Mexico stays top US trade partner in July, Laredo No. 1 gateway
The partnership between Mexico and america continues to solidify with Mexico being the highest U.S. trade partner in July at $65.3 billion, a 0.24% year-over-year (y/y) increase.
It was the seventh time previously eight months Mexico ranked No. 1 in monthly international commerce with the U.S., in line with the most recent data from the U.S. Census Bureau.
Mexico’s trade with the U.S. 12 months so far is $462 billion, ahead of Canada at $450.3 billion and China at $322.3 billion.
If Mexico holds on for the remainder of 2023 as the highest U.S. trading partner, it will only be the second time in history the country has done so. The primary time was 2019, when U.S.-Mexico trade totaled $612.8 billion, in comparison with Canada’s $611.4 billion and China’s $555.6 billion.
From the Seventies through 2014, Canada was the highest trading partner of the U.S. China earned the No. 1 rating from 2015 through 2018. Canada regained the highest spot in 2021 and 2022.
Nearshoring of producing to Mexico helps to spice up cross-border trade with the U.S., in line with Patty Hinojosa, vp of Mexico sales and operations for CargoQuotes.
“We’ve got recently witnessed a remarkable surge in partnership requests from recent manufacturing plants within the [Mexican cities] of Ramos Arizpe and Monterrey areas,” Hinojosa said. “These corporations are gearing as much as roll out their first batch of ultimate products to their eager customers within the USA.”
CargoQuotes, based in Lee’s Summit, Missouri, is a full-service freight brokerage specializing in cross-border shipments.
The manufacturing sector in Mexico has 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.
For the sixth straight month, Laredo, Texas, retained the No. 1 spot among the many nation’s 450 international gateways for trade, in line with WorldCity.
Laredo recorded $26.1 billion in two-way trade during July, with Mexico commerce accounting for $25.4 billion, in line with the most recent U.S. Census Bureau data analyzed by WorldCity.
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The Port of Los Angeles ranked No. 2 with $24.3 billion and Chicago O’Hare International Airport was No. 3 and reported $24.2 billion in trade.
As nearshoring efforts proceed to ramp up in Mexico, there are signs of growing pains, in line with Jordan Dewart, president of Redwood Mexico. Redwood Mexico is the cross-border shipping arm of Chicago-based fourth-party logistics provider Redwood Logistics.
Dewart said the demand for cross-border trucking capability continues to climb but is being affected by rising diesel costs, Mexican driver shortages, cargo theft and the dollar/peso conversion depreciation, which have contributed to increased shipping per mile and rate of interest charges.
Rates for shipments crossing the Texas-Mexico border averaged $3.08 per mile, in line with the Department of Agriculture, in comparison with the U.S. domestic average of $2.09.
“If logistics service providers and shippers are complaining about high rates of interest within the U.S., roughly 6%, it’s double that in Mexico,” Dewart said. “Mexican carriers aren’t rushing out to expand their fleets while they’re at capability. This hasn’t created an unrecoverable issue at present, but when proper investments aren’t made now there may be similar disruption on the roads in comparison with what was experienced on the ports in 2020 through 2022.”
Dewart said as U.S.-Mexico trade continues to extend, the disparity between the dollar and peso should ease, but shippers ought to be proactive with locking in freight rates.
“Current shipping rates and rates of interest that logistics service providers and shippers are experiencing are exorbitant,” Dewart said. “The expectation is for it to proceed as manufacturers experience growing pains of their nearshoring moves. Shippers who’re asking for his or her rates to be lowered this summer are being urged by Mexican carriers to up their rates and lock them in for the following three years to avoid seeing market rates skyrocket.”
Production, exports of Mexican-built trucks slip in August
After seven consecutive months of growth, Mexico’s monthly truck production and exports declined in August, in line with data from Mexico’s National Association of Bus, Truck and Tractor Producers (ANPACT).
The production of professional quality trucks decreased 3.9% y/y to 19,413 units, while exports fell 15% y/y to fifteen,114.
ANPACT President Miguel Elizalde said the declines weren’t indicative of a slowing market.
“These figures are lower than last 12 months, however it doesn’t mean that it’s a downward trend, moderately, the variety of vehicles that were produced in August 2022 were very high, so if we compare it month by month, production was lower,” Elizalde said during a recent video news conference.
The U.S. was the overwhelming destination for trucks produced in Mexico during August, accounting for 96% of exports, followed by Canada at 2.5% and Colombia at about 1%.
The ten truck makers and two engine producers in Mexico which can be members of ANPACT include Freightliner, Kenworth, Navistar, Hino, International, DINA, MAN SE, Mercedes-Benz, Isuzu, Scania, Cummins and Detroit Diesel.
Maersk teams with Fabric to open Dallas e-commerce center
Container shipping giant Maersk has opened an automated-fulfillment center in Dallas, powered by robotics solutions and technology from Fabric.
The 38,000-square-foot facility features an AI-driven, automated e-commerce success solution geared toward maximizing warehouse productivity while minimizing real estate footprint requirements, in line with Erez Agmoni, Maersk’s global head of innovation for logistics and services.
“The expansion of e-commerce continues to reshape the retail landscape,” Agmoni said in a news release. “As we glance to assist our customers streamline their supply chains end-to-end, we see Fabric’s automated success solution as one which is very able to meeting the demand for efficient warehousing and success where labor and real estate resources are scarce.”
Tel Aviv, Israel-based Fabric is a retail technology company that gives intelligent robotic success systems. Denmark-based Maersk business activities include shipping, port operation, supply chain management and warehousing.
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Cargo checkpoint opens at Texas border port of entry
Officials from each side of the U.S.-Mexico border recently inaugurated a brand new $3.6 million checkpoint on the Mexican side of the Colombia Solidarity International Bridge geared toward speeding up crossing times for each pedestrian and cargo trucks.
The bridge connects Laredo with town of Nuevo Laredo, Mexico.
The checkpoint was developed by officials from the Mexican state of Nuevo Leon, with input from the U.S. Border Patrol and Customs and Border Protection. It includes two lanes for pedestrian vehicles, three lanes for business vehicles and inspection booths for every lane.
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