Borderlands is a weekly rundown of developments on this planet of U.S.-Mexico cross-border trucking and commerce. This week: Port Laredo ranks No. 1 for U.S.-Mexico agricultural commerce; RJW Logistics to open transport hub close to Dallas; main logistics facility set for Nuevo Laredo; and Japanese air-con producer investing $300M in Mexico.
Port Laredo No. 1 for US-Mexico agricultural commerce, report reveals
Fueled by produce shipments touring by way of vehicles and rail, the Laredo customs district was the highest U.S.-Mexico border port of entry (POE) for agricultural commerce from January by means of October 2022.
The Laredo customs district dealt with 49% of U.S. agricultural exports to Mexico and 52% of imports from Mexico through the first 10 months of the yr.
The findings are a part of a current Division of Agriculture report titled “U.S.-Mexico Agricultural Trade Logistics Review.”
“Alongside the U.S.-Mexico border, the Laredo district handles most agricultural commerce in each instructions,” the report stated. “A mixture of components, together with established business provide chains, the next variety of business crossings with infrastructure to deal with meals and agricultural merchandise and the district’s proximity to the most important inhabitants facilities and key markets in each nations all assist to elucidate its lead position in cross-border commerce.”
The Laredo customs district encompasses 9 entry factors throughout South Texas, together with Del Rio, Eagle Move, Laredo, Rio Grande Metropolis, Roma, Edinburg Airport, Progreso, Valley Worldwide Airport in Harlingen and Brownsville.
A few of the high agricultural items passing by means of Laredo embrace avocados, tomatoes, lemons, limes, mangos, broccoli, peppers, berries, lettuce, bulk grains and oilseeds, in addition to frozen fruit and greens.
Excluding avocados, about 38% of Mexico’s contemporary fruit and vegetable exports move by means of Laredo crossings, together with 30% by means of the POEs in Nogales, Arizona, and 17% by means of the Otay Mesa crossing close to San Diego, the report stated.
U.S.-Mexico commerce of contemporary fruit and veggies and frozen commodities primarily depends upon cross-border trucking, whereas commerce of bulk grains and oilseeds primarily counts on rail and ocean freight by means of the Gulf of Mexico.
“In 2022 (January-October), 75% by quantity and 86% by worth of U.S. agricultural product exports to Mexico had been shipped overland by way of the U.S.-Mexico border,” the report stated. “Ports in New Orleans, Houston-Galveston, and Cellular accounted for the remaining 24% of quantity and 13% of worth. For northbound commerce, Mexico’s exports to the U.S. are extra closely oriented towards overland shipments.”
The report indicated that Mexico is the most important buyer for U.S. agricultural exports and can proceed to be within the close to future.
The U.S. held a 64% market share of all agricultural and associated exports to Mexico in 2021; whereas 81% of Mexico’s complete agricultural exports went to the US.
“In 2022 year-to-date, the European Union, Canada, Brazil, and Chile had been distant rivals to the U.S. of their agricultural exports to Mexico,” the report stated. “It deserves emphasizing that whereas Mexico conducts sturdy and various commerce with the world, no competitor can match logistical benefits of the almost 2,000-mile land border with a number of business POEs and the flexibility to land bulk merchandise by oceangoing vessel at comparatively aggressive charges.”
Business truck crossings in Laredo totaled 2.6 million automobiles in 2022; whereas loaded rail containers totaled 293,083.
As of Friday, the freight truck market in Laredo was down about 2% in outbound load quantity (OTVI.LRD) week over week, however up 5% since Wednesday. On a yr over yr foundation, Laredo’s outbound load quantity is down 3%.
Laredo’s outbound tender rejection (OTRI.LRD) charge for vehicles dropped during the last week and was just below 5% as of Friday, signaling that capability loosened available in the market.
RJW Logistics to open transport hub close to Dallas, creating 225 jobs
Illinois-based RJW Logistics Group is increasing operations into Texas with a brand new 600,000-square-foot warehouse and including 225 jobs, in keeping with a news release.
The power will likely be positioned in Mesquite, about 14 miles from downtown Dallas, and function RJW’s logistics hub within the South for its clients within the shopper packaged items area.
“Establishing an operational hub in Dallas helps our potential to extra successfully meet the wants of our current buyer base and onboard new CPG suppliers in a rising area,” CEO Kevin Williamson stated in a press release.
The brand new logistics hub, scheduled to be accomplished in March, will likely be positioned on the Alcott Logistics Station, a 100 acre multibuilding enterprise park.
RJW Logistics Group is a logistics supplier specializing in less-than-truckload consolidation providers designed for CPG suppliers to retailers. RJW offers asset-based transportation, logistics and warehousing options.
Main logistics facility set for border metropolis of Nuevo Laredo
The Laredo, Texas-based Palos Garza Group just lately started building of a brand new 155,000-square-foot logistics facility in Nuevo Laredo, Mexico, in keeping with Mexico Industry.
It will likely be a bonded warehouse, which is a facility operated by a non-public firm in a overseas nation beneath the regulatory supervision of that nation’s customs company. Its most important benefit is the deferment of customs obligation funds.
The power will embrace 44 truck bays and 56 parking areas for trailers and 206 parking areas for tractors.
The primary section of building is predicted to be accomplished by the top of the yr.
Further phases of the mission will embrace the development of a three-story workplace and two temperature-controlled warehouses for refrigerated and perishable merchandise. Building of these is scheduled to be accomplished in 2025.
Nuevo Laredo is positioned instantly throughout the U.S.-Mexico border from Laredo.
The Palos Garza Group is a logistics firm that gives providers in transportation, provide chain, customs brokering and warehousing.
Japanese AC producer investing $300M in Mexico
Japan-based Daikin just lately started a $300 million mission to assemble two new vegetation in San Luis Potosi, Mexico, in keeping with Milenio.
Each factories will likely be positioned within the Millennium Industrial Park, creating 2,750 jobs. One manufacturing facility will manufacture ductless mini-split air-con models, whereas the opposite will produce business chillers, gear that generates the chilled water used within the AC course of.
With these two new vegetation, along with present services, the corporate will consolidate the brand new Daikin Campus in Mexico.
Daikin may even use the services to create a analysis and growth hub aimed toward boosting its international provide chains.
Daikin is a worldwide producer of air-con and HVAC merchandise with North American headquarters in Houston.
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