billion from August.

What it means for carriers

Northbound volume is the story. A 39.6% jump in imports from Mexico means more loads crossing at a handful of Texas and New Mexico gateways, and more demand for carriers authorized to haul on both sides of the border.

Capacity on that side may not keep up. Knight-Swift CEO Adam Miller told FreightWaves at the WEX OTR Summit that U.S. enforcement of cabotage rules has "really ramp[ed] up," and that he has seen drivers lose visas over alleged violations with prior carriers. He said he expects Mexican truck capacity to tighten as enforcement increases. The report on that interview ran Nov. 1.

Miller also described tariffs as a major unknown and said customers are shifting plans as conditions change. Record trade suggests that shift is currently running toward Mexico.

What shippers and brokers should watch

Border-lane pricing and appointment availability are the first things to check, since record volume and tighter driver supply tend to push in the same direction. Brokers covering Laredo and El Paso should confirm that their carriers' drivers and authorities are in good standing, because a visa problem can pull a truck off a load with little notice.

Shippers should also watch whether the growth holds. One month, even a record, is not a trend, and the next Census release is scheduled for Dec. 8.