No place like home: Nearshoring brings supply chain closer to businesses
Cross-Border services become integral in global trade
Are far-flung supply chains ready to move a little closer to home? A broad global trade shift may be underway.
Sweeping 2020 health concerns, diplomatic tensions with China and a strain on raw materials caused by Russia’s invasion of Ukraine have supply chain and logistics leaders rethinking offshoring.
Enter nearshoring, or moving a business operation to a nearby country with solid diplomatic relations (also called friendshoring). This supply chain shift is becoming more common as companies worldwide seek hubs closer to the United States.
Advantages to outsourcing to Mexico
Mexico is a growing nearshoring destination because of its manufacturing-based economy, free-trade agreements, labor supply and natural resources.
Mexico and the United States traditionally have been strong trade partners. Total Quality Logistics (TQL) moved more than 23,000 shipments in and out of Mexico and border towns in 2022.
The relationship between the two countries amplifies the ease of nearshoring and bolsters Mexico’s strong track record of manufacturing in key sectors. Mexico’s top exports are vehicles, electrical machinery equipment, machinery including computers and mineral fuels including oil.
About 70% of Mexican freight exports are tendered by U.S.-based companies, making Mexico’s close proximity to the United States another benefit. The short distance ensures decreased transportation lead times and carbon impact as well as increased modal options.
TQL cross-border services provide solutions
TQL is well-positioned for the trade shift macro trend and supports new capacity through our Mexico Cross-Border services.
Our comprehensive capacity includes truckload, less than truckload, air and ocean. As leaders in dry van, flat bed and refrigerated shipping, TQL has the equipment and capacity required for cross-border transportation.
“Nearshoring to Mexico is a topic that many shippers we work with are executing or seriously contemplating,” said TQL President Kerry Byrne. “We’re here as a partner to advise on intra-Mexico and cross-border transportation management – and we have a dedicated team that knows the ins-and-outs of Mexican freight flows.”
Our Mexico Cross-Border team has 80-plus dedicated people, including bilingual experts, who handle the complexities of cross-border Mexico shipments and ensure safe and prompt delivery through U.S. and Mexico customs.
The team is in constant communication with all players in the supply chain: shippers, receivers, carriers, cross dock facilities, transfer carriers and customs.
Mexico Cross-Border leverages TQL’s expansive network to select from the best North American carriers to move freight in and out of Mexico 24/7/365, all while providing the world-class customer service we have been known for since 1997.
By understanding each account intimately, we work hard to minimize delays, disruptions and costs while keeping freight protected with insurance and covert tracking devices. Mexico Cross-Border supports companies’ growth by being nimble and efficient amid rare supply chain restructuring.
To learn more about TQL’s Mexico Cross-Border solutions, visit tql.com/mexico-crossborder or speak to an expert directly by contacting our Mexico Team at (800) 580-3101 x57730 or Mexico@Tql.com.