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Mexico Market

Transportation
Update

October 22, 2021


Transportation Market Update

Schneider’s goal is to provide the latest market insights to help you navigate the ongoing market volatility.

Whether moving a critical load, keeping your supply chain going or long-term planning, Schneider remains committed to
safely and securely delivering your freight.

Schneider leverages data and analytics from multiple sources to provide the most up-to-date insights available
including, but not limited to, FTR, DAT, FreightWaves SONAR, Cass Information Systems, Inc., FleetOwner, FMCSA,
The New York Times, ATRI and Transport Topics. For the latest information and updates, visit Schneider’s Trending
Topics page.
Register for the November 4 virtual event
Sustained record consumer demand and market volumes
have forced shippers to look at their transportation strategy
differently. Many shippers have found dedicated transportation
to be a valuable solution to their supply chain woes in helping
to secure contracted, consistent capacity. Join us to learn:

• Why the market is predicted to continue to experience


sustained demand.
• What dedicated transportation is and when it’s a good fit for
shipper networks.
• How Schneider’s shippers, like LEGO, have been utilizing
dedicated transportation to respond to their supply chain
challenges.
• How your organization can utilize dedicated transportation
to obtain more capacity.
Register
In the news: Speeding is the top violation during CVSA Operation Safe Driver
Week

The Commercial Vehicle Safety Alliance (CVSA)


held Operation Safe Driver Week during the week of
July 11.

Speeding, which was the focus of this year’s event,


was also the top driver behavior violation among
commercial motor vehicle and passenger drivers in
the U.S., Canada and Mexico.

This is especially concerning as the U.S.


Department of Transportation reported that traffic
fatalities were up 10.5% in Q1 2021. Source: RistoArnaudov/Getty Images

Read article
Sources: ttnews.com; 10/11/21
In the news: U.S. infrastructure deal includes $3.5 billion for Canada, Mexico
land border posts

If the Infrastructure bill is approved in its current


form by Congress, $3.5 billion would be spent to
upgrade 30 ports of entry on both the Canadian
and Mexican border.

The upgrades made with the funds would speed


the crossing of both people and goods between
the two countries, while enhancing security and
building state-of-the-art energy saving structures.

Source: Freightwaves

Read article

Sources: trucker.com; 9/7/21


In the news: Mexico cargo theft increases Q1 to Q2 2021

Sensitech recently released its Q2 Mexico Cargo


Theft Report. Highlights include:

• 5% increase in Mexico cargo theft from Q1 to


Q2 2021
• 37% of cargo theft occurred in the State of
Mexico
• Food and drink is by far the most stolen type
of cargo (41%), followed by electronics(14%)
and alcohol (8%)

> Learn more about Schneider’s layered


approach to freight security and how we
protect your freight.

Source: Sensitech; October 2021


CUSTOMER ADVISORY UPDATE: Mexico new Bill of Lading requirements
deadlines pushed back. Now mandatory on January 1st, 2022

Complemento Carta Porte al CFDI / Bill of Lading Complement to a CFDI

We have been informed that after several consultation sessions with the business community and transportation
chambers, the Mexican government is extending the deadline to December 1, 2021, after which the requirement
will become mandatory on January 1st, 2022 and penalties will be effective.
Complemento Carta Porte
The Mexican government has recently issued a new fiscal control that will directly impact all commercial
transportation moves in Mexico. As a means to have greater control over the transportation sector, the Mexican
government through the Secretariat of Finance (Hacienda) has issued a new requirement that will tie all cargo
moves digitally to a formal digital invoice, referred to in Mexico as a CFDI, by obligating the carrier to add certain
information to this electronic document in order to create a digital version of a Bill of Lading. The Bill of Lading
will now be a “complement” of the digital invoice that was issued for the shipment by the Mexican carrier.

Bill of Lading Complement > Complemento Carta Porte >


CUSTOMER ADVISORY, CONT.
Schneider is ready. Are you?

The first thing you need to do is to make sure that you are working with carriers that have procedures,
policies, controls and correct tax compliance in place that guarantee that these types of changes are
considered and complied with.

Schneider Customer Service Representatives have been working with our shippers to proactively
determine any additional data needs prior to implementation. Due to the additional data needed to
schedule a pick-up, it will be important to provide the information early and accurately. Working under a
pre-dispatch scenario or using a consolidated Pedimento for your outbound needs will also drive
efficiencies.

Need help with your cross-border freight? Contact us.


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


2019-20 Laredo’s outbound tender volume — a
measure of shipper requests for
2021
truckload capacity — as well as tender
2018-19 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
2019-20 imbalance.

2021
2018-19

Sources: FreightWaves SONAR; Updated 10/182021


INEGI Q2 2021 report shows the northbound/southbound gap continues to grow
Import/Export Over the Road Values – Port of Laredo
Fiscal year 2020 the gap closed at 45.5%. While
there has been some relief in 2021, the gap
Gap: 36.3% continues on an upward trend compared to 2019.
Gap is currently at 36.3%.

Northbound:
Mexican 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.

Southbound
Mexican imports grew by 5% compared to the first half
of 2019. While positive, it is not enough to close the gap.

Source: INEGI; Updated August 2021


U.S. COVID-19 cases, hospitalizations and deaths continue to decline

Source: nytimes.com; Updated 10/18/2021


Mexico COVID-19 cases and deaths continue to decrease, likely due to
increased restrictions and vaccinations

Source: nytimes.com; Updated 10/18/2021


More than half of Mexico’s population has at least one COVID-19 vaccination

Percent of population vaccinated


(10/18/21)

Fully More than 3.75 billion people worldwide have


Vaccinated received a dose of the COVID-19 vaccine, equal to
vaccinated
about 48.9 percent of the world population.
United
66% 57%
States
Canada 79% 74%
Mexico 54% 40%

Source: nytimes.com, apnews.com, directrelief.org; Updated 10/18/2021


Most Mexico states loosening restrictions

The Mexican federal government had recently


increased COVID-19–related restrictions, but with
numbers improving, most states are back on a low to
medium risk level of alert. Learn more about each
area’s policies on this map.

While most states are open, local orders may


maintain certain restrictions for those areas.

Transportation is an essential business – we


continue operations in all geographies in accordance
with state and local orders.

Source: nytimes.com, jdsupra.com; Updated 10/18/2021


Struggling to get the capacity you need? Lacking supply chain visibility? Looking
to improve your freight procurement process?

Schneider’s supply chain experts are here to help you solve your supply chain
challenges beyond U.S. borders.

Learn from our experts where more opportunity exists in your supply chain.
Just take this quick survey for your free consultation.

Get your free consultation

Not sure how you could benefit? Read this case study to learn how one manufacturer gained reliable,
consistent cross-border capacity.
Cross borders as if there are none
Learn more about Schneider’s reliable,
expert Mexico/U.S. cross-border freight shipping solutions.

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