Monday, June 17, 2024

Ryder bets on nearshoring with new cross-border logistics center

United States transportation and logistics company Ryder System has opened a new warehouse and cross-border dock facility in Laredo, Texas, in response to the nearshoring trend that has helped Mexico displace China as the top U.S. trade partner.

The 228,000-square-foot facility features 102 truck dock doors and space for 143 trailers, with easy interstate access in both directions. It is located within a six-mile radius of Ryder’s other operations in Laredo, to allow for overflow and pooling of labor and resources for added flexibility. 

Ryder Mexico manages more than 250,000 freight movements annually between Mexico and the U.S, and operates about 5 million square feet of warehouse and yard space in Mexico. (Ryder System)

Ryder executives say the new facility, located three miles from the World Trade Bridge, will help Ryder “take advantage of the growth in manufacturing while speeding products across the border.” 

The Miami-based logistics provider is also expanding a drayage yard just across the border in Nuevo Laredo, to facilitate the transfer of freight across the World Trade Bridge to U.S.-based drivers in Laredo. 

Ryder Mexico manages more than 250,000 freight movements annually between Mexico and the U.S, and operates about 5 million square feet of warehouse and yard space in Mexico.

According to Business Wire, the ports of Laredo and Nuevo Laredo now comprise the top inland transborder trade port between the United States and Mexico. 

The Laredo crossing, seen here in 2019, is now the busiest haulage crossing point between Mexico and the United States. (Gabriela Pérez Montiel/Cuartoscuro)

In 2023, more than 7.35 million commercial trucks crossed the U.S.-Mexico border. Truck border crossings between the United States and Mexico have risen more than 20% annually since the pandemic. 

Ricardo Alvarez, vice president of supply chain operations for Ryder Mexico, said in a press release that this is due to more businesses looking to nearshoring to diversify their supply chains and shorten lead times. 

The savings from manufacturing overseas can be offset by inventory sitting on ships or in seaports incurring storage fees,” he said. “With Mexico, you put what you need on a truck and it can be in a final-mile distribution center within days, not months.”

Mexico was not only the top exporter of goods to the United States last year, it is also its largest overall trade partner, with two-way trade totaling almost US $800 billion last year. Mexico, which exported goods worth US $ 475.6 billion to the United States last year, has gone from trailing China by over $80 billion in 2022 to beating it by close to $50 billion in 2023.

With reports from Freight Waves and Business Wire

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