A significant share of northbound produce shipments from Mexico is coming through the Laredo port district of Texas, a new USDA report reveals.
Called the “U.S.-Mexico Agricultural Trade Logistics Review,” the report indicated that, excluding avocados, about 38% of Mexico’s fresh fruit and vegetable exports flow through Laredo crossings, 30% through Nogales and 17% through San Diego.
Much like fresh produce southbound from the U.S., Mexico’s exports of fresh fruits and vegetables are shipped almost exclusively by truck, the report said.
In value terms, the U.S. held a 64% market share of all agricultural and related exports to Mexico in 2021. During the same year, 81% of Mexico’s total agricultural exports went to the U.S.
While U.S. exports of fresh produce to Mexico often flow through the Western land ports such as Nogales, Ariz., and San Diego, the report said northbound shipments are more heavily oriented towards eastern commercial crossings in Texas.
“Some exceptions exist for products whose production zones in Mexico are in closer proximity to the Nogales/San Diego commercial crossings such as table grapes and watermelon,” the report said. “However, existing infrastructure, inspection capacity, and more direct access to the largest U.S. markets dictate more eastbound trade flows.”
In fact, U.S. imports of avocados from Mexico, totaling more than 1 million metric tons in 2021, are largely shipped through the Laredo district in Texas, the report said.
“Fresh tomatoes represent another product that is shipped at volume through the Laredo district throughout the year (especially through the McAllen port of entry),” the report said. However, the report said there are also seasonal increases through Nogales in the first half of the year with a less-pronounced increase through San Diego mid- to late year.
The report said a notable feature of Mexican fresh fruit and vegetable trade through the Laredo district is the extent to which certain products flow through certain port of entries.
“For example, a large majority of fresh fruit and vegetables transit through the Reynosa/McAllen port of entry as opposed to the Laredo/Colombia port of entries,” the report said.
Based on the geography of production zones for several fresh products in Mexico, the report said the Nogales port of entry is also a seasonally important conduit particularly of table grapes, watermelon and several vegetable varieties.
In 2021 and 2022, northbound agricultural trade from Mexico to the U.S. has been characterized by record values due in part to the current high-price environment for food and agricultural products, the report said.
“Strong consumer demand in the U.S. continues to contribute to record volumes of food and agricultural imports,” the report said.
Another feature of cross-border trade during COVID-19 was an increasing imbalance between north and southbound freight shipped via truck, with far more freight heading northbound than southbound, the report said.
“This imbalance is not new and for several years predating COVID, food and agricultural trade via truck was more heavily northbound-oriented. However, the imbalance sharpened in 2020 and 2021. A north-south imbalance that was traditionally 3-to-1 reached as high as 8-to-1 in late 2020. Also complicating the commercial truck area of the supply chain are driver shortages on both sides of the border.”
The report said the national trucking association in Mexico (CANACAR) estimated that Mexico has a shortage of up to 50,000 truckers.