NEARSHORING [ INSIGHT ]
by Lance Dixon Senior Vice President of Mexico and Canada Divisions, Werner dixon@werner.com | 800-228-2240
How to Prepare for Nearshoring Nearshoring is experiencing a resurgence, mainly due to lessons learned from supply chain shortages and delays during the pandemic. Shippers realize there is much to gain from nearshoring, including reduced costs, shorter wait times and increased efficiencies. For the United States, Mexico
Explore new ways to transport. If there’s one thing business owners need to keep in mind, it’s capacity restraints. Historically, the United States has always imported more from Mexico than it exports. The crossing at Laredo, Texas, which is one of the busiest ports of entry along the border, sees nearly twice as many imports as exports. This divide will only grow wider as more manufacturing shifts to Mexico. For business owners, it means increased competition to nd Mexican shippers to import goods into Mexico since most of the money can be found sending freight northbound. It also means pricing will grow more competitive. These changes aren’t inherently bad; it’s just part of doing business. But it does mean companies need to start working to create a foothold and build up those carrier relationships to maintain a steady ow of freight to and from the border. Also consider transportation mode. With so much competition entering the market, weighing alternate shipping methods like LTL and intermodal, will provide the largest range of options. Companies can reap the bene ts of nearshoring by ensuring compliance with international regulations and investing in alternate shipping methods. Embracing this approach positions your organization for global success and opens new doors for growth and expansion. n
massive delays or even refusal of your cargo. These documents vary by country, industry, and transportation method. Build relationships. Working with international organizations has its share of language and cultural barriers. Despite the digital nature of the modern world, business still relies heavily on human connection, and how people connect is very dependent on culture. Establishing connections with key players in your target markets can go a long way toward fostering your success. You need a vendor with connections and assets extending beyond the border to get cargo to its nal destination. Ask vendors what businesses they have relationships with in the country you’re shipping to and how communications will continue as cargo changes hands. Make sure any carrier you work with on cross-border freight has alliances with quality foreign carriers and fosters strong relationships with its teams, treating them as an extension of its own. International freight involves multiple moving parts, and the best experience will feel seamless no matter where your freight is.
has recently been the main target for nearshoring operations, surpassing China as the largest importer to the United States in 2023. With the recent election results, we expect increased demand for nearshoring in the short term as shippers look to move freight prior to expected tariffs. All these signs paint a positive picture of nearshoring’s future, but the bene ts will take time to materialize and companies will need to adapt to realize them fully. Here’s what you can do to prepare your organization for nearshoring. Start learning customs laws and documentation. What items can cross international borders and how they must be shipped varies from country to country. The customs laws that apply to China may not apply to Mexico or Canada. These laws are often complex and require intimate knowledge of the industry, which is why many shippers opt to work with 3PLs. Documentation is another learning curve to overcome. A missing paper or a form that’s lled out incorrectly can cause
84 Inbound Logistics • January 2025
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