Shippers must seek out experienced cross-border providers during Mexican market boom

Companies are more intrigued than ever by Mexican manufacturing prospects. Mexico unseated China as the top exporter to the U.S. for the first time in 2023 after a multi-year climb. During a similar period, the Laredo, Texas and Tucson, Arizona markets have skyrocketed in popularity.

Mexico is expected to continue to win business – and grab headlines – as the well-documented and ongoing nearshoring trend continues. Foreign domestic investment in Mexico hit a record high over the past two years.

Getting Started in Mexico
It will take several years to see the full impact of manufacturing investments in Mexico because building facilities from the ground up is inevitably a complex and time-consuming process.

That said, manufacturers with facilities already in Mexico have flexed up their operations with relative speed. In some cases, this can be as simple as adding an additional shift to an existing operation. Many has taken this route.

Finding the Right Logistics Partner for Cross-Border
With trade between the U.S. and Mexico heating up, more and more shippers are evaluating their options when it comes to cross-border logistics partners.

While many logistics companies offer some level of cross-border services, the complexity of moving freight efficiently between Mexico and the U.S. demands an experienced and innovative partner.

Cross-border is very complex. It is unique compared to domestic freight in the U.S., and it brings a whole new set of challenges.

Those challenges can include managing paperwork, understanding applicable taxes and duties and navigating differing regulations between the companies. When logistics partners are not adept or experienced at solving those issues, it can lead to frustration and costly delays.

The Power of Experience with Cross-Border
Shippers are urged to seek out this level of experience – along with the capacity to flex up as volumes grow – as they continue to assess their cross-border options. As exports from Mexico continue to climb, these relationships will prove more important than ever.

Source: FreightWaves

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