Michigan-based 3PL goals to capitalize on Mexico trade through acquisition
Supply Chain Solutions LLC (SCS) recently acquired Dallas-based G4 Logistics International, a move directed at boosting cross-border services as more firms leave China and nearshore manufacturing operations south of the border, in line with SCS CEO Les Brand.
“China trade is slowing down and it significantly took an enormous portion of our revenues down because consumers are buying locally now,” Brand told FreightWaves.
The acquisition of G4 Logistics adds about 20 employees to SCS and offices in Mexico City and Dallas, in addition to expands SCS’ offerings to cross-border shippers.
“The people at [G4 Logistics International], they’ve been friends of ours for a very long time. Now we’re just getting the family a bit of closer,” Brand said. “Once we saw China trade begin to decelerate a bit … we thought we wanted to accumulate our cross-border relationship, not only with Mexico, but in addition in Canada.”
Mexico was the highest U.S. trade partner in July at $65.3 billion, marking the seventh time prior to now eight months Mexico ranked No. 1 in monthly international commerce with the U.S.
Mexico’s trade with the U.S. 12 months thus far is $462 billion, ahead of Canada at $450.3 billion and China at $322.3 billion.
Nearshoring of producing continues to spice up cross-border trade between the U.S. and Mexico. The manufacturing sector in Mexico already attracted almost $10 billion in foreign direct investments in the primary eight months of 2023, in line with Statista, in comparison with $13.7 billion in all of 2022.
G4 Logistics, founded in 2016, is a full-service logistics company providing international freight forwarding, transportation management, freight brokerage and contract logistics services. G4 Logistics will transition and be folded into SCS.
The take care of G4 is the eighth acquisition for Grand Rapids, Michigan-based SCS since Brand founded the corporate in 2001. Brand said the acquisition of G4 will add transactional brokerage services to SCS’ offerings.
“What we do is help our clients improve the performance of their supply chain, offering technology, consulting, trade management, managed transportation and contracts,” Brand said. “What we didn’t have was a transactional brokerage — a brief, quick, responsive service that a whole lot of our clients actually need.”
G4 Logistics also has a whole lot of experience with cross-border automotive shipments and other related industries, in line with Brand.
“They do durable manufacturing, foods,” Brand said. “By industry, we’re touching a whole lot of pharmaceuticals, we’re touching a whole lot of food, which we like right away. Each are high growth, things are stable. With automotive, we’ll see if wheels go down or wheels up.”
Brand said SCS can be taking a look at cross-border trade opportunities in Canada, Brazil and India. Along with the acquisition of G4 Logistics, SCS is within the technique of acquiring a Mexico City-based freight forwarding company.
“We’re preparing for India right away, we’re preparing a bit of more for Canadaand this Mexico relationship goes to be great for us. We do a whole lot of work with Brazil and that’s one other big trading partner with Mexico,” Brand said. “What the Mexico City freight forwarder will help us do is support the European inbound automotive imports into Mexico, especially German consolidations down into the automotive hubs down there.”
San Antonio mulls banning overnight truck parking
The San Antonio City Council could soon consider an ordinance that might ban tractor-trailer parking along all nonresidential city streets between 2 and 6 a.m.
“It might probably be an actual public safety issue once you’ve got big 18-wheelers lined up on the side of a road, and cars need to swerve to miss them,” San Antonio Councilman Marc Whyte told the San Antonio Report.
City and county ordinances in San Antonio already restrict parking in residential areas between 10 p.m. and 6 a.m., and the town also prohibits parking trucks in a house’s front yard or on the curb of a residential property.
The proposed ban on overnight tractor-trailer parking was recently reviewed by the town’s public safety committee and could possibly be taken up soon at a City Council meeting.
Texas-based electric mini-truck maker begins production
Electric mini-truck maker Ayro recently began low-rate initial production (LRIP) of the corporate’s first vehicle, often called the Vanish, a utility truck with a modular design intended for a wide selection of urban uses, in line with a news release.
Ayro is a designer and manufacturer of electrical industrial vehicles. The corporate was founded in 2017 and is predicated in Round Rock, Texas, about 20 miles north of Austin.
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LRIP is a limited manufacturing run that is meant to validate the efficiency of the production processes and systems designed to construct the Vanish, the corporate said. Training, tools, processes and quality measures are evaluated as the corporate prepares to ramp as much as higher production rates.
“We imagine entering LRIP for the Vanish is a serious milestone for Ayro,” CEO Tom Wittenschlaeger said in an announcement. “Inside just a few weeks, we anticipate having the ability to deliver the primary vehicles to our dealers and partners so that they can begin showing and selling the Vanish beyond pre-orders.”
The Vanish is designed to function a sustainable alternative to gas-powered vehicles typically utilized in industrial fleets.
$9.9M price of marijuana seized at World Trade Bridge
U.S. Customs and Border Protection officers recently seized greater than 2 tons of marijuana on the World Trade Bridge in Laredo, Texas.
The seizure occurred Sept. 14 when CBP officers were checking a tractor-trailer hauling a load of home goods from Mexico. Officers reportedly discovered 177 packages containing a complete of 4,466 kilos of alleged marijuana throughout the trailer. The narcotics have a street value of $9.9 million.
CBP seized the narcotics and turned the case over to Homeland Security Investigations.
![](https://www.freightwaves.com/wp-content/uploads/2023/09/22/CBP_marijuana_Laredo-1.jpeg)
Watch: Waabi proclaims $10M take care of Uber Freight.
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