Shipping from the US to Mexico and from Mexico to the US, shows no sign of slowing. According to Freightwaves, Mexico ranked as the United States’ top trading partner for the second consecutive month in January. Mexico’s total trade with the U.S. increased a huge 12% year over year to $64 billion, compared to the same period in 2022. Of that total, $37 billion were exports of goods and services, shipping to Mexico from the US, and $27 billion were imported, shipping from Mexico to the US. Laredo, the busiest border crossing site with Mexico, ranked number 2 by value among all the nation’s 450-plus airports, seaports, and border crossings — and number 1 by value of all border crossings.
This certainly supports what we are seeing at Momentum Transportation, a Landstar agent, as more companies take advantage of a nearshoring strategy, moving Asia-based and other global manufacturing to Mexico. One sector where this strategy is rapidly increasing is in data center logistics and mission critical equipment production and manufacturing, where cloud components like servers, racking, electronics, and green energy components, play a key role. Other sectors, including automotive and industrial manufacturing are also turning to nearshoring in Mexico as a way to better keep supply chains moving efficiently and cost-effectively.
In this article, we’ll address the issues shippers face, whether it’s to Mexico from the US or Mexico to the US. We’ll also explore how finding the right, expert cross-border partner can alleviate these challenges.
NORTHBOUND: Shipping from Mexico to the US
For companies that do manufacturing in Mexico, with finished goods that need to be transported northbound back into the US, there can be challenges:
- Equipment standards and availability. With such a large volume of outbound finished goods that need to be transported back to the US, capacity is very competitive intra-Mexico — in short, there is a lack of clean, secure trailer capacity within Mexico. This means that those with access to good equipment have an advantage. Through Landstar’s Laredo-based Mexico Operations, we are able to inspect cargo and trailers thoroughly and consistently — and address problems early and quickly. For example, if trailers get damaged during the loading or unloading process, Landstar uses inspections to identify and correct any issues before a problem or damage occurs.
- Transloading issues. Most shippers don’t want to transload a shipment coming out of Mexico. This includes unloading and reloading onto different transportation equipment to go the final leg into the US. This can cause delays and increase risks of damage or theft. Instead, they prioritize door-to-door service from Mexico-based manufacturing plants in Mexico to the US destination. Landstar offers this via trailer exchange while still supporting the efficiency of managing tractors and trucks that stay in the US, as well as the tractors and trucks that remain in Mexico. Landstar has regular, experienced, fully-vetted drivers that run both legs — from Mexico to the US border and from the border into the US to the final destination.
SOUTHBOUND: Shipping from the US to Mexico
Once shipments make it to their destination in the US, then the trucks have to go home — back to Mexico! At Landstar, we estimate that for every four shipments that come into the US, there is only one ‘backhaul’ shipment to fill that truck with to take goods from the US into Mexico.
Because the demand for US to Mexico shipments is far lower, this creates a great deal of price competition for backhaul loads. Shipment rates are much more aggressive — with so many trying to refill their now empty trucks before they drive them back into Mexico. With so much manufacturing in Mexico, the good news is that many truckloads of raw materials get shipped southbound.
An Experienced Cross-Border Partner
Landstar has arranged service into and out of Mexico since 1999, moving more than 130,000 loads annually through 11 gateways. As an independent agent of Landstar, Momentum Transportation has access to a U.S.-Mexico Logistics Service Center, a 31,000-square-foot logistics facility strategically located for cross border operations in Laredo, TX.
The cross border facility is located on a 50-acre site that accommodates 450 trailers with room for future expansion. For exclusive use by Landstar and its agents, the facility is highly secure with 24/7 guards, inspectors and video surveillance, and is a C-TPAT certified site. It also has a 30-bay cross-dock and transload facility, along with a dedicated platform and heavy/specialized freight area with a custom 120-ton, stand-alone bridge crane. Our transload services allow shipments to move with ease and efficiency across the border, safely and efficiently.
Here are some other ways that Momentum can help customers with cross-border operations:
- Our established, proven SOPs custom authored by our cross-border experts help smooth the way with Mexico partners
- Our bilingual staff who can manage your shipments on both sides of the border
- Our “Boots on the Ground” in Mexico act as an extension of your company with careful management and local oversight throughout the country
Let Momentum Transportation, an Award-Winning Landstar Agent, Be Your Most Trusted Partner
Landstar offers a global transportation network built for the 21st century. Compared to an ordinary logistics company, Landstar is among the safest trucking companies you can work with as demonstrated by our industry-leading safety performance statistics. We offer reliable transportation capacity with greater visibility and flexibility to meet our customers’ evolving needs.
Landstar is a $5.3 billion company with 1,100 operating agency offices, over 9,800 trucks, more than 18,500 trailers, plus over 76,000 3rd party capacity partners. More than 25,000 businesses worldwide count on Landstar to deliver, because they know Landstar can handle whatever customers send our way. Whether you’re looking to work with Landstar, Landstar trucking or heavy hauling companies, we have a solution for you! Contact us today at www.landstar-agent.com