Mexico's $500B in U.S. Trade Faces Rising Highjacking Risks

Mexico's booming as American companies ditch China, though at the same time organized crime has been cashing in. The Hustle broke down some of the key stats when it comes to all the crime that has been creeping up as of late within the Mexico-US freight industry.

The Big Picture

• Mexico surpassed China in US imports, hitting nearly $500B in 2023
• Foreign investment hit a record $20B in Q1 2024
• But Mexico's now the #1 hotspot for cargo truck hijacking worldwide

Nearshoring Wins

• Truck crossings from Mexico to US up 30% since 2019
• Major players like Walmart, Amazon, and Samsung setting up shop

The Dark Side: Highway Robbery

• 7.8k-21k truck hijackings annually (50/day at the high end)
• 150 drivers murdered in 2023
• 90% of hijackings involve driver kidnapping

"The fortunate ones get to live, they are let go somewhere," says Beto Lopez, ANTAC trucking chamber Vice Chairman.

Who's Behind It?

• Not the big cartels, but specialized criminal groups
• Weak law enforcement response in many areas

Impact on Development

• Southern Mexico missing out on investment due to security concerns
• Tesla chose safer northern Mexico for new factory

"Given Mexico's truck hijacking epidemic, it is a hard sell to entice companies to invest further south," warns Ryan Berg, CSIS Latin America expert.

And, of course, trucking companies are worried about running routes through the country: "Everybody [is] worried about theft," Matt Silver, CEO of Cargado, explained.

Cargado Secures $6.8M Seed for Cross-Border Freight Tech

With U.S. - Mexico trade surpassing $200 billion in Q1 2024, Cargado is seizing the opportunity to help brokers and shippers deal with the nitty-gritty of cross-border logistics.

FreightCaviarAdriana Pulley

What's Next?

• President-elect Sheinbaum promises crackdown
• Companies are rethinking logistics to avoid hotspots

The nearshoring boom's potential hangs in the balance as Mexico grapples with this critical security challenge. While Mexico is trying to continue its growth with the freight industry, something has to be done with the crime rate if more progress is to be made.

Source: The Hustle