US-Mexico Trade Hits $74B in August; Laredo Port Tops Again; Imperative Logistics Acquires Jamco; Gebruder Weiss Partners with Mexican Freight Board Cargado
Borderlands reports on the latest developments in US-Mexico cross-border trucking and trade weekly. This week: US-Mexico trade reached $74 billion in August, with Laredo Port regaining first place; Imperative Logistics Group acquires freight forwarder Jamco; Gebruder Weiss collaborates with Mexican freight platform Cargado; Avery Dennison opens a $100 million facility in Querétaro, Mexico.
US-Mexico trade reached $74 billion in August, Laredo Port regains first place
According to the latest data from the Census Bureau, US-Mexico trade totaled $73.77 billion in August this year, a 4% increase compared to the same period last year.
This is already the eighth consecutive month and the eighteenth out of the past nineteen months that Mexico has been America’s largest trading partner.
In August, Canada ranked second with total trade volume reaching $63 billion, while China came in third at $51.8 billion.
For the first eight months of this year, US-Mexico trade totaled $560 billion. Trade with Canada reached $509 billion, and trade with China was $373 billion.
Data from the Census Bureau shows that the top three products exported from Mexico to the US in August were computers ($4.72 billion), passenger cars ($4 billion), and automotive parts ($3.3 billion).
The main goods imported into Mexico from the US in August included gasoline and other fuels ($3 billion), automotive parts ($1.74 billion), and computer components ($17.3 million).
Jordan Dewart, President of Redwood Mexico, the cross-border division of fourth-party logistics provider Redwood Logistics based in Chicago, stated that nearshoring manufacturing to Mexico continues to drive growth in cross-border trade.
“We track foreign direct investment (FDI) for nearshoring and continue to see more new players investing in Mexico and existing expansions,” Dewart said in an email to FreightWaves. “Some companies are waiting on the results of the upcoming US election, particularly Tesla. But they’re not the only electric vehicle manufacturers in Mexico as we’ve seen more announcements from BYD and others about investments in Mexico. Much of this investment is coming from Asia, especially China, with Mexican ports on the west coast seeing year-over-year increases in throughput as stated in our Redwood Cross Border Index released in September.”
Dewart noted that demand for cross-border trucking capacity continues to rise but faces challenges due to a shortage of drivers and cargo theft.
“Our volumes are significantly up year over year, which could be attributed to our diverse client base including healthcare, food & beverage, automotive, retail, and manufacturing,” Dewart said. “Due to increased demand and driver shortages, trucking rates in Mexico have continued to rise. Finding reliable drivers willing to drive trucks in Mexico is becoming increasingly difficult. Much of this is due to the increase in theft and violence on Mexican highways. The situation has really gotten out of control, with many companies now only driving during daytime hours, which slows down transportation and isn’t optimal for efficiency.”
According to analysis by WorldCity based on Census Bureau data, Laredo Port in Texas regained its position as the top trading gateway among 450 airports, seaports, and border checkpoints nationwide in August. The Port of Los Angeles held first place in July.
In August, Laredo’s total trade volume reached $30.7 billion, slightly higher than the Port of Los Angeles’ $29.5 billion during the same period. Chicago O’Hare International Airport ranked third with $25.3 billion.
Imperative Logistics Group Acquires Freight Forwarder Jamco
Imperative Logistics Group announced that it has acquired Jamco, a US-Mexico cross-border logistics provider headquartered in Laredo, Texas.
The officials at Imperative Logistics Group, based in Portland, Oregon, stated that this acquisition aligns with the company’s growth strategy.
“Jamco’s capabilities perfectly complement our commitment to providing comprehensive and highly specialized advanced logistics solutions,” said Dante Fornari, CEO of Imperative Logistics Group, in a press release. “Jamco will significantly enhance our service offerings by adding highly differentiated and integrated cross-border trade and logistics services. We’ll better support existing customers manufacturing in Mexico while offering Jamco’s clients our fast critical transportation and global freight capabilities.”
The terms of the acquisition were not disclosed.
Jamco, headquartered in Laredo, Texas, provides customs brokerage, trade advisory, material management, and advanced customer information systems.
Gebruder Weiss Collaborates with Mexican Freight Platform Cargado
Gebruder Weiss recently announced a partnership with Cargado, an invitation-only US-Mexico cross-border freight platform.
“Gebruder Weiss continues to elevate its global customer service, and we are thrilled to be one of the companies invited to join the Cargado platform,” said Kevin Sendre, Director of Full Truckload for Gebruder Weiss North America, in a statement. “Cargado’s vision is to make cross-border freight interconnected, reliable, and transparent, which aligns perfectly with our philosophy, and we look forward to working closely with their team.”
According to the press release, Gebrüder Weiss has expanded its operations along the US-Mexico border in recent years by establishing two new facilities in Texas—one in El Paso and another in Laredo. The agreement with Cargado further extends the company’s cross-border logistics growth.
“In recent years, there has been a sharp rise in demand for nearshoring, leading to rapid increases in freight between the US and Mexico,” said Matt Silver, CEO and co-founder of Cargado, in a statement. “Gebruder Weiss is a respected leader in the industry, and we are delighted to welcome them to our platform.”
Avery Dennison Opens $100 Million Facility in Querétaro, Mexico
Avery Dennison has opened a facility in Querétaro, Mexico, for producing radio-frequency identification (RFID) tags and digital ID technologies.
According to the company’s press release, the Querétaro plant is Avery Dennison’s largest RFID factory globally.
The facility will create 938 direct jobs.
The factory will manufacture RFID solutions to promote the adoption of digital ID technology across industries including apparel, food, healthcare, logistics, and general retail.
This $100 million investment in a 269,000 square foot plant aligns with Avery Dennison’s global and regional ambitions, according to Francisco Melo, President of Avery Dennison Solutions Group.
“Querétaro State and the city of Querétaro are focused on sustainability while benefiting from an excellent location and a skilled workforce,” Melo said in a statement. “We continue to see growing demand for our RFID and digital ID solutions across the Americas.”
Avery Dennison, headquartered in Mentor, Ohio, is a multinational manufacturer and distributor of pressure-sensitive materials, apparel labels and tags, RFID inlays, and specialized medical products.
Source: FreightWaves
