According to FreightWaves, Uber Freight reports a tightening U.S.-Mexico trucking capacity driven by a shrinking pool of B-1 visa drivers, contributing to freight backlogs in Nuevo Laredo and pushing spot-market rates significantly above contract rates.
Driver shortage intensifies cross-border constraints
Zeid Houssami, senior vice president at Uber Freight, stated that increased enforcement targeting B-1 drivers has escalated since earlier this year, reducing the number of drivers available to move northbound freight from Mexico into the U.S. “There’s a fundamental driver shortage right now in the market, as it relates to northbound cargo,” Houssami told FreightWaves. He emphasized that the issue is not equipment scarcity — noting there are “something like nine trailers available for every driver” — but rather the inability to transport freight across the border due to insufficient qualified personnel.
The problem is compounded by an imbalance between northbound and southbound freight volumes. According to Uber Freight, the value of trade moving through Port Laredo increased 19.36% year over year in May, while produce exports through Laredo rose 8% during the second quarter. This sustained demand collides with declining carrier participation: Federal Motor Carrier Safety Administration data cited by Uber Freight shows active Mexican-domiciled southern border carriers declined 6.3% between Dec. 26 and June 26.
SONAR data reveals segmented capacity stress
FreightWaves SONAR data indicates domestic truckload capacity originating in Laredo has loosened recently, even as cross-border B-1 driver availability remains constrained. The Laredo tender rejection rate fell from 12.24% on July 24 to 6.93% on Aug. 24, approaching balanced market conditions. However, the STRI.LRD index stood at 6.93% as of Aug. 24 — up 2.1% year over year — suggesting the bottleneck is concentrated specifically in the cross-border segment required to move freight from Mexico into the U.S.
Houssami attributed the decline in active carriers to stricter cabotage enforcement and new English-language proficiency requirements. Carriers also report that B-1 visa renewals have become more difficult, and some drivers are reluctant to cross into the U.S. due to increased scrutiny of prior operations.
Transloading emerges as structural alternative
In its Aug. 13 cross-border market update, Uber Freight described B-1 capacity as a “structural” constraint, stating the existing driver pool can no longer absorb market growth. To mitigate delays, the company promotes transloading in Laredo: Mexican drivers deliver freight to the border, where it is transferred into another trailer and hauled north by a U.S. driver. This model taps into a larger U.S. driver pool and decouples export movements from northbound B-1 availability.
While transloading costs can be roughly comparable to direct B-1 service depending on the lane, adoption has been slower than expected. Houssami noted that additional handling increases exposure to cargo damage and theft — the primary risk barrier. For higher-value shipments, however, some shippers opt for transloading when the working-capital cost of stranded freight outweighs handling concerns. “For those shippers, speed is more important than cost,” he said.
Nearshoring slows amid regulatory uncertainty
Beyond driver shortages, Uber Freight identifies broader trade policy uncertainties affecting investment decisions. These include changing tariff policies, potential rules-of-origin revisions, and ambiguity around the future of the USMCA. Although freight volumes remain steady across North America, Houssami confirmed a slowdown in nearshoring efforts: “We’ve definitely seen a slowdown with some of the nearshoring efforts that we saw over the last five years.” Several Uber Freight customers have indicated they are pausing manufacturing expansions in Mexico until trade rule clarity improves.
Houssami expects the B-1 capacity challenge to persist — particularly if demand stays strong and U.S. visa requirements remain stringent. “It’s probably going to get worse before it gets better,” he said. For shippers, Uber Freight recommends improving volume forecasts, supplementing contract carriers with spot-market capacity when needed, and evaluating transloading as a strategic option.
Source: FreightWaves
Compiled from international media by the SCI.AI editorial team.
