News / Logistics players expand operations as near-shoring boosts US-Mexico traffic

Photo: © Dilok Klaisataporn | Dreamstime.com

North American logistics providers are jockeying for growth in the cross-border traffic between the US and Mexico.

The latest to bolster its strength in the sector is Ryder System, which opened a new warehouse in Laredo this week and completed the expansion of a drayage yard, south of the border in Nuevo Laredo.

Three miles from the World Trade Bridge that links the two countries, Ryder’s 228,000 sq ft warehouse can accommodate 143 trailers, and Ryder’s Mexican subsidiary has increased parking space for tractors by 42% and for trailers by 39%.

Over 80% of Ryder’s moves across the Mexican border happen at Laredo, which replaced the port of Los Angeles as the biggest international gateway for US imports last year. The logistics and trucking firm handles about 250,000 movements a year across the border.

Ricardo Alvarez, VP of supply chain operations for Ryder Mexico, said: “If you look at the market, truck border crossing activity between the US and Mexico is up more than 20% annually since the pandemic, as more businesses look to near-shoring to diversify their supply chains and shorten lead times.”

North American rail traffic numbers also reflect the rise of Mexican traffic. For the first seven weeks of this year, Mexican rail carriers reported a 6.7% increase in carloads, containers and trailers. US railways saw 0.7% growth during the period, while their Canadian counterparts suffered a decline of 4%.

Mauricio de la Cerda, head of growth, North America region, at Mexico-based forwarder Nowports, also attributed the rise in warehouse activity on both sides of the border to the ‘tailwind of near-shoring’. After spectacular growth in 2022, his company saw less momentum, but still expansion, last year.

“The nearshoring trend continues,” he added.

The automotive sector, a major focus for Nowports, has been going strong, but other sectors are also on the rise, he observed.

Meanwhile, for its cross-border traffic, Ryder is targeting primarily the automotive and hi-tech sectors, alongside industrial manufacturing and consumer packaged goods. And the Miami-based company has indicated it is looking for further expansion opportunities along the border with Mexico.

It is a strategy forwarder Team Worldwide has also been pursuing. Rather than build up a footprint in Mexico, it has been strengthening its presence on the northern side of the border to cope with growing demand.

Cross-border flows have been disrupted on several occasions by surges of migrants headed for the US and exacerbated by truck inspections by state police on the orders of the governor of Texas. Mr de la Cerda acknowledged that this had been an issue, although relations between the state of Texas and Nuevo Leon have been strong, unlike relations on the federal level, he added.

“It’s been tricky. We’re looking at other crossings,” he said, adding that Nowports was also working on increasing its air transport offering.