Plus: TGS Transportation shuts down, DSV taps brakes on nearshoring, construction spending slips again, and more in today's FreightCaviar newsletter.
DSV is pausing some border investments due to tariffs but advancing its 900,000-square-foot Laredo hub, as experts highlight Mexico and Latin America’s resilience in global trade growth.
U.S. construction spending fell 0.4% in June, extending a decline that threatens freight demand, as fewer housing projects reduce shipments of building materials, appliances, and home goods.
DSV is pausing some border investments due to tariffs but advancing its 900,000-square-foot Laredo hub, as experts highlight Mexico and Latin America’s resilience in global trade growth.
DSV is navigating a complex landscape in North American trade. While CEO Jens H. Lund says U.S. tariffs have cooled cross-border growth, the company is pressing ahead with the construction of a 900,000-square-foot logistics hub in Laredo, Texas, featured in our July 23 newsletter. At the same time, trade experts point to Mexico and the broader Latin American region as resilient economies poised to attract more global investment.
DSV confirmed it has paused some of its planned U.S.–Mexico border investments, citing tariff-related uncertainty.
“The growth has gone out of it,” said Jens H. Lund, DSV’s CEO.
The Trump administration last week extended a 25% tariff on Mexican goods for 90 days. The move has added uncertainty for logistics operators heavily invested in cross-border trade infrastructure.
Despite the tariff environment, DSV is moving forward with a major expansion in Laredo that signals long-term confidence in U.S.–Mexico trade flows.
“This property serves to solidify DSV’s position at the U.S.-Mexico border and reinforces its commitment to cross-border logistics and warehousing solutions,” the company said in a statement.
As we reported in our July 23 feature, Laredo is increasingly viewed as the hub of the nearshoring boom, where manufacturers expanding in Mexico are driving new freight flows into the U.S.
Adriana Pulley
While tariff policies pose near-term headwinds, economists see strong fundamentals across Latin America.
“First and foremost, things that investors are watching right now is the extraordinary resilience of Latin American economies,” said Ernesto Revilla, chief economist for Latin America at Citi.
Highlights from a recent Atlantic Council webinar include:
“There’s a global transition today to a low carbon economy, and this has placed Latin America in the spotlight,” said Luz Maria de la Mora of the United Nations Conference on Trade and Development.
DSV’s dual strategy reflects the current cross-border trade environment. Tariffs and policy uncertainty are slowing near-term investments, but major projects like the Laredo hub demonstrate confidence in Mexico’s continued rise as the United States’ largest trading partner. Meanwhile, broader Latin American growth trends, from critical minerals to nearshoring production, suggest the region’s role in global trade will continue to expand.
Source: WSJ | FreightWaves
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The U.S. and EU struck a deal to impose 15% tariffs on most goods.
Tariff pressure shifts freight to major U.S. ports as importers turn to supply chain finance. Smaller ports and key sectors face mounting strain.
U.S.-Mexico trade tensions escalate over tomatoes and cargo aviation
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