FourKites reveals promising trends in US-Mexico trade

Shipping Cargo Cranes along the shore of Manzanillo, Mexico.

FourKites, a leading supply chain visibility platform, has unveiled new data showcasing positive developments in shipments between Mexico and the US.

The number of delayed shipments for Mexico exports, tracked by the FourKites platform, has decreased 25 per cent year-over-year, while the volume from Mexico to the US has increased by 20 per cent year-over-year.

Food and Beverage (F&B) and automotive shipments tracked by FourKites from Mexico to the US have increased 36 per cent and 14 per cent, respectively, from 1 May 2022 to 2023.

However, in recent months, over-the-road delays for F&B shipments have spiked 15 per cent above 2022 levels.

In 2022, 35 per cent of F&B shipments were delayed on average, and for the same period 2023, delays have been slightly above 40 per cent.

Glenn Koepke, Vice President and General Manager, Network Collaboration, FourKites, stated: “Companies are continuing to invest in nearshoring and taking a long-term investment approach to it, as moving thousands of global suppliers into Mexico isn’t feasible in the short term.

“When deciding whether to invest more in Mexico or any other region, companies will evaluate the critical products to manufacturing, scarcity, labour availability and talent.

“While manufacturing and sourcing from Mexico has been an option for companies for decades, evolving global competition and factors such as infrastructure, talent, duties, freight costs and raw material supplier locations continually influence the decision of where to produce products.”

READ: Contecon Manzanillo becomes Mexico’s first carbon neutral port

Koepke also commented on the impact that recent trade deals had on trade across North America: “Rail is the backbone of many agricultural, chemical, automotive, and paper products in the US.

“With only seven class-one railroad providers, investments and infrastructure improvements often take time to really see the entire network improvement for capacity and throughput.”

This report comes less than two months after CN, Union Pacific Railroad, and GMXT announced the launch of the Falcon Premium intermodal service connecting Mexico, the US, and Canada.

More recently, Canadian Pacific Kansas City (CPKC) launched an intermodal service offering the first truck-competitive, single-line rail service option between the Midwest and Mexico.

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