Texas Wraps Border Truck Inspections After US$1.9 Billion Impact
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Texas Wraps Border Truck Inspections After US$1.9 Billion Impact

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Reneé Lerma By Reneé Lerma | Journalist & Industry Analyst - Wed, 10/18/2023 - 17:39

Texas has concluded its extensive inspections of Mexican trucks at the Mexico-US border. This decision follows a five-week period of thorough examinations that has had an economic impact exceeding US$1.9 billion and a backlog of 24,565 exports that were delayed while crossing the border at Ciudad Juarez, Chihuahua.

The comprehensive inspection was planned by state personnel under the directive of Texas Governor Greg Abbott. All cargo vehicles crossing the border at Ciudad Juarez  underwent an extensive examination, leading to a significant trade backlog. Trucks had to wait for up to 18 hours at the crossings, and about 19,000 trailers were left stranded, as previously reported by MBN. 

It is expected to take two to three weeks for the situation to normalize, even longer if new parallel inspections reintroduce delays. Pressure to cease these inspections came from both Mexico and the US, as the inspections had adverse effects on the Texan economy and commerce destined for the US East Coast. According to analysts, US business leaders played a significant role in putting a stop to the inspections.

According to Manuel Sotelo, Vice President of the Northern Region, CANACAR, stopping the inspections improved cross-border movement. Without these extensive inspections, vehicles that had to wait for 18 hours to cross the border could do so in only six hours. 

The disruptions also led many transporters to divert to other border crossings, including Nogales and Laredo. Smaller customs locations like Palomas, located 100 kilometers from Ciudad Juarez, were also used. In extreme cases, goods had to be transported by air.

The economic impact of these disruptions amounted to US$7.5 million for transport companies domiciled at the Ciudad Juarez customs. This figure does not account for the expenses and extended travel times incurred by other businesses.

As reported last week by MBN, President López Obrador mentioned during his daily press conference that Governor Abbott's attitude toward this situation has been hostile. López Obrador also accused Abbott of making decisions for political purposes.

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