Borderlands Mexico: China-to-Mexico Freight Spurs Growth in Laredo, Texas

China’s increased ocean container exports to Mexico are significantly boosting the border city of Laredo, Texas. As Chinese goods arrive in Mexico, they are frequently transported north to the U.S. through Laredo, enhancing the city’s role as a key port of entry. Ryan Grote, a FreightWaves SONAR market expert, highlighted this trend at the Future of Supply Chain event, emphasizing the surge in inbound imports between China and Mexico.

FreightWaves SONAR data reveals that import container bookings from China to Mexico have surged by 127% over the past five years, compared to a 36% increase from China to the U.S. The Laredo border crossing, ranked as the top U.S. trade gateway for 12 consecutive months, has seen tender volumes rise by 92% since May 2019.

The surge in trade is attributed to various factors, including Chinese manufacturers circumventing U.S. tariffs and the growth of nearshoring. Jose Minarro, managing director for 3PL Sunset Transportation in Laredo, observed firsthand the city's expansion, noting the high demand for warehouse space due to increased trade activities. Sunset Transportation has grown its facilities from a single 35,000-square-foot warehouse in 2019 to three warehouses totaling over 300,000 square feet today.

Minarro explained that Laredo’s growth is a result of Mexico’s preparation and manufacturing capabilities under the maquila program, which has been in place for over 30 years. The maquiladoras along the border, producing goods like medical devices and automotive parts, are instrumental in driving this growth.

Related Developments:

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• RJW Logistics Acquires Second Warehouse Near Dallas: Illinois-based RJW Logistics Group has acquired a 649,398-square-foot warehouse in Mesquite, Texas, to enhance supply chain control and visibility for its consumer packaged goods (CPG) customers. This facility will handle over 44 million cases annually and employ around 200 people.
• Sportswear Giant Puma Opens Distribution Center Near Phoenix: Puma has launched a new distribution center in Waddell, Arizona, to support its growth in the Southwest. This facility will process orders for wholesale partners and Puma’s golf subsidiary, Cobra, complementing existing centers in California and Indiana.

Laredo’s strategic position and robust infrastructure continue to attract significant trade and logistics investments, solidifying its status as a pivotal node in U.S.-Mexico trade dynamics.

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Source:

https://www.freightwaves.com/news/borderlands-mexico-china-to-mexico-freight-spurs-growth-in-laredo-texas