Sunday, September 24, 2023

The cross-border market between Mexico and the US requires strategies that increase efficiency

Given the relocation of companies and the restructuring of supply chains, it is essential to develop a long-term strategy with experienced carriers to implement and promote changes that lead to efficiencies in the cross-border market between Mexico and the United States.

“Carriers have realized the rise in cross-border demand and the need to shift their supply chains through a strategy associate shoring, Shippers are looking for ways to reduce their supply chain lead times and relocation is one of them. But they should consider their transportation strategy within the framework of this wave of migration,” said Schneider and the United States-Mexico Foundation.

in his latest report Outlook for the US-Mexico cross-border marketMentioned that the implementation of only technologies in verifiable digital credentials would streamline customs procedures and ease the flow of goods and people.

This, This will reduce the waiting time at the border by 10 minutes and will mean an additional 388 containers per month That could enter the United States from Mexico with $25.9 million worth of cargo crossing through the four border states of Arizona, California, New Mexico and Texas.

He noted that approximately 80% of cargo crossing the US-Mexico border is carried by truck and with this growth in the North American region, capacity demand will only increase over time.

“It is important to develop a long-term strategy with experienced carriers. Discussing your network and needs with your carrier is a good starting point. Schneider works with its partners to determine a strategy. Now is a good time to assess, to see where it makes sense to have a nearby location or warehouse,” he said.

In addition to discussing joint transportation strategies, you should also coordinate with companies that are working with others to improve US-Mexico trade and transportation conditions.

“There’s a Bright Future for Cross-Border Trade, It’s Time to Lead north american way“, Said.

the companies agreed 2023 is a year of transition and a time to restructure supply chains, and an opportunity to source essential raw materials from partners and reliable democratic allies, thereby reducing dependence on countries that may not share the same values ​​and interests in the long run. i.e, associate shoring Which means flexible chains, stronger economies and greater national security.

He recalled that during the pandemic, Mexico and Canada cemented their role as the United States’ main trading partners, overtaking China. On the one hand, they exchanged a record amount of $779 billion ($billion) in 2022, while Canada and the United States exchanged $793 billion in the same year.

Furthermore, 2022 went down in history as one of the best years in Mexico in terms of attracting foreign direct investment (FDI), which totaled $35.3 billion, a 12% increase compared to 2021 . The United States and Canada were the main investors that year with $15 billion and $3.8 billion, respectively. The manufacturing sector captured 36% of the total investment and the transport sector with 15%.

“Relocation of companies in Mexico is a reality. Although there is no official record, it is estimated that between 75 and 100 foreign companies will land in Mexico in 2022 and 99% of new production centers will be moved to 13 Mexican states, especially those that border the United States. The relevance and momentum of North America is so significant that even Chinese companies are investing in Mexico and producing goods that take advantage of T-MEC’s ​​benefits and incentives can use

Similarly, both countries have recently committed to investing in technology and infrastructure. The US government passed a law that includes $3.4 billion to complete 26 major construction and modernization projects at land ports of entry along the northern and southern borders. While Mexico has committed to invest $1.5 billion in border infrastructure between 2022 and 2024. It is expected that 14 projects will be developed by Mexico and six by the United States along their shared border and they will be completed by the end of 2023.

“Investments in physical and digital infrastructure will have a huge economic impact in both countries and the region,” he indicated in the document.

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The Cross-Border Market Between Mexico And The Us Requires Strategies That Increase Efficiency

Nation World News Desk
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