Mexico Transportation

Market Update

October 21, 2022

Transportation Market Update

This Market Review Update is intended to provide you with high-level macroeconomic and general industry data that
may be relevant to your business. This update should not be used for any other purpose. This update does not state or
imply anything about Schneider’s performance, results, operations, strategy, projections or plans. The purpose of this
update is to relay statistical and relevant facts from various industry professionals. This update does not predict or
forecast any economic or industry outcome or results. This update has been prepared on the basis of information made
available by third parties; Schneider has not attempted to independently verify any such third-party information.

For the latest information and updates, visit Schneider’s Trending Topics page.
 Celebrating 30 years of serving you!

2022 marks 30 years that Schneider has been servicing the Mexico cross-border market. Our decades of
cross-border freight experience mean your cargo moves throughout North America without delay. We have
the assets, facilities, associates and third-party relationships in place to deliver safely, securely and on-
time. Throughout the year you will see more content celebrating the last 30 years!

Dry Van Truckload Dedicated Intermodal Brokerage Bulk Logistics

Update from INEGI: Mexico Northbound flows continue to significantly outpace
Southbound flows
Import/Export Over the Road Values – Port of Laredo

2022 YTD Gap: 42.3% The National Institute of Statistics and

Geography in Mexico, known as INEGI, recently
reported import/export values for the month of
June reaching a gap of 41.1%.

This puts the full year gap at 42.1%, up from

35.5% for that same period in 2021.

To put that in perspective – for every southbound

shipment into Mexico, there are close to double
that amount flowing northbound to the U.S.

Source: INEGI; Updated August 2022

2x as many trucks are leaving Mexico than are entering – driving a capacity
imbalance, the Northbound/Southbound gap.

EXIT
MEXICO

ENTER
MEXICO
Northbound Capacity Solution:
New Intermodal Capacity Options
from Silao, Mexico
Schneider is now offering Northbound
Intermodal service from the FXE Silao, Mexico
ramp. This is a great capacity option for those
shipping from:
• The Bajio area
• Queretaro
• Guadalajara

This is in addition to our regular services out of

the KCSM ramps in:
• Monterrey
• San Luis Potosi
• Toluca
Schneider offers multiple capacity options to move your
freight across the U.S.-Mexico border and beyond

In addition to Truckload and Intermodal

cross-border transportation solutions, Intermodal
Schneider offers solutions through
Dedicated, Bulk, Brokerage, Logistics Dedicated
and Warehousing.
Bulk: OTR and Intermodal
We can help you achieve your capacity
needs through our 30 years of cross-border Van Truckload

transportation experience and expertise.

Logistics/Warehousing

Learn More
Talk to an Expert

7 Proprietary and confidential

In the news: Mexico replaces Canada as number 1 U.S. trade partner

In August, Mexico replaced Canada as the No. 1 U.S.

trade partner for the first time since January. Canada
ranked second, and China third.

The top three U.S. imports from Mexico during August

were computers, passenger vehicles and motor vehicle
parts.

The U.S.-Mexico port of entry in Laredo, Texas, rose

to No. 2 (from No. 3) among the nation’s 450 airports,
seaports and border crossings in August.

Commercial truck crossings in Laredo increased 12.8% Read Article

to 246,019 vehicles in August. For the year to date, truck
crossings through Laredo have risen 8.9% to 2.7 million.
Source: freightwaves.com; October 2022
In the News: Ocean freight orders are signaling a big drop in consumer demand

Port Congestion Levels in the U.S.

• There has been a 20% drop in ocean freight orders.

• The declines include machinery, household products,

industrial products and apparel.

• Ocean carriers are canceling as much as 50% of

sailings to rebalance vessel capacity to demand.

• Freight prices on one key route from Asia to the West Coast are now down more than 80% from last year.

• The reason is a combination of too much inventory coupled with a lack of clarity on consumer demand.

Read the article Source: cnbc.com; 10/4/22

In the news: Chinese companies are also nearshoring to Mexico

Chinese and other Asian manufacturers have been slowly

nearshoring U.S. goods manufacturing to Mexico for years,
in an effort to sidestep U.S. tariffs and shorten supply chains.

Chinese investment in Mexico jumped from $154 million in

2016 to $271 million the following year, when Donald Trump
took office threatening a trade war. The ongoing tariffs have
only increased investment.

Although the cost of materials and labor is generally higher in Mexico than in China, the gap has been
shrinking over the years, with wages in China growing at a more rapid clip. Trump’s tariffs—which his
successor, Joe Biden, has kept in place—along with a pandemic-induced surge in freight rates have also
eroded the economic advantage of manufacturing in China.

Read Article Source: bloomberg.com; September 2022

In the news: Mexico nearing decision to end daylight savings time

After years of discussion, Mexico is close to finalizing legislation that would end
daylight saving time (DST) across most of the country, ending the practice of turning
the clocks forward and back by one hour each spring and fall. The bill was recently
approved by Mexico’s Chamber of Deputies and is expected to be voted on in the
nation’s Senate shortly. It would go into effect in spring 2023.

Regardless of the vote, ending DST would not occur in Mexican states along the U.S.
border, including Baja California, Chihuahua, Coahuila, Nuevo Leon and Tamaulipas,
which typically keep the same time zone as the bordering U.S. states.

DST in the U.S. will not take effect until November 2023. Therefore, some point out
that opening, closing and deadline times may be affected and that both U.S. and
Mexico cross-border operations will need to be flexible with staffing and scheduling.

Read Article Source: freightwaves.com; October 2022

Laredo outbound tender volumes competitive with 2020-2021

Compared to the Outbound

Tender Volume Index levels
during this time in the previous
2022 years, current OTVI is 23%
2019-2020 higher than 2021, 6% higher than
2020-2021 2020, and 95% higher than
2018-2019 2019.

Outbound Tender Rejects are about -56%

lower than they were at the same time last
year.
Sources: FreightWaves SONAR; Updated 10/17/22
 Cross borders as if there are none
Learn more about Schneider’s reliable,
expert Mexico/U.S. cross-border freight shipping solutions.
Struggling to get the capacity you need? Lacking supply chain visibility? Looking
to improve your freight procurement process?

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challenges beyond U.S. borders.

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Not sure how you could benefit? Read this case study to learn how one manufacturer gained reliable,
consistent cross-border capacity.