Borderlands is a weekly review of developments in U.S.-Mexico cross-border trucking and trade. This week’s highlights include the impact of nearshoring on cross-border trucking, the closure of Careismatic Brands’ Dallas distribution hub, ITS Logistics’ new office in Fort Worth, and the construction of a $240 million tire plant in Mexico.
Nearshoring to Continue Boosting Cross-Border Trucking in 2024
The trend of nearshoring—relocating supply chains closer to the U.S.—is expected to continue driving growth in cross-border trucking between the U.S. and Mexico throughout 2024. Uber Freight’s recent “Q2 Market Update & Outlook Report” underscores this trend, highlighting increased trade flows and the establishment of new factories and warehouses in Mexico. According to Ben Enriquez, Uber Freight’s head of Mexico logistics and customs, many companies are in the process of setting up operations in Mexico, indicating a lasting impact on cross-border capacity.
In 2023, Mexico surpassed China to become the U.S.’s top trading partner, with trade between the two nations totaling $798 billion. The first quarter of 2024 saw a 1.7% year-over-year increase in trade, totaling $200.1 billion. Despite the positive outlook, challenges such as driver shortages and cargo theft in Mexico persist. The trucking industry in Mexico currently has around 56,000 unfilled driver positions, with many drivers moving to the U.S. for better pay. Cargo theft, often involving violent hijackings, remains a significant issue.
Careismatic Brands to Close Two Dallas Distribution Hubs, Lay Off 404 Employees
Careismatic Brands, a major medical apparel and school uniform manufacturer, is permanently closing two distribution centers in Dallas, resulting in 404 layoffs. The closures are attributed to changing business needs. The distribution hubs, which consolidated Careismatic’s shipping operations for the U.S., Mexico, parts of Canada, and Latin America, were only opened a year ago. The California-based company employs over 700 people across six countries.
ITS Logistics to Open Office in Fort Worth
ITS Logistics is expanding with a new office in Fort Worth, Texas, dedicated to its ContainerAI management platform. The Fort Worth City Council has approved a three-year grant of up to $847,500 for ITS Logistics, which in return will lease at least 15,000 square feet of office space and invest $1 million in the facility. The company is expected to create 250 to 339 full-time jobs by the end of 2027. ContainerAI is an AI-driven platform providing container management solutions across North America.
Aztema Begins Construction of $240M Tire Plant in Mexico
Aztema Rubber and Tire Manufacturing has commenced construction of a $240 million tire manufacturing plant in Irapuato, Mexico. The facility, a joint venture between China-based Sailun Tire and Mexico-based Tire Direct, will create 1,400 jobs and have an annual production capacity of 6 million semi-steel radial tires. Construction is expected to be completed by the end of the year. Sailun Tire manufactures tires for passenger and commercial vehicles, while Tire Direct is one of Mexico’s largest tire distributors.
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