FourKites: Nearshoring Shifts Trade Lanes from China to Mexico

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn

🇲🇽 FourKites: Nearshoring Shifts Trade Lanes from China to Mexico.

Nearshoring, driven by trade and political tensions with China, is gaining momentum as U.S. companies invest in minimizing supply chain disruption. Shipment volumes from Mexico to the U.S. have increased by 20% while dwell times have decreased by 25% compared to two years ago, particularly in the food & beverage and automotive sectors. While the move towards nearshoring is a long-term investment approach, it offers advantages in terms of infrastructure, talent, freight costs, and raw material supplier locations. The trend could also benefit railroads connecting Canada, the U.S., and Mexico, such as Canadian Pacific Kansas City (CPKC), although the full impact may take time due to necessary investments and infrastructure improvements.

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Jennifer Joslyn
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