Mexico’s booming exports expected to boost cross-border trade in 2024
With the global shift of supply chains to Mexico, cross-border operators predict that nearshoring will be a key driver for the North American freight economy in 2024. Nearshoring, the relocation of production and manufacturing operations to Mexico, has stimulated manufacturing growth as shippers seek closer, cost-effective supply chains favorable for business with the U.S. Major nearshoring projects, such as Tesla’s $5 billion automotive factory in Monterrey, are expected to significantly contribute to this growth.
Mexico replaced China as the top U.S. trading partner in 2023, reporting $656 billion in two-way trade from January through November, according to the U.S. Census Bureau. Trade professionals express optimism about U.S.-Mexico cross-border freight flows in 2024, emphasizing the expansion and consolidation of companies already engaged in bilateral trade and the opportunity to assist new entrants in setting up end-to-end logistics.
Despite excess trucking capacity in the U.S., cross-border lanes are expected to tighten due to the gradual exit of capacity from the market, reaching equilibrium in mid to late 2024. Increased demand is foreseen in sectors such as automotive, consumer packaged goods, and retail.
The nearshoring trend in Mexico is projected to continue, supported by ongoing infrastructure investments and an expected 10% annual growth in foreign direct investment, reaching approximately $60 billion by 2027. The forecast includes the entry of at least 495 new companies into Mexico between 2024 and 2025, indicating a promising long-term outlook for this trend.
Read full article: https://finance.yahoo.com/news/mexico-booming-exports-expected-boost-120000150.html?guccounter=1