Four Factors Key to Shaping Logistics Landscape in North America

Q: How does IRU help improve transportation in Mexico, and what are its main priorities in the country?

A: Mexico holds a significant position within the IRU, represented by national associations like 

the National Chamber of Cargo Transportation (CANACAR). The IRU has members from over 100 countries. This wide reach allows us to address challenges and opportunities in road transportation on a global scale, covering both freight and passenger transport.

In Mexico, we support our members on enhancing road safety, increasing cross-border trade efficiency, and promoting sustainability within the transport sector. Since the pandemic, we have seen a shift toward regionalization, with nearshoring becoming more prominent in North America. To tackle these challenges, in 2022, we established the North American Transport Forum (NATF), uniting IRU members from Mexico, the United States, and Canada. This forum provides a platform to discuss common issues like driver shortages, infrastructure development,  regulatory coordination, and sustainability practices. Though each country has specific needs, the collaboration allows us to align efforts across the region and ensure the transport sector is equipped to handle future demands while staying competitive and sustainable.

Q: How is the IRU fostering collaboration between the United States, Canada, and Mexico in road transportation? 

A: The IRU fosters collaboration in both freight and passenger transport through key associations, including the American Trucking Associations, Canadian Trucking Alliance and CANACAR, and with Mexico’s National Chamber of Passenger and Tourism Motor Transport (CANAPAT) and the American Bus Association. Cross-border freight movement is immense, especially between the United States, Mexico, and Canada, which demands coordination on infrastructure, technology, and human resources solutions.

We focus on improving border efficiency by addressing both physical and technological infrastructure. We look at bridges, roads, and border crossings to ensure smooth transport flows. Simultaneously, we support technologies that help speed up border processes and avoid unnecessary complications on customs, such as advanced inspection systems like non-intrusive X-ray and gamma scanners. 

Our goal is to identify challenges, such as delays at border crossings, and coordinate and work with government agencies on both sides of the borders to implement solutions that can streamline the entire process for all three countries. 

Q: What initiatives or technologies are IRU and its members advocating for to improve the efficiency of cross-border operations, and what are the challenges in this regard?

A: Border congestion has been a long-standing issue, driven by regulatory complexities, multiple agencies overseeing operations, and the need to modernize and improve systems. The IRU recognizes that governments need data for compliance, but the challenge lies in streamlining how this information is collected, shared, and processed in a coordinated manner.

One key solution is technology. We are advocating for  systems that can centralize and share necessary data across agencies, including those based on the cloud. This would allow real-time risk assessments based on pre-submitted information about the truck, cargo, and driver, significantly speeding up border processing. We also have worked to improve the level of automation at border crossings and have supported initiatives such as Mexico’s Customs Technological Integration Project (PITA). 

Another critical area is the use of non-intrusive inspection (NII) technologies to enable remote inspections, increasing the throughput of cargo and conveyances and augmenting the ability of customs personnel at border crossings. Customs officers could potentially conduct reviews of NII images from miles away, enhancing both security and efficiency. We have also been advocating for a North American single window system for many years. This system would allow businesses to submit data once, which would be shared across all necessary agencies in the United States, Canada, and Mexico. The goal is to reduce data information requests and redundancies by performing risk analysis by multiple agencies prior to arrival, helping minimize human resource shortages at border crossings and better utilizing the infrastructure in place.

Technology can help remove obstacles to improved agency coordination and accelerate border crossings. Significant progress has been made, including at land and  maritime ports, and we foresee such technologies playing a greater role at  land crossings. It is crucial that systems like electronic manifests are fully integrated into single windows to help improve coordination among governmental agencies. Despite having identified viable solutions, such as a single-window system for the North American region, execution has been slow in advancing such systems and hindered by constant changes in government structures and oversight in these areas. 

Lastly, there are tested and trusted systems, technologies, and harmonization conventions that have proven useful in trade and transport facilitation across the international borders. One such long-standing instrument is the UN TIR Convention, which continues to help expedite border crossings with technology, harmonized processes, and financial guarantees that provide a heightened level of security, compliance, and efficiency for international road transport.  Several countries and regions in the Americas, including Mexico, could benefit greatly from implementing TIR.  

Q: What specific measures are being discussed with the US government to prevent the misuse of the B1 visa?

A: While there are advantages to the program, we are also seeing some challenges. Some operators and companies are misusing the B1-B2 visa for illegal activities. These credentials allow for entry to pick up and drop off cargo, but they are being improperly used for domestic transportation within the United States, which constitutes cabotage.

This misuse allows these operators to undercut costs by avoiding the regulatory expenses associated with legitimate transportation, creating unfair competition in the market. We are actively collaborating with the US government to enhance enforcement of laws and regulations. It is essential not only to penalize the operators violating the rules but also to hold accountable the companies hiring them. While the B1 program has significant benefits, we need to address these issues to ensure that it operates as intended and maintains fair competition in the industry.

Q: What are some of the key obstacles transport companies face in meeting decarbonization goals? 

A: The decarbonization journey for transport companies is complex and requires high levels of trust and cooperation between the public and private sectors. IRU developed a Green Compact, which outlines key pillars aimed at sustainability. Rather than waiting until 2030 or 2035 to transition to electric, hydrogen, or other types of vehicles and fuels, we have developed solutions to encourage companies to take immediate actions to reduce their environmental impact. We also emphasize the need for more efficient logistics to minimize empty miles and improve the movement of goods. Many older vehicles, especially those operating at the border, are less efficient and contribute significantly to pollution, so fleet modernization is required at a large scale.

It is also crucial for governments to adopt a more agnostic stance regarding fuel types, rather than mandating solely electric vehicles. The infrastructure for electric charging is insufficient, and the power demand of electric fleets could overwhelm existing systems. This situation is compounded by the rising energy needs driven by technology, such as AI. To address these challenges, we need reliable access to diverse fuel options and a robust infrastructure that supports logistics operations, including rest areas and other facilities for drivers. 

Ultimately, while the industry is committed to sustainability and achieving net-zero emissions, we require certainty in fuel availability, vehicle performance, and the necessary supporting infrastructure. The current high costs of EVs also present significant hurdles for transport companies striving to meet decarbonization goals.

Q: How is the upcoming 2026 revision of the USMCA expected to affect road transport and trade operations, and what are the key areas that need to be addressed?

A: As a North American transport forum, our goal is to bring all ideas to the table and analyze the implications of the various chapters in the USMCA, particularly Chapter 15 and Chapter 7, which significantly impact road transport. We need to determine what aspects of the USMCA have been fulfilled and what remains to be done. The focus should be on actionable solutions rather than just discussions. A collaborative approach is essential; all three countries must engage with industry stakeholders and collect information from various sectors affected by the USMCA. This includes addressing technology, human resources, and infrastructure challenges.

Q: With only a small percentage of Mexico’s truck drivers being women, what measures is IRU promoting to encourage gender diversity in the sector? 

A: The participation of women in the transport sector is significantly lagging, with only 1.9% of truck drivers in Mexico being female. In contrast, female participation in the US truck driver population averages about 8%. The scarcity of operators and technicians, particularly in diesel and emerging technologies, underscores the need for increased human resources. Gender diversity is vital in addressing this challenge. We plan to host meetings, workshops, idealabs and webinars featuring industry leaders and NGO representatives to share insights on our initiatives to enhance women’s roles in transport. Addressing gender diversity and improving working conditions will be essential in maintaining a stable workforce.

Q: What are IRU’s priorities for the transportation and logistics industry in the Americas for the next few years?

A: The IRU has been active for 76 years, continuously analyzing trends and identifying sector needs. We recognize several ongoing challenges and the gradual establishment of solutions. One of our priorities is technology integration, as investment in modern vehicles and technology is crucial for retaining drivers. Innovations in vehicle safety, such as automatic braking and lane departure warnings, are advancing rapidly. While fully autonomous vehicles may not be feasible, technological support for drivers will continue to evolve.

Collaboration among all stakeholders is also essential. We are engaging with public sector partners, NGOs, and development banks to modernize vehicle fleets, emphasizing the importance of gender equity to ensure women have equal opportunities for economic advancement in the industry. Sustainability is another top priority. It is essential to challenge rigid policies that demand 100% emissions reductions with very tight deadlines when significant progress can be made even with a 90% reduction before we get to 100%. 

Public policy should adopt an incremental approach to implementing changes based on technological advances. We must consider practical limitations, such as electricity generation capabilities and resource availability. Overall, technology, collaboration, sustainability, and informed policy decisions will be key in shaping the transportation and logistics landscape in the Americas.

Q: What are IRU’s main goals for 2025, and how will it continue advancing the transportation and logistics industry?

A: In the short term, we will focus on the implementation of the USMCA and on fostering collaboration among the three countries involved. Regionalization and nearshoring offer vast opportunities, especially as we navigate geopolitical factors, including trade relations with the rest of the world. This is a critical area for negotiation and investment. Strengthening this collaboration will be a key objective for us over the next two years.

International Road Transport Union (IRU) promotes economic growth, prosperity, and safety through the sustainable mobility of people and goods. Founded in 1948, IRU has members and activities in over 100 countries.