Freight's New Frontier: Border Towns Drive Demand

Border towns, often viewed as mere pass-through locales, have experienced a dynamic transformation, emerging as critical linchpins in the U.S. freight landscape. As demand patterns transform, significant changes are underway:

Demand Surge: Border towns of Laredo and McAllen in Texas have witnessed their truckload demand nearly double since 2018. Their location facilitates seamless cross-border trade, supporting sectors like automotive, electronics, and agriculture. Phoenix follows suit, emerging as a burgeoning warehousing hub.

Infrastructure Investments: With increased demand, there's been notable investment in infrastructure—new roads, expanded warehousing facilities, and advanced customs checkpoints—all designed to enhance throughput and efficiency.

Diversified Supply Chain: Post-pandemic and amidst global trade tensions, companies have been keen on diversifying their supply chains to mitigate risks.

Labor Market Dynamics: With the rise in activity, border towns have seen job growth, especially in logistics, warehousing, and transportation sectors. This growth might spur socio-economic development in these regions.

Source: FreightWaves