Borderlands is a weekly roundup of developments in the world of trucking and cross-border trade between the United States and Mexico. This week: Port Laredo ranks #1 for US-Mexico agricultural trade; RJW Logistics to Open Shipping Hub Near Dallas; major logistics facility set up for Nuevo Laredo; and the Japanese manufacturer of air conditioners investing $300 million in Mexico.
Port Laredo No. 1 for US-Mexico agricultural trade, the report shows
Fueled by product shipments traveling by truck and rail, the Laredo Customs District served as the primary Port of Entry (POE) at the US-Mexico border for agricultural trade from January to October 2022.
The Customs District of Laredo handled 49% of US agricultural exports to Mexico and 52% of Mexican imports during the first 10 months of the year.
The findings are part of a recent Department of Agriculture report titled “US-Mexico Agricultural Trade Logistics Review.”
“Along the U.S.-Mexico border, the District of Laredo handles the majority of agricultural commerce in both directions,” the report said. “A mix of factors including established industrial supply chains, more commercial intersections with infrastructure for handling food and agricultural products, and the district’s proximity to larger population centers and key markets in both countries contribute to explain its role as a leader in cross-border trade.”
The Laredo Customs District includes nine points of entry throughout South Texas, including Del Rio, Eagle Pass, Laredo, Rio Grande City, Rome, Edinburgh Airport, Progreso, Valley International Airport in Harlingen and Brownsville.
Some of the best produce that passes through Laredo include avocados, tomatoes, lemons, limes, mangoes, broccoli, peppers, berries, lettuce, bulk grains and oilseeds, as well as frozen fruits and vegetables.
Excluding avocados, about 38% of Mexico’s fresh fruit and vegetable exports go through the Laredo crossings, along with 30% through the POEs in Nogales, Arizona, and 17% through the Otay Mesa crossing near San Diego, the report states.
US-Mexico trade in fresh fruits and vegetables and frozen products relies primarily on cross-border trucking, while trade in bulk grains and oilseeds relies primarily on rail and ocean freight through the Gulf of Mexico.
“In 2022 (January-October), 75 percent by volume and 86 percent by value of U.S. agricultural exports to Mexico were shipped overland across the U.S.-Mexico border,” the report said. “The ports of New Orleans, Houston-Galveston and Mobile accounted for the remaining 24% of volume and 13% of value. As far as northbound trade is concerned, Mexico’s exports to the United States are more oriented towards land shipments.”
The report indicated that Mexico is the largest customer for US agricultural exports and will continue to be so for the foreseeable future.
The United States had a 64% market share of all agricultural and related exports to Mexico in 2021; while 81% of Mexico’s total agricultural exports went to the United States.
“In 2022 YTD, the European Union, Canada, Brazil and Chile were distant competitors of the United States in their agricultural exports to Mexico,” the report said. “It is worth pointing out that while Mexico conducts robust and diverse trade with the world, no competitor can match the logistical advantages of its nearly 2,000-mile land border with multiple commercial POEs and the ability to land ocean-going vessels in bulk at relatively low rates. competitive”.
Commercial truck crossings in Laredo totaled 2.6 million vehicles in 2022; while the loaded railway containers were 293,083.
As of Friday, the freight truck market in Laredo was down about 2% in outbound cargo volume (OTVI.LRD) week over week, but was up 5% since Wednesday. On a year-over-year basis, Laredo’s outbound cargo volume decreased 3%.
Laredo’s outbound bid rejection rate (OTRI.LRD) for trucks declined over the past week and was just under 5% as of Friday, signaling that capacity has eased in the market.
RJW Logistics to open a shipping hub near Dallas, creating 225 jobs
Illinois-based RJW Logistics Group is expanding operations in Texas with a new 600,000-square-foot warehouse and adding 225 jobs, according to a news release.
The facility will be located in Mesquite, approximately 14 miles from downtown Dallas, and will serve as RJW’s logistics hub in the South for its consumer packaged goods customers.
“Establishing an operational hub in Dallas supports our ability to more effectively serve the needs of our existing customer base and integrate new CPG vendors into a growing region,” CEO Kevin Williamson said in a statement. .
The new logistics hub, scheduled for completion in March, will be located at Alcott Logistics Station, a 100-acre multi-building business park.
RJW Logistics Group is a logistics service provider specializing in LTL consolidation services designed for CPG suppliers to retailers. RJW provides asset-based transportation, logistics and storage solutions.
Important logistics facility set up for the border city of Nuevo Laredo
Palos Garza Group, based in Laredo, Texas, recently began construction on a new 155,000-square-foot logistics facility in Nuevo Laredo, Mexico, according to Mexico Industry.
It will be a bonded warehouse, which is a facility operated by a private company in a foreign nation under the regulatory supervision of that country’s customs agency. Its main advantage is the deferral of customs duty payments.
The facility will include 44 truck parking spaces and 56 trailer parking spaces and 206 tractor parking spaces.
The first phase of construction is expected to be completed by the end of the year.
Further phases of the project will include the construction of a three-story office and two temperature-controlled warehouses for refrigerated and perishable products. The construction of these is expected to be completed in 2025.
Nuevo Laredo is located directly across the US-Mexico border from Laredo.
The Palos Garza group is a logistics company that offers transport, supply chain, customs brokerage and warehousing services.
Japanese AC manufacturer investing $300 million in Mexico
Japan-based Daikin recently kicked off a $300 million project to build two new factories in San Luis Potosi, Mexico, according to Milenio.
Both factories will be located in the Millennium Industrial Park, creating 2,750 jobs. One plant will produce ductless mini-split air conditioners, while the other will produce commercial chillers, equipment that generates the chilled water used in the AC process.
With these two new factories, in addition to the current facilities, the company will consolidate the new Daikin Campus in Mexico.
Daikin will also use the facilities to establish an R&D center to boost its global supply chains.
Daikin is a global manufacturer of air conditioning and HVAC products headquartered in North America in Houston.
