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Traxion: freight trucking tends to more large companies

Freight trucking services in Mexico increasingly tend to operate with large companies, Traxion noted.

These large companies (with fleets of more than 100 units) registered a compound annual growth rate of their fleet of 9.6% in Mexico between 2013 and 2019.

At the same time, freight trucking services had an increase of 7.1%, according to figures from the Ministry of Communications and Transportation (SCT).

However, the Mexican trucking industry continues to be highly fragmented.

According to Traxion, buyers of transportation services have become increasingly sophisticated, requiring scale, technology, reliability and professionalism from their trucking service providers.

Thus, a trend towards scale growth has been created with larger freight trucking companies.

Freight trucking

Logistics services have gained relevance and penetration in the Mexican economy.

In particular, during 2020 and derived from the health contingency caused by Covid-19, the electronic commerce channel showed unprecedented growth, since a significant portion of the population was forced to use electronic commerce services due to the sanitary measures of lockdown that began in March 2020.

According to a study by the Mexican Association for Online Sales, the e-commerce market in Mexico totaled 316,000 million pesos, and represented 8.5% of retail sales, compared to 2.9% in 2017.

Similarly, studies show a growth of this channel of 81% in 2020.

Through its subsidiaries, Traxion was “very well positioned,” in its own words, to capture this growth, particularly in last-mile services, distribution, cargo, import, and warehouse management.

In general, the company believes that the trucking and logistics industries in Mexico offer a great opportunity for growth and profitability.

Road transport plays a key role in the Mexican economy, representing 56% of total cargo tons and 95.6% of total people transported by land during 2019, according to figures from the SCT.

 

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