North American Supply Chains are Mastering Cross-Border Logistics

Despite ongoing uncertainty in North American trade relations, Mexico has consolidated its role as the United States’ top trading partner, underscoring the growing interdependence of cross-border supply chains amid tariff tensions and impending USMCA renegotiations. Yet, this leadership also comes with significant logistical challenges, including persistent congestion at key border crossings, uneven infrastructure capacity, and regulatory gaps that strain efficiency and resilience across the region.

Cross-Border Trade Under Pressure

Mexico’s exports to the United States rose 6.5% year-over-year in the first seven months of 2025, reaching US$309.7 billion, according to the US Census Bureau. Automobiles, freight vehicles, auto parts, computers, wiring harnesses, and medical devices continued to drive growth, reinforcing Mexico’s position in high-value manufacturing and logistics integration, MBN reports.

In contrast, Canada’s exports to the United States fell 4.4%, and China’s plunged 18.9%, reflecting a structural reorientation of US trade toward nearshoring partners. In July alone, Mexico shipped US$45.37 billion worth of goods northward, an 8.2% annual increase that helped offset fluctuations earlier in the year. US exports to Mexico also climbed modestly by 1% to US$28.99 billion, highlighting the deep, two-way nature of supply chain interdependence.

Mexico now accounts for 15.3% of total US trade, 13% ahead of Canada and nearly 8% above China, though bilateral deficits remain substantial. The US trade deficit with Mexico widened 17.7% to US$112.6 billion through July, driven largely by automotive and electronics imports.

Bottlenecks at the Border

Even as trade volumes grow, the physical limits of border infrastructure remain one of the greatest threats to supply chain fluidity. Data from the US Department of Transportation (DOT) reveals that over 6.3 million loaded truck containers crossed the US-Mexico border between January and August 2025. Laredo, Texas, handled nearly half, 2.95 million containers, confirming its status as North America’s busiest land port. Otay Mesa (815,510) and Hidalgo (606,668) followed as critical gateways linking California and Texas with Mexico’s manufacturing heartlands.

“It is essential to have contingency plans. When bottlenecks arise at border crossings, we need reliable alternatives to keep cargo moving. Infrastructure is crucial, but the solution goes beyond building more bridges, it is about creating resilient, trustworthy logistics systems that can address challenges such as security and efficiency. Several industry programs already help ease congestion and streamline cross-border operations. Initiatives like CTPAT in the United States, its Canadian counterpart PIP, and Mexico’s Authorized Economic Operator (OEA) program enable companies to use fast lanes and expedite crossings, significantly reducing waiting times,” shares Alfonso Ortiz, Crossborder Director, Rhenus Logistics.

Ultimately, mitigating risk requires collaboration with trusted logistics partners certified under programs like CTPAT, ensuring safer, faster, and more reliable trade flows across North America.

Yet August data pointed to temporary slowdowns: Laredo’s truck volumes fell slightly from 429,410 in July to 421,810 in August, and Otay Mesa from 124,785 to 121,692. These month-on-month dips underscore the fragile balance between capacity and demand, where even minor disruptions, weather, inspections, or policy shifts, can ripple through regional supply chains.

Meanwhile, data from Mexico’s National Customs Agency (ANAM) shows a 2.4% drop in road exports to the United States during the same period, with total customs operations down 4.2% year-over-year. Six border customs, Nuevo Laredo, Tijuana, Ciudad Juarez, Reynosa, Nogales, and Colombia, handled 80.5% of all transactions, underscoring both their dominance and their vulnerability to congestion.

“We need to make greater progress in technology, customs processes, and addressing the bottlenecks we have faced throughout the transportation process. In our sector, the key priority is improving the flow of goods across all customs points. While modernization has begun, we still need to move further toward a more advanced and efficient future,” says Rómulo Mejía, Delegate of Nuevo Leon, CANACAR.

Infrastructure Expansion and Modernization

“Of the 50 bridges connecting Mexico and the US, only 20 to 22 handle cargo, and just one, the World Trade Bridge in Nuevo Laredo, moves half of all cross-border trade. Globally, it ranks as the seventh-largest port, even surpassing Long Beach. Yet, trade flow depends on much more than building bridges. It involves a complex ecosystem centered on risk management, security, insurance, data integration, and coordination between two different regulatory systems. Despite growing trade volumes, no new bridge has been built in 30 years, and cross-border infrastructure remains outdated. Projects like Otay are steps forward, but full integration, such as aligning Mexico’s Carta Porte with the US Bill of Lading, is still pending,” states Alonso Pedrero, CFO, Puerto Verde Global Trade Bridge.

Recognizing these pressures, both governments have accelerated cross-border infrastructure projects. In Tamaulipas, the World Trade Bridge Expansion Project is adding eight new toll booths and eight additional northbound lanes, along with multi-energy inspection portals designed to streamline customs clearance. A new bridge, Laredo 4/5, is also in development, planned to handle pedestrian, vehicular, and commercial traffic in a single multimodal facility that will relieve congestion at existing crossings. Together, these investments target congestion at Nuevo Laredo, a corridor that processed over US$339 billion in trade in 2024 alone.

Further west, the Otay Mesa East Port of Entry and Douglas Land Port of Entry are part of the United States’ border modernization program, funded by federal and state partnerships to boost security and efficiency. In Texas, new works at the Kika de la Garza Land Port of Entry in Pharr and the Anzalduas International Bridge expansion aim to strengthen regional connectivity and accommodate growing truck traffic from central Mexico.

Nuevo Leon, meanwhile, is pioneering a next-generation logistics model through its Green Corridors Initiative, a binational project developed with Laredo, Texas. Backed by a US$17 billion investment, the plan envisions Intelligent Freight Transportation Systems (IFTS), automated terminals, elevated freight guideways, and autonomous shuttles, designed to reduce crossing times at the Colombia Bridge from 45 to under 10 minutes. 

In Coahuila, Puerto Verde Global Trade Bridge (PVGTB), a bi-national developer based in the United States, is initiating an infrastructure project to fortify supply chains and enhance trade efficiency along the US-Mexico border through its Puerto Verde Coalition. This endeavor brings together public and private stakeholders to establish a resilient, secure, and sustainable commercial trade corridor connecting Eagle Pass, Texas, and Piedras Negras, Coahuila.

Toward Harmonized Standards and Shared Data Systems

As trade integration deepens, aligning data, inspection, and compliance systems between Mexico and the United States remains essential. Duplicated inspections, manual documentation, and fragmented databases contribute to delays and congestion. Both countries are exploring interoperable platforms for real-time cargo visibility, digital pre-clearance, and mutual recognition of trusted-trader programs.

“Digitalization and interoperability among customs systems are essential, particularly for sharing information efficiently. These elements are already part of the USMCA, yet implementation has fallen short of expectations. With the upcoming USMCA review next year, it will be crucial to stay alert and proactive in addressing these issues to ensure the agreement fulfills its potential in facilitating trade and border efficiency. While Mexico’s export momentum underscores its competitiveness, persistent chokepoints at land ports remain a strategic vulnerability. Addressing them will require coordinated action from governments, investors, and logistics operators alike,” shares Alfonso Ortiz, Crossborder Director, Rhenus Logistics.

Experts emphasize that technological synchronization, rather than additional infrastructure alone, will determine future efficiency. Harmonizing customs risk models, digitizing certificates of origin, and integrating blockchain-backed tracking systems could significantly reduce bottlenecks while reinforcing supply chain security.

“At AmCham, we closely monitored the entire process of the new Customs Law, conducting a technical analysis through our committees and submitting detailed proposals to legislators. Our goal was to ensure the reform goes beyond words on paper and truly delivers on the promise of digitalizing customs procedures to achieve real efficiency. We seek safer, more transparent, and more agile customs processes that enhance trade facilitation and competitiveness. This reform represents a significant step toward transforming cross-border operations; however, further actions are still needed to achieve full modernization of Mexico’s customs system,” says Grace Lingow, Director General, AmCham MexicoMonterrey Chapter.

Building Strategic Resilience

Ultimately, resilience in North American supply chains depends on balancing infrastructure investment with operational innovation, writes Augusto Ramos, Vice President, Grupo RAME. Physical expansions, bridges, inspection lanes, logistics parks, must be matched by digital and regulatory modernization. This includes strengthening multimodal connectivity between ports, rail, and highways; investing in secure, well-equipped rest stops and driver support infrastructure; streamlining customs processes through automation and data sharing, and incentivizing private-sector investment in logistics corridors.