Tougher cabotage enforcement could disrupt cross-border driver availability and add capacity pressures to supply chains already facing tariff uncertainty, according to Knight Swift CEO Adam Miller. (Photo: Jim Allen/FreightWaves)
Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands Mexico: Cabotage enforcements threatening cross-border trucking; Nuevo León slashes Colombia Bridge toll fees 50% to boost cross-border trucking; and Walmart plans $400M distribution center near San Antonio, creating 425 jobs.
JACKSONVILLE, Fla. �� Knight-Swift Transportation CEO Adam Miller said stepped-up enforcement of U.S. cabotage restrictions is creating new challenges for Mexican truck drivers and could further tighten cross-border trucking capacity.
Speaking in an interview with FreightWaves on Tuesday at the second annual WEX OTR Summit in Jacksonville, Miller said U.S. authorities have intensified scrutiny of Mexican drivers operating across the border, including reviewing potential cabotage violations involving their previous employers.
"We're seeing the enforcement really ramp up on cabotage," Miller said.
Cabotage generally refers to domestic transportation between two points within a country by a foreign carrier, an activity subject to restrictions under U.S. law.
Miller said Knight-Swift (NYSE: KNX), which operates in Mexico through its TransMex subsidiary, has observed cases in which drivers faced visa revocations over alleged violations committed while working for other carriers.
"I've seen them take visas away from drivers from really a previous carrier, not even cabotage with our trucks, with our company," Miller said.
Knight-Swift Transportation is one of the largest full truckload carriers in the U.S., operating a massive fleet of more than 26,000 tractors, 96,000 trailers and 28,000 employees. Nogales, Mexico-based TransMex operates over 1,100 tractor-trailers and more than 3,000 trailers.
Miller said Knight-Swift maintains strict compliance policies governing its cross-border operations, but the increased scrutiny could discourage some Mexican drivers from entering the United States.
"I do feel like that type of capacity is going to get a little bit tighter as enforcement ramps up," Miller said.
The CEO's comments come amid growing concerns among Mexican trucking companies over U.S. enforcement of cabotage restrictions and the potential loss of drivers authorized to transport international freight.
Despite the enforcement challenges, Miller said he remains optimistic about the long-term growth of U.S.-Mexico freight transportation.
"I think long term I think Mexico is going to play a bigger role," Miller said. "I think you'll see more opportunities because of the nearshoring."
However, he cautioned that uncertainty surrounding tariffs and trade policy could affect freight volumes and investment decisions.
"Tariffs are a big unknown," Miller said.
Knight-Swift transports significant automotive freight across the border, and Miller said some customers have adjusted their transportation strategies in response to tariff developments.
"Our customer strategies are changing as the tariff situation develops," he said.
Nuevo León slashes Colombia Bridge toll fees 50% to boost cross-border trucking
The Mexican state of Nuevo León announced a 50% reduction in state-imposed toll charges for commercial trucks traveling to the Colombia-Solidarity International Bridge, a move aimed at lowering transportation costs and boosting exports to the U.S.
The reduction applies to an additional state toll collected about 500 meters before the existing bridge tollbooth on the Mexican side of the border. The fee was introduced April 14, 2025, under Nuevo León Gov. Samuel García's administration.
The discount does not affect tolls collected by the city of Laredo, Texas.
The initiative is designed to make the Colombia crossing more competitive for freight shipments and encourage logistics companies to route additional commercial traffic through the port of entry.
"By working together to reduce tolls and fees, we can help lower transportation costs, support businesses, and strengthen the movement of goods through our region," Treviño said, according to the Laredo Morning Times.
The Colombia-Solidarity International Bridge connects Nuevo León with the Laredo area and serves as an alternative route for cross-border truck shipments moving between Mexico and the U.S.
Walmart plans $400M distribution center near San Antonio, creating 425 jobs
Walmart (Nasdaq: WMT) is planning a $400 million distribution center in Cibolo, Texas, northeast of San Antonio, according to the San Antonio Express-News.
The proposed facility, identified as "Project Theo," will include a 712,500-square-foot warehouse and a connected 31,933-square-foot office building on approximately 126 acres at 3641 S. Santa Clara Road, according to a filing with the Texas Department of Licensing and Regulation.
Construction is scheduled to begin in February 2027, with completion expected in August 2029.
The project is expected to create at least 425 full-time jobs paying above the San Antonio metropolitan area's median salary.
Cibolo officials previously approved an incentive package valued at approximately $32.5 million to attract the development, including a 75% property tax abatement for 10 years.
City officials have described the proposed facility as a next-generation distribution center that will use robotics, advanced warehouse equipment and employees to manage automated operations.
The development would expand Walmart's distribution footprint along the Interstate 35 and Interstate 10 corridors, major freight arteries connecting San Antonio, Austin and other Texas markets.
Why it matters:Tougher cabotage enforcement could disrupt cross-border driver availability and add capacity pressures to supply chains already facing tariff uncertainty.
