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Mexico became the top trade partner of the U.S. for the very first time in 2019. Though the title went back to China for 2020, Mexico took the crown again throughout the majority of last year. Adding fuel to the fire that is growing trade throughout North America is the United States-Mexico-Canada Agreement (USMCA) which went into effect in July 2020. The strength of trade between the three nations may become even stronger due to the challenges seen during the pandemic.

For decades, manufacturing had moved overseas to China and other Asian countries. However, the complexity of operating a supply chain so reliant upon overseas operations has weighed heavily on many businesses these past two years. Even before the pandemic though, North America began seeing many operations move back through the practice of nearshoring.

In 2017, 15% of our respondents said they would ship freight to or from Mexico in 2018. When we asked the same question in our 7th annual State of the North American Supply Chain Survey in 2021, we saw a 20 percentage point increase for 2022 (35%). Similar results were found when we asked the same question regarding shipments to or from Canada in 2017 (33%) and 2021 (48%).

It’s anticipated that the USMCA will continue to incentivize companies to invest in manufacturing and assembly operations in North America. While supply chains may still rely on certain components and natural resources from abroad, more shippers may find themselves relying heavily on cross-border transportation services.

Watch the video below to learn how Averitt's Cross-Border services can help you streamline your supply chain needs to and from Mexico!

 

Still, issues exist across the borders in Canada and Mexico, including driver shortages of their own. To that point, it’s important that shippers partner with service providers that have a good track record with cross-border transportation and understand the ins and outs of the USMCA regulations and paperwork.

Averitt, for example, has a strong network of carrier partners in Canada and Mexico that are backed by an in-house team of customs clearance and USMCA experts. Additionally, with cross-border distribution centers in Laredo, Chicago and Richmond, Averitt is helping companies throughout the South keep their cross-border supply chains moving seamlessly.


This article is part of a series taken from our Annual Shipper Survey Results Issue of Point to Point. You can click here to down the issue in its entirety for free!

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