US/Mex Trucking: Peak Season Delays Inevitable

When we updated the USMCA information in our blog, most still couldn’t foresee the extent to which delays caused by congestion, capacity, and rates would continue to disrupt the logistics industry.

But BIG Logistics is different, and the unique position of our El Paso office gives us a broader perspective than our competitors. We warned early on that rates would rise, and capacity would diminish as transit times grew longer at the border. In a perfect confluence of conditions, all facets of logistics are experiencing significant disruption making a seasoned industry professional your best bet to battle back against higher costs and slower trips.

While it isn’t a cure-all for the conditions we’re experiencing, having a professional team in your corner that specializes in freight moving across the U.S. Mexico border. Another bonus for using BIG Logistics is the contract rates we use that lock in prices to avoid market tribulations, though it’s not a complete safety net. There’s always a graduated rate increase option that can hit our rates, but that’s a last move in the case of increases. We still avoid spot rate increases that impact other carriers who are counting on open capacity to drop freight prices.

Though times are tumultuous, it isn’t necessarily a bad thing happening as an increase in demand for automotive and manufacturing goods indicates the return of a strong economy in a post-pandemic world. The skyrocketing demand comes in part as retailers start restocking shelves and preparing for the holiday shopping season, so slight delays are a growing pain as the industry adjusts. 

Cross-border trucking isn’t alone in seeing disruption and delays as air, ocean, and even intermodal cargo is facing rate hikes, capacity, and equipment issues in record-breaking ways. Containers from Asia are seeing spot rates of $4,000 – $5,000 depending on whether they’re headed to the U.S. West Coast or East Coast, respectively. Intermodal costs from California are running up huge excess cargo charges up to $3500 as traffic is up more than 20%. For the first time in history, it was cheaper to truck cargo out of California than to put a container on a rail.