5th Bi-Annual Border to Border Transportation ConferenceMcAllen, TexasNovember 18-20, 2014

US-Mexico Cross-Border Freight Traffic Trends

Geza Pesti, Ph.D., P.E. and Rafael Aldrete-Sanchez, Ph.D.Center for International Intelligent Transportation Research

Texas A&M Transportation Institute

Objectives• Update trends and statistics in

freight activities across the US-Mexico border

• Identify unexpected changes.

ApproachAnalyze cross-border freight by

• Mode of transport• Ports and destination states• Commodities• Average Wait Times of

Commercial Vehicles at POEs

2013

Surface Trade between U.S. and Mexico

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

100000000000

200000000000

300000000000

400000000000

500000000000

19% 18%11% 13%

23%

-5%-1%

0%

12%7%

13%5% 2%

-14%

28%

15%10%

1%

Early 2000s Recession

2007 GlobalFinancial Crisis

Surface Trade between U.S. and Mexico

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

50

100

150

200

250

Imports Exports

Billi

ons

USD

Imports56%

Exports44%

Trade by Surface Mode20

04

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

50

100

150

200

250

IMPORT(Billions USD)

Truck Rail

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

50

100

150

200

250

EXPORT(Billions USD) Truck Rail

Truck82%

Rail16%

Other2%

Truck80%

Rail15%

Other5%

Surface Trade by US States

Texas California Michigan ArizonaIllinois

Mill

ions

USD

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

50,000

100,000

150,000

200,00020

0520

0620

0720

0820

0920

1020

1120

1220

13

2005

2006

2007

2008

2009

2010

2011

2012

2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

0.5 %

-3.5%

7.9%

8.4%22.5%

States Ranked Based on Value of Goods Traded with Mexico

Freight Flow by Commodities

Change in the freight value was evaluated based on six commodity groups:

• Group 1: Food, beverages, agricultural commodities (HS-code: 1-24)

• Group 2: Minerals, chemicals, plastic, fossil fuels (HS-code: 25-40)

• Group 3: Wood, fabrics, paper products, books (HS-code: 41-71)

• Group 4: Metals, metallic materials (HS-code: 72-81)

• Group 5: Manufactured goods (HS-code: 82-96)

• Group 6: Other goods (HS-code: 97-99)

0 10 20 30 40 50 60 70

Food, beverages, agriculturalcommodities

Minerals, chemicals, plastic,fossil fuels

Wood, fabrics, paperproducts, books

Metals, metallic goods

Manufactured goods

Other goods

Laredo, TX

0 10

Nogales

2007

2008

2009

2010

2011

2012

2013

0 10 20

Otay Mesa

0 10 20 30

El Paso

0 10

Hidalgo

Export by Commodity Groups

0 10 20 30 40 50 60 70

Food, beverages, agriculturalcommodities

Minerals, chemicals, plastic,fossil fuels

Wood, fabrics, paperproducts, books

Metals, metallic goods

Manufactured goods

Other goods

Laredo, TX

0 10

Nogales

2007

2008

2009

2010

2011

2012

2013

0 10 20

Otay Mesa

0 10 20 30

El Paso

0 10

Hidalgo

Import by Commodity Groups

0 1 2 3 4 5 6

Nuclear reactors; boilers; machinery andmechanical appliances; parts thereof

Electrical machinery and equipment and partsthereof; Sound recorders and reproducers

Vehicles; other than railway or tramway rollingstock; and parts and accessories thereof

Optical; photographic; cinematographic;measuring; checking; precision; medical

instruments

Billion USD

Laredo, TX

2007200820092010201120122013

Import of Manufactured Goods

0 2 4 6 8

Mineral fuels; mineral oils and products of theirdistillation; Bituminous substances; Mineral…

Inorganic chemicals; Organic or inorganiccompounds of precious metals; of rare-earth…

Organic chemicals

Pharmaceutical products

Tanning or dyeing extracts; Tannins and theirderivatives; Dyes; pigments and other…

Essential oils and resinoids; Perfumery;cosmetic or toilet preparations

Soap; organic surface-active agents; washingpreparations; lubricating preparations;…

Albuminoidal substances; Modified starches;Glues; Enzymes

Photographic or cinematographic goods

Miscellaneous chemical products

Plastics and articles thereof

Rubber and articles thereof

Billion USDLaredo, TX

2007 2008 2009 2010 2011 2012 2013

Import of Minerals, Chemicals, …etc

SUN

MON

TUE

WED

THU

FRI

SAT

0 10 20 30 40 50 60

SUN

MON

TUE

WED

THU

FRI

SAT

0 10 20 30 40 50 60

SUN

MON

TUE

WED

THU

FRI

SAT

0 10 20 30 40 50 60

SUN

MON

TUE

WED

THU

FRI

SAT

0 10 20 30 40 50 60

SUN

MON

TUE

WED

THU

FRI

SAT

0 10 20 30 40 50 60

SUN

MON

TUE

WED

THU

FRI

SAT

0 10 20 30 40 50 60

Zaragoza World Trade Pharr

Colombia Brownsville BOTA

Average Waiting Times of Commercial VehiclesData Collection Period: May 2013 – April 2014Source: Border Crossing Information System (http://bcis.tamu.edu/)

minutes minutes minutes

minutes minutes minutes

Findings• Trade has quadrupled from 1995 to 2013.• Imports exceeded U.S. exports by 15-20 %. • Freight by trucks are 4-5 times higher than rail• Freight at Texas POEs is more than in the other

three states combined. • Manufactured goods are the highest value

commodity shipped across the border (both ways).

• Import of manufactured goods has significantly decreased in 2013.

• Import of minerals, chemicals, plastic, fossil fuels has significantly increased in 2013.

Texas California Michigan ArizonaIllinois

Mill

ions

USD

0

50,000

100,000

150,000

200,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

2005

2006

2007

2008

2009

2010

2011

2012

2013

0.5 %

-3.5%

7.9%

8.4%22.5%

Summary