Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: US-Mexico trade hit $74B in August, Port Laredo No. 1 again; Imperative Logistics Group acquires freight forwarder Jamco; Gebruder Weiss partners with Mexico load board Cargado; and Avery Dennison opens $100M facility in Queretaro, Mexico.
US-Mexico trade hit $74B in August, Port Laredo No. 1 again
U.S.-Mexico trade totaled $73.77 billion in August, an increase of 4% from the same month one year ago, according to the latest data from the Census Bureau.
It was the eighth consecutive month and 18th of the past 19 months that Mexico has been No. 1 in trade with the U.S.
Canada ranked No. 2 for trade with the U.S. in August at $63 billion, while China was third at $51.8 billion.
Through the first eight months of the year, trade between the U.S. and Mexico totaled $560 billion. Trade with Canada totaled $509 billion, while China trade came to $373 billion.
The top three exports from Mexico to the U.S. during the month were computers ($4.72 billion) passenger vehicles ($4 billion) and auto parts ($3.3 billion), according to the Census Bureau.
Top imports from the U.S. to Mexico in August were gasoline and other fuels ($3 billion), auto parts ($1.74 billion), and computer parts ($1.73 million).
Nearshoring of manufacturing to Mexico continues to boost cross-border trade, according to Jordan Dewart, president of Redwood Mexico, the cross-border shipping arm of Chicago-based fourth-party logistics provider Redwood Logistics.
“We track nearshoring foreign direct investment and we continue to see more new players investing in Mexico, existing expansions,” Dewart told FreightWaves in an email. “Some companies are playing the wait and see game pending the results of the upcoming U.S. election, notably Tesla. But they are not the only EV player in Mexico as we are seeing many more (notably BYD) announce investments in Mexico. Much of this is coming in from Asia, especially China, and West Coast Mexican port volumes were up year over year as noted in the September issue of our Redwood Cross Border Index.”
Dewart said demand for cross-border trucking capacity continues to climb but is being affected by Mexican driver shortages and cargo theft issues.
“Volumes that we handle are up significantly, year over year, and this may be due to our diverse customer base including healthcare, food & beverage, automotive, retail and manufacturing,” Dewart said. “Mexican trucking rates continue to hold and are on the rise due both to increased demand and lack of drivers. It is continually more difficult to find reliable drivers willing to get behind the wheel of a truck in Mexico. Much of this is due to increased theft and violence on Mexican highways. It’s really getting out of hand, many companies now only drive during daylight hours which slows transit and is suboptimal in terms of efficiency.”
Port Laredo, Texas, regained the No. 1 ranking as the top U.S. trade gateway in August among the nation’s 450 airports, seaports and border crossings, according to Census Bureau data analyzed by WorldCity. The Port of Los Angeles ranked No. 1 in July.
Trade in August totaled $30.7 billion in Laredo, Texas, edging out the Port of Los Angeles, which saw trade of $29.5 billion during the month. Chicago O’Hare International Airport ranked third at $25.3 billion.
Port Laredo, Texas, regained the No. 1 ranking as the top U.S. trade gateway in August among the nation’s 450 airports, seaports and border crossings, totaling $30.7 billion in trade. (Photo: FreightWaves)
Imperative Logistics Group acquires freight forwarder Jamco
Imperative Logistics Group announced it has acquired Laredo, Texas-based Jamco, a U.S.-Mexico cross-border logistics provider.
Officials for Portland, Oregon-based Imperative Logistics Group said the acquisition fits with the company’s growth strategy.
“Jamco’s capabilities align perfectly with our commitment to providing comprehensive, highly specialized premium logistics solutions,” Dante Fornari, CEO of Imperative Logistics Group, said in a news release. “Jamco will significantly enhance our service offering by adding highly differentiated and integrated cross-border trade and logistics services. We’ll be better positioned to support existing customers who manufacture in Mexico while providing Jamco clients with our expedited mission-critical shipping and global forwarding capabilities.”
Terms of the acquisition were not disclosed.
Headquartered in Laredo, Texas, Jamco offers customs brokerage, trade consultation, materials management and advanced customer information systems.
Gebruder Weiss partners with Mexico load board Cargado
Gebruder Weiss recently announced it is partnering with Cargado, an invite-only load board for cross-border freight between the U.S. and Mexico.
“Gebruder Weiss continues to enhance its global suite of services for customers, and we’re delighted to be one of the companies invited to Cargado’s load board,” Kevin Sendre, director of full truckload North America for Gebruder Weiss, said in a statement. “Cargado’s vision to make cross-border freight interconnected, dependable, and transparent fully aligns with our ethos, and we look forward to our partnership with the team.”
According to a news release, Gebrüder Weiss has increased its presence at the U.S.-Mexico border in the past few years, with two new Texas facilities – one in El Paso and another in Laredo. Its agreement with Cargado further extends the company’s ongoing cross-border logistics growth.
“Demand for nearshoring has exploded in the past few years, and the movement of freight between the U.S. and Mexico has exploded as a result,” Matt Silver, CEO and co-founder of Cargado, said in a statement. “Gebruder Weiss is a highly respected industry leader, and we’re delighted to welcome them to the load board.”
Avery Dennison opens $100M facility in Queretaro, Mexico
Avery Dennison (NYSE: AVY) has opened a factory in Queretaro, Mexico, that will produce radio frequency identification (RFID) tags and digital ID technologies.
The Queretaro plant is Avery Dennison’s largest RFID site globally, according to a news release.
The facility will create 938 direct jobs.
The plant will manufacture RFID solutions to drive adoption of digital ID technologies across industries including apparel, food, health care, logistics and general retail, the company said.
Representing a total investment of over $100 million, the 269,098-square-foot plant aligns with Avery Dennison’s global and regional ambitions, according to Francisco Melo, president of the Solutions Group at Avery Dennison.
“The state of Queretaro and the municipality of Queretaro have a distinct focus on sustainable development, while benefiting from a privileged geographic location and skilled workforce,” Melo said in a statement. “We continue to see growing demand for our RFID and digital ID solutions across the Americas region.”
Mentor, Ohio-based Avery Dennison is a multinational manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products.
The post Borderlands Mexico: US-Mexico trade hit $74B in August, Port Laredo No. 1 again appeared first on FreightWaves.
