Cross-Border Road Transport Market Analysis

Cross-Border Road Transport Market Analysis

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Based on transportation mode, the market is divided into freight transport and passenger transport. In 2023, freight transport accounted for a market share of over 75%. This mode of transport mode includes full truckload (FTL), less than truckload (LTL), and specialized freight. It also involves transporting entire trucks filled with large. FTL is preferred for high-volume and high-value goods, due to its efficiency and reduced risk of damage. LTL shipping combines smaller shipments from multiple customers into one truck and is considered cost-effective for businesses that do not require a full truck for their goods.
 

Further, specialized freight mode involves transporting perishable goods that require specific temperature settings, such as food, pharmaceuticals, and chemicals. As a result, FTL remains the dominant mode in cross-border road transport, due to its affordability and efficiency for bulk goods. For instance, in May 2023, the US Department of Transportation reported an increase in FTL shipments across the U.S.-Mexico border, driven by growing industrial production in Mexico and demand for just-in-time delivery in the U.S. automotive sector. Further, FTL is preferred for time-sensitive shipments or when a shipper needs dedicated capacity. This highlights the importance of FTL in supporting cross-border manufacturing supply chains.
 

Based on cargo type, the cross-border road transport market is categorized into perishable goods, non-perishable goods, and specialized cargo. Non-perishable goods are expected to hold over USD 280.8 billion by 2032, owing to the growing demand for a diverse range of products such as electronics, machinery, clothing, and various raw materials. In addition, robust infrastructure, and extensive road networks enhance the efficiency and reliability of cross-border transport for non-perishable goods. Moreover, manufacturing and retail businesses rely on timely deliveries of non-perishable components and finished products, keeping inventory levels low and maximizing efficiency.


Further, embracing digital solutions for tracking, documentation, and customs clearance can streamline processes and reduce costs associated with non-perishable goods transport. For instance, in March 2024, The World Customs Organization (WCO) launched a new initiative to promote the harmonization of digital customs data standards. This initiative aims to facilitate faster clearance processes for non-perishable goods at borders. Its primary objective is to establish common standards for digital customs data across participating countries. This initiative aligns with broader global efforts towards trade facilitation and the digital transformation of customs processes.
 

North America has a significant share of the cross-border road transport market with around 32% of the revenue share in 2023. The market in the region is a crucial component of the region's logistics and trade infrastructure. The market is characterized by significant trade activities between the U.S., Canada, and Mexico, facilitated by agreements such as the US-Mexico-Canada Agreement (USMCA). These agreements have streamlined trade between the three nations, reducing tariffs and simplifying customs procedures, thus leading to a rise in cross-border freight movement.
 

In addition, the growing e-commerce sector in the region is driving demand for efficient last-mile delivery solutions, relying on cross-border road transport for regional distribution. For instance, in February 2024, FedEx announced the expansion of its cross-border e-commerce services between the U.S. and Canada. It offers faster delivery times and streamlines customs clearance for online retailers. It provides numerous benefits such as increased sales, reduced costs, improved efficiency, and enhanced customer satisfaction, which fosters the growth of e-commerce market in the region.