"I'm more excited about the supply chain enabler side of it, that's actually building some of that tech to help brokers get more efficient, help shippers get more efficient, and help carriers get more efficient."
U.S. companies shifting manufacturing to Mexico are facing unexpected roadblocks. Delays at the border due to a surge in migrants and other disruptions are creating a big challenge for the transportation of goods, showing that bringing production closer to home has its own risks.
The Issue:
Ferromex suspended operations due to migrants hitching rides, leading to delays in trucks and trains.
U.S. Customs closed rail and truck crossings at El Paso and Eagle Pass, Texas.
Additional issues with Mexico’s customs system and resumed secondary inspections exacerbate the problem.
What Experts are Saying:
Niels Larsen, a freight forwarder executive, emphasizes the human lives at risk amidst the logistics challenge.
Mike Burkhart from C.H. Robinson highlights the severity of recent bottlenecks.
Effects:
Companies are experiencing uncertainty and bottlenecks, mirroring global supply chain issues.
Last-minute border switches and poor infrastructure add to the woes, making the border crossing for goods increasingly difficult.
The border disruptions underline the growing complexity and unpredictability of global supply chains, even as companies seek to mitigate these issues by moving production closer to home.
“U.S.-Mexico total trade in goods and services surpassed $864 billion in 2022, an all-time high. Into 2023…Mexico has become the U.S.’s largest partner for total trade in goods.”👉https://t.co/47AUW8412mpic.twitter.com/vbVKZeTv6l
Explore the significant shift in global shipping as severe drought conditions in the Panama Canal compel dry bulk vessels, especially those carrying U.S. grain, to reroute through the Suez Canal.
While trade activity escalates in South America, influenced by diversified sourcing strategies, the Panama Canal continues to face drought-induced challenges.