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California’s Electric Truck Mandate Could Impact Mexican Transporters

by Daisy D.
07/08/2024
in Logistics & Transportation

California’s Advanced Clean Fleets rule, set to take effect in January 2025, is posing challenges for Mexican cross-border trucking operators. Many of these operators rely on aging diesel vehicles imported from the United States, which may not meet California’s new standards.

Miguel Elizalde, owner of Mobility Sustainable based in San Diego, highlighted concerns about the mandate potentially forcing some Mexican fleets out of business due to the high costs associated with electric trucks, which can exceed $100,000 each.

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Express Service Transport Inc.’s CEO, Israel Delgado, noted that compliance readiness among Mexican trucking companies is low, citing financial constraints and limited availability of electric vehicle infrastructure in Mexico. He emphasized the disparity between the support available to U.S. companies versus Mexican counterparts.

Elizalde also pointed out that Mexico lacks sufficient charging infrastructure, with around 1,100 charging stations nationwide, primarily concentrated in major cities like Mexico City and Monterrey. The scarcity of suitable charging facilities for heavy-duty trucks remains a significant hurdle.

Instead of mandating electric trucks, Elizalde suggested that the government focus on performance-based policies to facilitate fleet decarbonization. He advocated for a range of emissions reduction technologies, including hybrids, natural gas, and hydrogen trucks, to accommodate varying operational needs and financial capacities within Mexico’s diverse trucking sector.

Other Developments in Cross-Border Trucking and Trade

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The Korea International Trade Association (KITA) inaugurated its Dallas office to bolster Korean business interests in Texas. The move aims to facilitate stronger ties between Korean companies and the U.S. market, leveraging Dallas’s strategic location as a logistics hub.

These developments highlight ongoing transformations in cross-border trade and logistics, reflecting both challenges and opportunities for stakeholders in the evolving global economy.

Breaking supply chain news is just a click away at The Supply Chain Report. Enhance your knowledge of international trade at ADAMftd.com with free tools.

#ElectricTruckMandate #CrossBorderTransport #LogisticsChallenges #TruckingIndustry #SupplyChainNews

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The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

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