Nearshoring: What It Means for U.S.-Mexico Cross Border Logistics

Nearshoring operations have seen a significant spike, rippling through the supply chain and bringing bottlenecks from the pandemic years back into play. As large international corporations relocate their operations to Mexico’s border regions, cross-border logistics are continuing to hit the front page.

As a result, ocean freight shipping will shift to OTR (Over-The-Road), potentially leaving big impacts on ports and cross-docking facilities but improving downtimes for moving goods. Instead of taking 6 weeks on the water, cross-country freight can now move in 10-14 days or less with OTR transport. As such, demand for warehousing space, manufacturing plants, and logistics management providers has exploded along the U.S.-Mexico divide.

Perhaps the most abundant challenge faced by shippers in this landscape is the hunt for reliable carriers with cross border capabilities who have available capacity. Due to regulations, there is not currently a large network of carriers who cross the U.S.-Mexico border to draw from, nor is there carrier loadboard for Mexico based freight that brokers can easily access. On top of that, ELDs (Electronic Logging Devices) are not required in Mexico. Drivers there often use old-fashioned paper or digital logbooks instead, making it difficult to properly manage transportation without the real-time visibility offered by ELDs and integrated third-party tracking software. Messaging drivers for updates is often routed through WhatsApp or similar applications, increasing the chance for errors, theft, or gaps in communication during complicated freight moves. These hurdles emphasize the importance of cultivating and maintaining strong relationships with Latin American carriers with good safety records and a proven high level of service standard.

All in all, navigating the complexities of U.S.-Mexico cross border logistics can be a tough egg to crack. Here at Logic-ology, we have the proven formulas and industry expertise to help your business overcome the challenges of international freight moves. As a full-service centralized Supply Chain Provider, we work with over 3,000 carrier partners across the globe to fit both the immediate and future requirements of our clients. Contact us today and let’s get started!