Cabotage Crackdown at the U.S.-Mexico Border

Stricter federal enforcement of cabotage rules is reshaping cross-border trucking along the U.S.-Mexico border. According to the latest Federal Motor Carrier Safety Administration (FMCSA) data, the number of active Mexican-domiciled trucking companies operating in southern border commercial zones has declined 4.3%, falling from 5,467 in late December 2025 to 5,232 as of mid-May 2026.

This represents a continued downward trend from 5,633 carriers at the end of 2024. The reduction — roughly 250 fewer operators — stems from heightened oversight by the U.S. Department of Transportation (DOT), FMCSA, and U.S. Customs and Border Protection (CBP).

What’s Driving the Decline?

Cabotage violations are at the center of the crackdown. Foreign (primarily Mexican) drivers entering the U.S. on valid visas to deliver international freight are prohibited from hauling domestic loads within the country. Recent initiatives include:

• Sharing FMCSA inspection records with CBP, allowing agents to identify prior cabotage violations and revoke visas at the border.

• Reinstatement of English Language Proficiency (ELP) requirements for commercial drivers.

• Increased penalties and enforcement focus on repeat offenders.

Reports from border regions, such as Otay Mesa, indicate hundreds to thousands of Mexican truckers have been denied entry due to these violations. While exact CBP metrics on visa revocations are limited, the impact on active border-zone operators is clear.

American Trucking Associations (ATA) Chief Economist Bob Costello attributes the drop to more rigorous enforcement of both cabotage and ELP rules. ATA has advocated for stronger penalties, including fines, disqualification, or loss of operating authority for repeat violators to protect highway safety and fair competition.

Implications for U.S. Shippers and Logistics

For shippers relying on cross-border supply chains, this shift matters:

• Potential Drayage Disruptions: Mexican carriers in border zones primarily handle short-haul drayage across the border. A sustained reduction could create bottlenecks or capacity constraints for international freight moving into the U.S. interior.

• Partnership Dynamics: Most U.S. fleets partner with Mexican carriers rather than crossing the border themselves. Fewer reliable Mexican partners may require shippers to strengthen relationships or explore alternatives.

• Broader Supply Chain Effects: While not yet causing major issues, continued declines could lead to logistical challenges, higher costs, or delays if capacity tightens.

CBP has emphasized its commitment to enforcing immigration and trade laws to protect legitimate operators and ensure fair competition.

Strategic Recommendations for Shippers

In this evolving regulatory environment, proactive planning is essential:

1. Diversify Carrier Networks — Build relationships with compliant Mexican and U.S. carriers to reduce risk.

2. Enhance Visibility — Implement better tracking and compliance monitoring for cross-border shipments.

3. Scenario Planning — Model potential capacity constraints and cost impacts from tighter border enforcement.

4. Advocate & Stay Informed — Monitor FMCSA, CBP, and industry updates as enforcement trends develop.

At Gain Consulting, we help U.S. shippers and logistics teams navigate cross-border complexities with data-driven strategies, carrier optimization, compliance support, and risk mitigation. Whether you’re facing drayage challenges, tariff impacts, or supply chain volatility, our experts deliver tailored solutions to keep your freight moving efficiently and cost-effectively.

Facing border-related disruptions? Contact Gain Consulting for a cross-border supply chain assessment and customized recommendations.

Gain Consulting partners with forward-thinking shippers to optimize logistics, ensure compliance, and build resilient supply chains.