China-to-Mexico freight spurs growth in Laredo, Texas
ATLANTA — China’s ocean container exports to Mexico have been a boon for the border city of Laredo, Texas.
As more China-based goods are arriving in Mexico, they’re increasingly being shipped north to the U.S. through the Laredo, Texas, port of entry, in response to FreightWaves SONAR market expert Ryan Grote.
“What we’re seeing is a surge in inbound imports between China and Mexico. A whole lot of that’s Chinese goods which are a piece in progress — those widgets at the moment are shipping into Mexico,” Grote said during a market update discussion Wednesday at FreightWaves’ Way forward for Supply Chain event in Atlanta.
“Due to that, the progression to get those goods into america is to ship those goods cross-border from Mexico to the U.S. … We’re really seeing a boom in Laredo, Texas, as lots of that freight passes through the border and into the U.S. From a supply chain shipper perspective, it’s something to contemplate as the availability chain starts to shift.”
The FreightWaves SONAR Inbound Ocean TEUs Volume Index shows that import container bookings from China to the U.S. (IOTI.CHNUSA) are up 36% over a five-year period and 11% 12 months over 12 months.
Against this, bookings from China to Mexico (IOTI.CHNMEX) are up 127% over the past five years and 24% over the past 12 months.
The Laredo border crossing was the No. 1-ranked U.S. trade gateway in March among the many nation’s 450 airports, seaports and border crossings. Laredo tender volumes (OTVI.LRD) are up 92% versus May 2019. The Laredo port of entry has been ranked No. 1 for 12 consecutive months.
Related: Kuehne+Nagel expanding in Texas to fulfill rising manufacturing demand
While it’s not possible to say definitely what’s driving the expansion, some speculate it includes Chinese manufacturers attempting to avoid U.S. tariffs, in addition to the expansion of nearshoring in manufacturing south of the border.
Jose Minarro, managing director for 3PL Sunset Transportation’s operation in Laredo, said he’s seen the expansion in trade and developments across town firsthand.
“It’s crazy. I personally invested in constructing a warehouse last 12 months. It’s been a unbelievable experience, because there’s lots of demand for a lot of things — space, since the occupancy rate continues to be pretty high. The entire warehouses are full,” Minarro told FreightWaves in an interview.
In 2019, Sunset Transportation opened its first facility in Laredo, a 35,000-square-foot warehouse. Today, the corporate has three warehouses totaling over 300,000 square feet.
“I see the expansion as a side effect. I’ve been a spectator for what has happened over the past 28 years that I’ve been in Laredo. It’s been an evolution of how things are being moved between the U.S. and Mexico,” Minarro said.
From 2008 until about three years ago, only a few recent warehouses went up, Minarro said.
“For a few years, Laredo built, overall at probably the most, 1,000,000 square feet of recent warehouses a 12 months,” Minarro said. “Right away, there’s 9 million square feet of warehousing under construction this 12 months. That just tells you the story about what’s occurring. What you construct gets occupied by any person that needs a distribution facility out of Laredo to cover the Southern region of the U.S. to final distribution or direct to customers.”
In Laredo, Sunset Transportation offers services reminiscent of Mexico and U.S. customs clearance, warehousing, and transloading access. The corporate services freight from everywhere in the country, with a give attention to central Mexico, particularly within the Bajio, Monterrey and Mexico City regions, capitalizing on the high presence of business and manufacturing customers in those locations.
Minarro said there are numerous the explanation why Laredo is booming.
“Mexico has develop into a really, very strong partner of the U.S. I feel people need to know that Mexico has been preparing for that for a few years,” Minarro said. “Mexico has been manufacturing under the maquila program for over 30 years.”
Mexico’s maquiladoras are factories mainly positioned along the border which are run by foreign firms and export their products to the countries where those firms are based.
There are over 3,000 maquiladoras along the border, making products reminiscent of medical devices, consumer products, electronics, and aerospace and automotive parts.
“I began working within the maquila industry 30-something years ago in Juarez, Mexico, so the manufacturing knowledge is there and Mexico is prepared. Now the chance knocks on the door,” Minarro said.
Related: US-Mexico trade tops $200B in first quarter of 2024
BNSF sues Texas city over stalled logistics center
BNSF Railway Co. has filed a lawsuit against Gunter, Texas, for blocking its plans to construct a big logistics center in town, in response to the Fort Price Star-Telegram.
The Class I railroad had been planning a 900-acre rail logistics center in Gunter for greater than a 12 months. But a newly elected City Council is now fighting the event.
BNSF alleged city officials violated state laws after they denied the corporate’s application for preliminary plat approval of its over 900-acre logistics facility in April.
BNSF also claims the appliance for the power must have passed when a 30-day clock ran out with no council motion. The Gunter council then denied the permit at a following meeting, in response to the lawsuit.
A BNSF spokesperson declined to comment to the newspaper, citing the railroad’s policy of not commenting on pending litigation.
RJW Logistics acquires second warehouse near Dallas
RJW Logistics Group has acquired a 649,398-square-foot warehouse in Mesquite, Texas, its second facility within the Dallas suburb.
The acquisition reflects the corporate’s give attention to increasing supply chain control and visibility for purchasers. The Illinois-based logistics solutions provider focuses on providing supply chain solutions for consumer packaged goods shippers.
The warehouse is predicted to ship greater than 44 million cases annually across the U.S. The power will service 225 CPG customers and employ roughly 200 people.
Sportswear giant Puma opens distribution center near Phoenix
Puma has opened a distribution center in Waddell, Arizona, to support the corporate’s growth within the Southwest, one in all the corporate’s strategic priorities.
The warehouse will process orders from wholesale partners and Puma’s golf subsidiary, Cobra. The power can even complement Puma’s existing distribution centers in Torrance, California, and Whitestown, Indiana.
Waddell is 32 miles west of Phoenix.
Puma Corp. designs and manufactures athletic and casual footwear, apparel, and accessories. The corporate is headquartered in Herzogenaurach, Germany.
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