Nearshoring to Mexico is the hottest trend in supply chains.

With Mexico now the top trading partner of the U.S., two-way trade hit a whopping $68.5 billion, according to data from the Census Bureau. In the first quarter of 2024 alone, trade has grown two percent between the U.S. and Mexico year-over-year (YoY).

This growth in shipping to and from Mexico is truly just the tip of the iceberg as companies invest in nearshoring strategies. According to Mexico’s Secretary of the Economy, there have been 378 foreign direct investments within the last year, and private sector businesses from the U.S. account for nearly 40 percent of it.

This surge is driven by companies moving parts or all their supply chains to Mexico, thanks to geopolitical tensions and disruptions like the COVID-19 pandemic. These have shone light on the gaps and difficulties faced by globally distributed supply chains. Companies seek more stability and budget-friendly solutions, finding hope in Mexico. While nearshoring to Mexico offers such benefits, there are common cross border shipping snags you should aim to avoid. 

Graphic with gray background and teal diagonal line on the bottom that reads "Mexico is now the top trading partner of the U.S. Geopolitical tensions and disruptions like the COVID-19 pandemic have driven the surge of companies moving parts or all of their supply chains to Mexico."

 

What are the Benefits of Nearshoring to Mexico?

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Location, Location, Location!

One of the largest benefits of nearshoring to Mexico is its location. Mexico’s proximity to the U.S. means faster shipping times and lower costs. It also offers more reliability, making supply chains less susceptible to disruptions.

Potential for Savings

Labor costs in Mexico are currently among the lowest in North America, even cheaper than in China. This can be a major draw for companies looking to reduce operational expenses. Shorter lead times also offer the potential for enhanced productivity and further cost savings.

Positive Economic Impact

Cutting costs and sped-up deliveries mean smoother operations, happier customers, and a boost in productivity. This isn’t just good for your business but beneficial for the Mexican economy, too. Businesses established in Mexico create new jobs and economic growth. The U.S. benefits, too, with stronger, more resilient supply chains that are less vulnerable to global disruptions.

But There Can Be Cross Border Shipping Snags

Many business owners don’t realize the complexities that come with shipping across the U.S.- Mexico border. Working with the right provider can make all the difference in whether you’ll face these common challenges.

Here are four major cross border shipping challenges you should be aware of with your nearshoring strategy.

Security Concerns

Graphic with gray background and teal diagonal line on the bottom that reads "Common Cross Border Shipping Snags. Security concerns, cargo theft, poor highway infrastructure, inadequate insurance coverage."

Cargo theft is a major concern in Mexico, with hijackings being the primary tactic. In April 2024, Mexico averaged about five cargo thefts per day, according to the National Association of Vehicle Tracking and Protection Companies. Unfortunately, that’s trending up compared to the previous year, that’s a 7.7 percent rise in activity. Most hijackings involve some type of violence and often involve food and beverage goods, household items, electronics, and auto parts.

Another security obstacle is Mexico’s poor highway infrastructure. The quality of Mexico’s roadways is significantly lower than in the U.S. According to the 2019 Global Competitiveness Report, Mexico ranks 49th out of 141 economies in its road quality. In comparison, the U.S. ranks 17th.  Mexico’s lacking infrastructure increases the potential risk of delays and accidents, as well as cargo theft with any truck breakdowns.

Despite all this, Mexican carriers are not required by law to carry cargo insurance. Many choose to opt out of having it and this often results in inadequate coverage of freight. Because of this, it’s recommended to look into securing your own extra coverage and aim to work with carriers that are certified with the Customs Trade Partnership Against Terrorism (CTPAT).   

Lost in Translation?

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When working with those in other countries, it’s important to know how they operate. This includes Mexico. Understanding the language and business culture is essential to achieving success.

This fact may be well-known, but not everyone in Mexico speaks English! Spanish is the official language, spoken by about 90 percent of its people. According to a 2023 report, only five percent of Mexicans speak English. While larger businesses may have more bilingual employees on hand, dealing with smaller ones can be challenging if you do not have someone who speaks Spanish. Also, much technical or industry-specific jargon doesn’t often translate accurately. Without bilingual representatives available, it can be easy to have miscommunication issues.

Unlike the U.S., where we often like to get straight to business, Mexicans often prioritize building personal relationships before even discussing any professional matters. Due to this, negotiations can often be more indirect. Working with Mexican businesses means you’ll need to invest time in building strong relationships to foster trust and rapport with your contacts.

Facing Cross Border Complexities

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Getting your freight across the U.S.–Mexico border can be complex. Many parties are involved, including several carriers and the customs broker. There are also several touchpoints during the shipping process, and disruption can happen at any of them.

Another hurdle shippers must deal with in cross border shipping is the lengthy transit time. Due to inspections, typical wait times for trucks crossing the border, especially from Mexico to the U.S., can range anywhere from three to 10 hours on certain days. Choosing the right crossing point can greatly affect the transit time vastly, and there are 48 points to consider!

Paperwork Troubles

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Freight most often gets detained at the border for incomplete documentation.

Shippers are required to fill out many, often repetitive documents. It’s common for this paperwork to get misplaced or for shippers to not even be aware of the exact procedures required by authorities. When any of this important paperwork is left blank or filled out incorrectly, the carrier gets detained at the border until it is resolved. This can add extra days or costs to your shipment.

Ensure all necessary documents are in order, including:

Having these documents in both Spanish and English can prevent delays and misunderstandings.

Trinity Logistics: The Perfect Partner for Your Nearshoring Strategy

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Navigating the complexities of shipping to and from Mexico can be overwhelming! One simple mistake is all it takes to cause delays and additional costs. That’s where finding a reliable logistics provider comes in.

Sure, perhaps you can do it all on your own, but trust us, it’s easier with help. You can outright avoid these four common mistakes when shipping to and from Mexico when you’ve chosen to work with a reputable logistics provider like Trinity Logistics.

We’ve been navigating the waters of cross border shipping for over 45 years, so we understand all the nuances. Our bilingual Team Members and Authorized Agents (some even based in Mexico) get the business culture and fluently speak the language, so there won’t be any miscommunication concerns. Not to mention, our People-Centric service always puts relationships first, regardless of nationality.

Meet one of our Authorized Freight Agents, Luis Rodriguez.
Are you a Freight Agent? Join Luis and become an Authorized Agent with Trinity!

We’re customs process experts and have trusted carrier relationships ready to roll. Whether it’s Laredo, El Paso, San Diego, or another major U.S.-Mexico border, we have a variety of transportation modes available.

If nearshoring is part of your supply chain strategy but you’re concerned about shipping to and from Mexico, worry no longer. Instead, consider Trinity Logistics as your cross border copilot. We’ll handle the logistics so you can meet your business goals.

Get a FREE Quote Discover Effortless Cross Border Shipping

Every business has to start somewhere, that first shipment of products leaves your storefront, factory, or warehouse and heads off to its next stop where consumers will purchase it for their home or business. Arranging shipments within the state, region, or country can be relatively straightforward, as long as there are no additional stops or unusual requirements involved. As business and demand grows, it comes time to move your products across borders, and that’s when things start to seem a little daunting. If your business ships internationally on a regular basis or you are looking to expand your business overseas, you’re in the right place. Whether it’s by ground, air, or ocean, check out these tips on international shipping logistics.

What are your international shipping requirements?

Do you need an expedited air shipment?

Do you have multiple containers that need to go halfway around the world?

Do you have a full container load or less than container load?

Does your shipment require door to door or port to port service?

It’s a lot to think about.

You could coordinate your international shipments yourself, or you could work with a third-party logistics company who can handle the arrangement of your international shipping logistics on your behalf. Here’s some things that we can do for you:

What information do we need about your international shipment to get a quote?

Have an international shipment that you do regularly or that is upcoming and want to get a quote? Here’s some of the information that we need to get you an accurate quote:

When you request an international quote, we have a form that you can fill out to give us the necessary information about your shipment. As international quotes are a little more intricate than a U.S.-only truckload, less-than-truckload (LTL), or intermodal shipments, an international quote takes a little longer.

Not shipping overseas? We can help you with shipping to Mexico and Canada

Whether you need to ship truckload, intermodal, or LTL across the border, we can help navigate the complications of shipping from Canada and Mexico to the U.S. or vice versa.

Read our blog about the basics of international truckload shipping to and from Mexico for more information.

Have questions or need a quote?

Have more questions about international shipping logistics or want to get a quote? Fill out our form and our team will get back to you.

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