Covenant Transport to close its truck service in Mexico
Story by: Noi Mahoney at FreightWaves.
Covenant Transport has decided to end all service to the interior of Mexico, citing dropping spot market pricing, increasing detention times and an inability to gain the freight density needed to balance costs.
“After five years servicing the interior of Mexico, Covenant Transport Services will, in coming months, end our Mexico service offering,” said Andy Vanzant, senior vice president of Highway Services at Covenant Transport Services.
“This tough, data-driven decision is rooted in our desire to operate a network that brings value to our employees, our professional drivers and our shareholders,” Vanzant said.
In an email to FreightWaves, Vanzant said, “spot market pricing in and out of Mexico has dropped in the last year, negatively impacting our Mexico lanes.”
Vanzant also stated, “Our drivers experience major delays at the borders, with long transloading and inspection times. These delays have negatively impacted our business and created driver-unfriendly conditions and freight. We have been unable to gain the density needed to balance the gateways to our reefer flagship, not to mention in the interior of Mexico.” According to Mahoney and his article in freightwaves.com
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Source and credits: freightwaves.com / Noi Mahoney / iTrucker / Mario Pawlowski
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