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May 20, 2025   |  

UNDERSTANDING THE FLOW OF GOODS BETWEEN THE US AND MEXICO

 

Introduction

The intricate web of logistics connecting the United States and Mexico forms a crucial artery for North American trade. Every day, a massive volume of goods traverses this border, underpinning the deep economic ties between the two nations. In January 2025 alone, the total value of freight moving between the US and Mexico reached $69.6 billion, marking a significant 7.9% increase compared to the previous year. This flow, however, faces a complex landscape of challenges, including regulatory hurdles, infrastructure limitations, and the ever-present need for enhanced security.

Understanding this relationship isn't just an academic exercise—it's essential for thriving in today's interconnected global economy. The US-Mexico border region serves as a vital artery for international trade, essential for linking markets and fueling economic growth across multiple sectors, including the automotive industry.  

 

The Economic Landscape: A Foundation for Understanding

The sheer scale of US-Mexico trade highlights the profound economic interdependence between the two countries. In 2024, the total value of goods traded reached approximately $839.9 billion . US exports to Mexico amounted to $334.0 billion, a 3.5% increase from the previous year, while imports from Mexico totaled $505.9 billion, showing a more substantial growth of 6.4%. This resulted in a US goods trade deficit of $171.8 billion with Mexico in 2024. Mexico has solidified its position as the United States' top trading partner, surpassing both China and Canada in terms of total trade volume in 2024.

This signifies a fundamental shift in North American trade dynamics, emphasizing the critical role of efficient cross-border logistics. This momentum is likely to accelerate due to nearshoring and regionalized manufacturing strategies. The trade relationship between the US and Mexico has shown sustained growth in recent years . Bilateral trade has exceeded $614 billion in recent years, highlighting the dynamic nature of this border.  

 

Key Industries & Trade Flows:

Several key industries drive the significant trade volumes between the US and Mexico. The top commodities transported by truck in January 2025 include computers and parts, valued at $13.0 billion; electrical machinery, with a value of $11.4 billion; and vehicles and parts, amounting to $6.7 billion. Throughout 2024, imports from Mexico have largely dominated cross-border freight, with computer-related truck freight experiencing a remarkable 54% surge in December 2024. These leading commodity categories clearly indicate the strong and deeply integrated manufacturing ties, particularly in the electronics and automotive sectors, that characterize this trade relationship.

Mexico remained the United States' top trade partner for manufactured goods in 2024, accounting for 16% of total imports. Most of Mexico's export gains came from key sectors: computer and electronic products, transportation equipment, and electrical equipment, appliances, and components, representing about 85% of Mexico's total U.S. exports. Industrial zones in cities like Monterrey, Saltillo, and Guanajuato are thriving, driving higher volumes and greater frequency of cross-border freight in both directions.  

 

Infrastructure & Transportation Modes: The Physical Backbone

The movement of this vast quantity of goods relies on a well-established infrastructure and various transportation modes. America's land borders with Canada and Mexico are economically vital conduits for North American supply chains, with nearly $3.5 billion in daily cross-border freight shipments . In 2024, US freight flows with Canada and Mexico equaled $1.6 trillion dollars, a 1.8% increase over 2023 .  

 

Transportation Modes:

Trucking is the dominant mode for US-Mexico freight, accounting for 72.5% of the total value in 2024, with a total value of $609.0 billion . This underscores the paramount importance of efficient border crossings for this mode of transport. Rail transport plays a significant secondary role, handling 11.7% of the value in 2024, amounting to $98.3 billion . While air freight represents a smaller portion at 2.6% of the total value in 2024, or $21.5 billion, it experienced substantial growth of 48.3% in January 2025, indicating a rising demand for speed in certain sectors. In 2023, 90% of Mexico's exports to the U.S. were transported by truck, while 7% were by air, 2% by rail, and 1% by sea. Surface modes of transportation (truck + rail) together accounted for 77.1% of all freight flows by dollar value in 2024 .  

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Border Crossings:

Key border crossings facilitate this movement, with Laredo, TX, standing out as the top truck port, handling $23.2 billion in freight in January 2025. In 2024, Laredo managed half of the total truck volume on the Southern border, processing over 3 million incoming trucks from Mexico, a 3.1% increase from 2023. With over $320 billion in goods passing through in 2023, its pivotal role in international trade cannot be overstated. In 2023, it marked a historic milestone for Port Laredo, as it surpassed longtime leaders Chicago O'Hare and the Port of Los Angeles to become the top U.S. port of entry by total trade value. Other significant truck ports include El Paso and Otay Mesa. In January 2025, El Paso handled $7.7 billion in truck freight, while Otay Mesa processed $4.9 billion. The Otay Mesa Port of Entry is the largest commercial crossing in the California/Mexico border.

In 2019, the Otay Mesa and Tecate ports of entry processed a combined $65.86 billion in total bilateral trade value via trucks. These key ports are vital to both the Texas and the nation's economy. The border crossings in the Laredo District accounted for 56 percent of daily truck volume and 40 percent of all rail traffic between Texas and Mexico in 2016. The border crossings in the El Paso District accounted for 20 percent of daily truck volume and 17 percent of all rail traffic between Texas and Mexico in 2016. The concentration of trade through these key corridors underscores their critical importance to the overall efficiency of US-Mexico logistics.


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The views and opinions expressed by Roy-Trans Global Logistics Inc., an independent agent, do not necessarily represent the views of Landstar and its affiliated companies.