Business & Investment

Border Zone: Why does innovation stop at the Mexican border?

Borderlands Is a weekly summary of developments in the world of cross-border trucking and trade between the United States and Mexico. This week: Why does innovation stop at the Mexican border? Arkansaw’s trucking business expands to Texas. Samsara has released a fuel economy report. And VW will start exporting Taos from Mexico.

Why does innovation stop at the Mexican border?

While working at Coyote Logistics, Matt Silver said that one of the most important things he learned about trade between the United States and Mexico was the lack of a Transport Management System (TMS) capable of handling cross-border cargo. Said.

“It was like fitting a square peg into a round hole,” said Silver, co-founder and CEO of Forager at FreightTech.

Silver started working at Coyote Logistics about 10 years ago. His father, Jeff Silver, was founded in 2006 and sold to UPS in 2015. Silver said he learned a lot from Coyote and helped establish the Mexican division.

“I learned a lot about the unique headaches and challenges faced by North American shippers,” Silver said. “That’s why I started Forager because it addresses some of these challenges with new and innovative technology.”

Forager Is a Chicago-based cross-border logistics technology platform founded in 2018. Launched Forager scoutThe company’s cross-border booking and pricing platform in October 2019 to address technology gaps.

“We have built TMS, SCOUT to manage cross-border cargo and place markets on it,” Silver said.

Mexico is the second largest commodity trading partner in the United States, with a total of $ 538.1 billion (two-way) trading in 2020. US Census Bureau.. China was number one with $ 558.1 billion and Canada was number three with $ 525.8 billion.

In 2020, more than 6.3 million commercial trucks crossed the US-Mexico border, including about 3 million that passed the border crossing in Laredo, Texas. US Department of Transportation Statistics..

Outbound bids in Laredo, Texas (OTVI.LRD) Increased slightly weekly and moderately increased year-on-year. (Graph: FreightWavesSONAR. Click for more information on FreightWavesSONAR. here.).

One of the cross-border transportation challenges that he noticed while in Coyote was that innovation often stopped at the US-Mexico border, Mr. Silver said.

Since 2015, venture capital firms have invested approximately $ 28 billion in logistics start-ups. report McKinsey & Company

Venture capitalist investment and logistics start-up investment could amount to $ 160 billion in the last three years alone, Silver said.

“Most of our technology investments are made north of the US border. All the money invested is Convoy And Loadsmart, Transfix, But Uber Freight, There are so many people chasing the domestic market and there is little investment in cross-border markets, “Silver said. “There isn’t much cross-border investment yet, as many people don’t understand it.”

Mr Silver said the turmoil and complexity of cross-border Mexican cargo lies in the number of various entities involved.

For domestic shipping, there is usually one carrier, pick-up location, and final destination. Standard US-Mexico cross-border shipments include pickup facilities, Mexican carriers, border carriers, Mexican customs brokers, US customs brokers, US carriers, and end-destination facilities. included.

“It’s very difficult for different parties in different countries and different systems to organize their thoughts on something, not to mention organizing all the shipping information,” Silver said. Stated. “We are here focusing on the complexity of cross-border cargo, from a technical point of view, as a clear leader in this area at this point.”

Forager recently launched across borders Road board For carriers to access packages between the United States, Mexico and Canada.

When Forager’s roadboard was launched in mid-February, more than 400 active carriers were interacting in the market in the first quarter. Currently, there are approximately 2,900 carriers registered or certified in the system.

“Carriers didn’t have a roadboard to look for cross-border cargo. They didn’t have a place like self-service,” says Silver. “This helps carriers bidding on cargo. They book their packages themselves. It makes their business more efficient. They also have control. They have the ability to choose whatever load they want or don’t want. “

Arkansaw’s trucking business expands to Texas

Shipping company Woodfield Co., Ltd. We have a regional operation center and a dispatch office in Tex Americas Center In Texarkana, Texas.

Based in Camden, Arkansas, Woodfield will lease 1,500 square feet of space for offices and 10 spaces for trailer trucks over a total of three acres.

Woodfield’s facility at the TexAmericas Center will be the location of the company’s regional transportation department and its fleet management office on the road.

Woodfield offers heavy / professional services for long-distance dry van transportation and flatbed truck transportation on areas and roads. The company serves the Midwest, the East Coast, and the Southern United States.

Samsara Releases Fuel Economy Benchmark Report

Samsara Has been released Fuel Economy Benchmark ReportAccording to the company, fleet operators can help understand vehicle efficiency through fuel consumption / consumption indicators.

“Fuel Efficiency Benchmark Report… reflects Samsara’s commitment to increasing the safety, efficiency and sustainability of businesses that drive the global economy. This report shows vehicle performance across fleets’ key efficiency indicators. You can set informed goals that help you evaluate and promote both environmental and financial benefits, “said Karine Gidali, Senior Product Marketing Manager at Samsara. blog..

The company said the fuel efficiency benchmark report can help the fleet:

— Set and track fuel efficiency goals by comparing vehicle fuel usage with anonymous benchmark data aggregated from Samsara’s base of over 20,000 customers.

-Reduce fuel costs by understanding the make and model of each vehicle, and the average mileage per gallon per year, and identifying those that are operating inefficiently and need to be replaced.

— Access anonymized insights from thousands of vehicles.

Samsara customers can access the Fuel Efficiency Benchmark Report on the Samsara dashboard by clicking Benchmark and using the Fuel and Energy icon.

Based in San Francisco, Samsung is a cloud-based fleet management and connectivity solution provider.

VW begins exporting Mexican Taos to the US

Volkswagen de Mexico On April 16th, we began shipping the first unit of a new Taos crossover vehicle from our factory in Puebla, Mexico, to the United States.

According to the company, vehicles are traveling to various northbound destinations through the port of Lazaro Cardenas in Mexico on the Pacific coast.

“With the launch of the first unit of the new Taos for the US market, Volkswagen de Mexico has achieved another goal in time, despite the manufacturing challenges of the coronavirus pandemic.” Said Susanne Lehmann, VW’s director of production in North America. The American region said in a statement.

Taos will be available in the United States in June. VW de México also exports Jetta and Tiguan vehicles to the United States through Lázaro Cárdenas.

Borderlands is sponsored by Forager. For more information on Forager products, see:

Click here to see more Freight Waves articles by Noi Mahoney.

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Border Zone: Why does innovation stop at the Mexican border? Border Zone: Why does innovation stop at the Mexican border?

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