US and Mexico Winning Globalisation?

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  • The era of globalisation could be slowing as companies continue to battle supply chain challenges.
  • Mexico, given its geographical position, has a unique opportunity to position itself as a toy hub in the world.
  • Fleetmaster Express recently received two Volvo VNR Electric Class 8 trucks in Texas as part of the company’s plan to transition from a diesel fleet to an electric one.

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. Fleetmaster Express received its first two Volvo VNR electric trucks; a Texas seaport announced a new ro-ro service from Asia, and a Houston multimodal park signed two tenants.

San Francisco-based Caravan is a vendor relationship platform that aims to streamline and optimise the way manufacturers and retailers engage with their vendors, says an article published in Freightwaves.

Reshoring and Nearshoring- Making Supply Chain Resilient?

Moving production closer to end-users in the United States — reshoring and nearshoring initiatives — could make supply chains more resilient by eliminating long shipping routes while also bringing more manufacturing jobs back to North America, said Tasneem Manjra, CEO and co-founder of Caravan.

“Reshoring is huge, and I’m hearing this trend a lot as we talk to potential clients,” Manjra told FreightWaves. “Companies want to make decisions about reshoring for a number of reasons- for political reasons, to make sure that the countries that they work with are sound in terms of human rights. They also don’t want to have the labour crisis with Uyghurs that China has, for example, or they want to make sure that they are closer to home for environmental purposes, creating a smaller carbon footprint.”

Mattel Nearshoring?

California-based toymaker Mattel, announced in March it was consolidating all North American manufacturing to its plant in Monterrey, Mexico.

Mattel said it was also investing $47 million to expand the Monterrey plant, where it employs nearly 3,500 workers, becoming the company’s largest manufacturing site. Mattel closed two of its factories in Asia in 2019, as well as plants in Montreal, Canada, and another in Tijuana, Mexico, in 2021, ahead of expansion of its Monterrey factory.

Intel Corp. Investing $20 billion Near Columbus, Ohio

California-based semiconductor manufacturer Intel Corp.’s announcement in January that it was investing $20 billion to build two chip factories near Columbus, Ohio, was a big recent win for the U.S. manufacturing sector.

The two Ohio plants are expected to create 3,000 direct jobs,  with production coming online at the end of 2025.

Kearney’s ninth-annual Reshoring Index

North America has had recent wins in regard to attracting manufacturing back, U.S. imports of manufacturing goods from low-cost Asian countries (LCCs) actually increased in 2021, according to Kearney’s ninth-annual Reshoring Index.

“American companies are getting more serious about adopting expanded versions of reshoring. Large portions of offshored manufacturing may soon be returning thanks to companies combining their nearshoring production to Mexico, Central America and even Canada, with manufacturing and assembly in the U.S.,” Kearney said.

Fleetmaster Express Receives First Volvo VNR Electric Trucks in Texas

Fleetmaster Express recently received two Volvo VNR Electric Class 8 trucks in Texas as part of the company’s plan to transition from a diesel fleet to an electric one. 

The two Volvo VNR Electrics are the first battery-electric Class 8 trucks in its fleet, and “deploying zero-tailpipe emission Volvo VNR Electrics is the next big step in our effort to create the most sustainable, energy-efficient fleet possible,” said Travis Smith, COO of Fleetmaster Express. 

Texas seaport announces new ro-ro service from Asia

Marine shipper Nippon Yusen Kabushiki Kaisha (NYK Line) made its initial call at Port Freeport, Texas, on May 16 to begin a regular service.

“Port Freeport’s proximity and efficiency to regional and global markets combined with room for expansion makes the port a strategic hub for vehicle imports and exports,” Phyllis Saathoff, Port Freeport’s executive director and CEO, said in a statement.

Houston Multimodal Park Signs 2 Tenants

The Greens Port Industrial Park along the Houston Ship Channel has two new tenants: JD Fields & Co. and ZL Chemicals.

Steve Pastor, NAI’s vice president of global supply chain and ports/rail logistics, said operators are looking for locations that help with efficiency. Pastor was part of the team that represented Watco in the transaction.

“Over the past 18 months, logistics tasks as simple as offloading cargo from ship to shore have become increasingly time-consuming and expensive at many ports,” Pastor said in a statement. “For this reason, Greens Port Industrial Park stands out as it offers direct access to [Port Houston], one of the nation’s most important ports.”

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Source: Freight Waves