U.S. Cabotage Enforcement Threatens Cross-Border Trucking Capacity
Enforcement is tightening at the southern border.
In Jacksonville, Florida, Knight-Swift Transportation CEO Adam Miller dropped serious warnings regarding cross-border trade operations. Speaking at FreightWaves' second annual WEX OTR Summit, Miller revealed that U.S. authorities are cracking down hard on Mexican truck drivers over cabotage violations. The scrutiny isn't just targeting current company activity. Federal agents are actively pulling visa records to scrutinize drivers' past employment histories.
It is creating friction. Driver availability is taking a hit, and capacity across the border could tighten quickly.
Cabotage rules restrict foreign carriers from picking up and dropping off domestic freight between two points inside the United States. Now, intense enforcement of those rules is disrupting haulers who move international loads every day.
We’re seeing the enforcement really ramp up on cabotage,
Knight-Swift Warns of Visa Revocations and Capacity Squeezes
The crackdown is hitting drivers who thought their records were clean.
Knight Swift which operates as one of the largest full truckload carriers in the nation with over 26,000 tractors, 96,000 trailers, and 28,000 employees runs its cross-border operations through its subsidiary, TransMex. Based in Nogales, Mexico, TransMex operates more than 1,100 tractor-trailers and over 3,000 trailers.
Even with strict internal compliance policies governing Knight-Swift operations, Miller highlighted a troubling pattern where drivers suffer penalties for actions taken under previous employers.
I’ve seen them take visas away from drivers from really a previous carrier, not even cabotage with our trucks, with our company,
That level of historical vetting could frighten qualified Mexican drivers away from taking U.S. routes entirely.
As driver authorization risks grow, capacity is poised to shrink. Yet, despite the immediate disruption, Miller pointed to long-term growth across U.S. Mexico trade. Nearshoring initiatives continue to pull manufacturing footprint south of the border. But near-term tariff policies and shifting trade rules introduce massive friction.
Because Knight Swift hauls significant automotive freight across the border, Miller noted that key manufacturing customers are constantly shifting their logistics strategies to adapt to volatile trade developments.
Nuevo León Slashes Colombia Bridge Tolls by 50%
While federal enforcement squeezes driver capacity, state officials in Mexico are attempting to ease financial pressure on cross border fleets.
The Mexican state of Nuevo León announced a massive 50% cut to state-imposed toll fees for commercial trucks heading toward the Colombia-Solidarity International Bridge. The move directly targets transportation costs, aiming to make export routes into the U.S. far more competitive.
The discount applies to an extra state toll collected roughly 500 meters ahead of the main Mexican bridge tollbooth. That specific fee was originally put in place on April 14, 2025, under Nuevo León Governor Samuel García’s administration.
Key facts regarding the toll adjustment include:
- Scope: 50% discount on Nuevo León's state-level access toll.
- Exclusions: The discount does not alter tolls collected on the American side by the city of Laredo, Texas.
- Goal: Direct commercial traffic toward the Colombia crossing as a viable alternative for cross-border freight moving between Mexico and Laredo
Regional leaders hope the toll relief gives freight carriers a clear incentive to bypass alternative bottlenecks and keep international supply chains moving.
Walmart Plans $400M Distribution Hub in Cibolo, Texas
Further north along Texas freight corridors, retail giants are doubling down on infrastructure investments.
Walmart is preparing to build a massive $400 million distribution facility in Cibolo, Texas, situated northeast of San Antonio. State regulatory filings with the Texas Department of Licensing and Regulation identify the development as "Project Theo."
The state filing reveals extensive site specifications:
- Facility Footprint: A 712,500-square-foot warehouse coupled with a connected 31,933-square-foot office building. Property Size: Situated on approximately 126 acres at 3641 S. Santa Clara Road.
- Timeline: Construction begins in February 2027, with targeted completion set for August 2029.
- Economic Impact: The next-generation distribution hub will create at least 425 full-time jobs paying above the local median salary.
City officials in Cibolo paved the way for the development by approving an incentive package valued at roughly $32.5 million, anchored by a 10-year, 75% property tax abatement. The site will feature advanced warehouse equipment and robotics operating alongside employees to manage automated logistics.
Positioned near Interstate 35 and Interstate 10, the new facility expands Walmart's distribution coverage across critical Texas freight corridors connecting San Antonio and Austin.
