Motive’s recently released transportation and logistics data shows 2024 to be a record year for Mexican imports to the United States.
In fact, record truck border crossings and ground import volumes cement Mexico as No. 1 U.S. importer amid declining Chinese imports, according to Motive.
“675K trucks crossed the U.S. Mexico border, bringing $32.5 billion in goods with it in May of this year, representing a 7.2% increase year-over-year despite the volatility of shipping during that period. These numbers represent all-time records for Mexico-to-U.S. imports and underscore the new normal for U.S. supply chains: Mexico is now firmly established as the country’s largest importer. The country has imported more goods than Canada by truck for the last 22 months consecutively. With Chinese imports down 19.9% year-over-year since May 2022, it’s clearer than ever that U.S. companies are adopting nearshoring from Mexico as a primary resourcing strategy,” according to Motive.
Key takeaways:
- Artificial intelligence (AI) demand could fuel more imports from Mexico.
- The trucking market will hit net-positive growth by November, ending nearly 2 consecutive years of losses.
- Retailers are preparing for strong Q4 sales, with grocery and superstore warehouse visits surpassing 2021 levels, and department stores, apparel, and electronics jumping over 30% year-over-year.
- Mexico imports are at an all-time high; 675,000 trucks brought a total of $32.5 billion in goods from Mexico to the United States in May.
- Entrants and exits to the trucking market continue to move in a positive direction.
- Retailers anticipate stronger and earlier-than-usual 2024 holiday shopping.
- Factors driving the trend toward nearshoring include attempts by U.S. companies to diversify supply chains, more protectionist trade policies, and even the types of products being imported. The commodities that have seen the greatest year-over-year growth include computer-related machinery (up 20% year-over-year) and electrical machinery (up 8%). As U.S. companies continue to invest in building AI technology, demand for these materials will likely continue to grow, fueling higher Mexican imports in these areas in the next few years.
- Following a small contraction in June, entrants and exits to the trucking market moved in a positive direction in July. New carrier registrations rose 4.5% since June and 3.6% year over year.
- However, not every indicator in July was positive. Carriers continue to describe the current market as being in a trough and unemployment in trucking rose 0.2% compared to June and 1.9% year-over-year.
“August paints an overall positive economic picture, with retailers anticipating strong holiday sales and earlier-than-usual consumer holiday shopping. We’re seeing significant changes in global supply chains as nearshoring transforms U.S. trade patterns and cements Mexico’s position as the top importer. Despite rises in unemployment and continued market challenges, the trucking market’s strong summer continues as its path toward positive growth becomes clearer,” says Motive.
