What shippers need to know to succeed in Mexico in 2024

According to a recent report from Morgan Stanley, Mexican manufacturing exports are anticipated to increase from $455 billion today to $609 billion over the next several years.  

As nearshoring increases, industry experts say that freight capacity, infrastructure and the strong peso are disruptions that shippers should be preparing for going into 2024 – and beyond. 

• As more manufacturing facilities are built in Mexico, truck and driver capacity will get tighter. Consider multiple modes and work with carriers that are working to increase capacity options. 
• Mexico’s infrastructure spend doesn’t align with the speed of growth in the region. In the meantime, be where infrastructure is present or planned to be built – and advocate for needs. 
• The increased value of the peso could lead to friction between shippers and Mexican carriers. Be prepared to solution with your carriers, and plan for budget increases to support higher costs. 

As nearshoring increases, industry experts say that freight capacity, infrastructure and the strong peso are disruptions that shippers should be preparing for going into 2024 – and beyond. 

What is Schneider doing to help shippers succeed? 

• Working to grow our dray capacity options for intermodal. 
• Developing strategic relationships to grow with carriers. 
• Offering relief with the FX exchange rate.

Through these efforts we’ve been able to increase Mexico driver capacity and offer our customers creative capacity solutions to solve their transportation challenges.  

• Evaluate your network and locations to see where it makes sense to have a nearshoring location or warehouse. Schneider makes this easy by providing network engineering and consulting services to help organizations visualize, design, optimize and implement resilient supply chains.
• Plan ahead for transloading and warehousing needs. Schneider’s Laredo cross-border transloading facility makes taking your freight across the U.S. and Mexico border seamless, allowing you to leverage our customs brokerage, distribution and cross-border expertise to keep your freight moving. 
• Determine the best mix of capacity options to increase cross-border supply chain resiliency. Schneider offers customers many options through Schneider Capacity Stacking^SM. Stack solutions by utilizing multiple modes, adding dedicated solutions or dynamic pricing solutions. We look at your network and capacity needs to help you optimize your organization’s stack. 
• Work with transportation providers that are experienced in cross-border transportation. Schneider has more than 30 years of experience in the Mexico market and transporting freight across the border.

If you would like to discuss your Mexico cross-border transportation strategy for 2024 and beyond, please contact us.