Market Size of US Cross-Border Road Freight Transport Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Cross-Border Road Freight Transport Market Analysis
The size of the United States cross-border road freight transport market is USD 1.02 billion in the current year and is anticipated to register a CAGR of over 3.5% during the forecast period.
- Public-health measures to control the COVID-19 pandemic reduced economic activity. US GDP declined by 1.2% in the first quarter of 2020, and unemployment rose to 14.7%. With no clear timeline for the lockdown and other restrictions to end, freight companies were responding to the immediate crisis by preserving cash, creating safe workspaces, adjusting the size of the workforce to meet the demand, and providing humanitarian aid. During the crisis, demand has been volatile, spiking or plummeting by mode and customer profile.
- The United States' cross-border road freight transport market is driven by the growing technological advancement in the trucking industry and the trade agreements among the North American countries, while road congestions and high emissions drag down the market growth. Canada and Mexico are major trading partners of the US and these are the most important countries when it comes to cross-border freight transport from the US.
- U.S. relations with Mexico are strong and vital, and Mexico remains one of the United States' closest and most valued partners. The countries share a 2,000-mile border with 47 active land ports of entry. Trade between Mexico and the United States reached the historical figure of USD 779.3 billion in 2022, a growth of 17% compared to the amount registered in 2021, according to the United States Census Bureau.
- This figure was supported by an annual growth of 18.3% in merchandise imports from Mexico, which totaled USD 454.9 billion. The amount represented 14% of the total imports that the United States made in 2022. Exports from the United States to Mexico increased 17.3% compared to 2021, to register an amount of USD 324.3 billion. With this value of total trade, Mexico remained the second largest trading partner of the United States, only surpassed by Canada, which totaled USD 793.8 billion.
- The United States and Canada share the world's longest international border, 5,525 miles with 120 land ports of entry, and their bilateral relationship is one of the closest and most extensive. Nearly USD 2.6 billion a day in goods and services trade crosses between them every day. The deficit with Canada increased USD 31.6 billion to USD 81.6 billion in 2022. Exports increased USD 48.4 billion to USD 356.1 billion and imports increased USD 79.9 billion to USD 437.7 billion.
- In March 2022, the total transborder freight of US was USD 141.9 billion, moved by all modes of transportation, up 23.8% compared to March 2021. Freight between the U.S. and Canada totaled USD 72.9 billion. Freight between the U.S. and Mexico totaled USD 69.0 billion. Trucks moved USD 85.5 billion of freight, up 15.7% compared to March 2021.
US Cross-Border Road Freight Transport Industry Segmentation
Cross-border road freight transport means the transport of freight in the course of an industry, trade, or business, to or from the Republic, crossing or intending to cross its borders into the territory of another state.
The United States Cross-border Road Freight Transport Market is segmented by Service (Full Truck Load, Less-than-Truckload, and Courier, Express, Parcel), and by End-user (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing and Forestry, Construction, Distributive Trade, Healthcare and Pharmaceutical, and Other End Users). The report offers market sizes and forecasts for all the above segments in value (USD billion).
| By Service | |
| Full Truck Load (FTL) | |
| Less-than Truckload (LTL) | |
| Courier, Express, and Parcel (CEP) |
| By End-user | |
| Manufacturing and Automotive | |
| Oil and Gas, Mining, and Quarrying | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Distributive Trade (Wholesale and Retail Segments - FMCG included) | |
| Other End Users (Telecommunications and Pharmaceuticals) |
US Cross-Border Road Freight Transport Market Size Summary
The United States cross-border road freight transport market is experiencing a steady growth trajectory, driven by technological advancements in the trucking industry and robust trade agreements with neighboring countries, particularly Canada and Mexico. These countries are pivotal to the U.S. cross-border freight operations, facilitated by a vast network of land ports and a strong bilateral trade relationship. The market's expansion is supported by the United States-Mexico-Canada Agreement (USMCA), which has replaced NAFTA and continues to bolster trade by reducing tariffs and eliminating non-tariff barriers. Despite these positive factors, the market faces challenges such as road congestion and high emissions, which could potentially hinder growth.
The industry is characterized by a fragmented landscape with numerous domestic and international players like UPS, DB Schenker, FedEx, C.H. Robinson, and XPO Logistics actively competing. However, a significant challenge remains the shortage of truck drivers, exacerbated by an aging workforce and lifestyle disadvantages associated with long-haul trucking. This shortage impacts the supply chain, leading to delays and increased costs. Companies are responding by raising driver pay and expanding services through mergers and acquisitions to enhance operational efficiencies and maintain a competitive edge. The market's future growth will depend on addressing these labor challenges while leveraging technological innovations and strategic partnerships.
US Cross-Border Road Freight Transport Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Technological Trends (Autonomous Trucks, Electric and Alternative Fueled Vehicles, etc.)
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1.3 Government Regulations and Initiatives
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1.4 Brief on Key Transport Corridors
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1.5 Insights on Customs Clearance Procedures at Border Exit Points
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1.6 Review and Commentary on Driver Shortage and Fuel Costs
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1.7 Insights on Prices of Freight Transport Expenditures
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1.8 Insights on Sales of Different Types of Trucks and Used Trucks, and Truck Manufacturers in the United States
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1.9 Qualitative and Quantitative Insights on Domestic Trucking in the United States
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1.10 Overview - Cross-border Refrigerated Trucking and Key Commodity Groups Transported
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1.11 Review and Commentary on the US Border States (Infrastructure, Inland Ports, Trade Lanes, etc.)
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1.12 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Full Truck Load (FTL)
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2.1.2 Less-than Truckload (LTL)
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2.1.3 Courier, Express, and Parcel (CEP)
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2.2 By End-user
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2.2.1 Manufacturing and Automotive
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2.2.2 Oil and Gas, Mining, and Quarrying
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2.2.3 Agriculture, Fishing, and Forestry
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2.2.4 Construction
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2.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)
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2.2.6 Other End Users (Telecommunications and Pharmaceuticals)
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US Cross-Border Road Freight Transport Market Size FAQs
What is the current US Cross-Border Road Freight Transport Market size?
The US Cross-Border Road Freight Transport Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in US Cross-Border Road Freight Transport Market?
United Parcel Service (UPS), DB Schenker, FedEx, C.H.Robinson and XPO Logistics Inc. are the major companies operating in the US Cross-Border Road Freight Transport Market.
