U.S. cross-border truck trade with Mexico by value hit an all-time high in May, reflecting the steadily increasing trade between the NAFTA members and growing consumption by the Mexican middle class.
Truck trade by value jumped 17.1 percent year-over-year to $29.1 billion, as shipments from Mexico rose 16.1 percent, and U.S. exports expanded 18.4 percent, according to a BB&T research note. U.S. truck imports by value are up 14.5 percent in the first five months of the year, while U.S. truck export shipments are up 16.9 percent.
Trade among the North American Free Trade Agreement partners has steadily risen this year, with total trade rising in value by 8.3 percent year-over-year in May. U.S.-Mexico surface trade in May totaled $35.6 billion, a 14.9 percent gain from the same period a year ago.
The growth comes as trucking providers strengthen their U.S-Mexico connections. UPS, for instance, in April launched an expedited ground freight service linking the two countries. The service “should allow for improved transit times over traditional [less-than-truckload carriers],” wrote BB&T analyst Kevin Sterling in a research note. The U.S.-Mexico truck trade growth is also expected to benefit XPO Logistics, because the company’s subsidiary, Express-1, gets about a quarter of its revenue from shipments over the border, he wrote.