This is a First of 2 entries about Mexico’s situation related to the Transportation Services
Mexico is one of the most important markets in Latin America due to its size, development and total demand with foreign direct investments for Original Equipment Manufacturers (OEM) and other big manufacturing companies arriving every year.
In 2016, imports into Mexico from the United States accounted for 46.5% of Mexico’s trade while 81% of Mexico’s exports where to the United States.
Uncertainty over NAFTA and news report listing Mexico as one of the most violent countries of 2017 may cause you to reconsider entering the international transportation market at this time. However, despise the unsavory news headlines, trade and commerce with Mexico continues to be a growing untapped market for those in the logistics business. In fact, Mexico Insight’ statistics continue to show that the country’s levels of general crime and violence continue to be lower than those of most large U.S. cities.
Manufacturers’ needs to keep products in motion is a business opportunity you should not pass on. Having a good market entry strategy, becoming familiar with Mexico’s different geographic markets and their risks can give you an advantage over providers who let themselves be influenced by information that has been blown out of proportion. While most violence in Mexico, is currently drug-related, the top incidents affecting the private sector are: virtual extortion, theft, contamination of the supply chain, facilities intrusion, protests, blockades.
Understanding each of these risks and taking measures to mitigate their impact is key to providing reliable transportation services while in Mexico.
Just like in the U.S., carriers should exercise precautions in their route selection. It is important to take into consideration the desirability and re-sale value of the freight being transported. Knowing exactly what you are transporting will help you determine the best route, if additional hours should be considered in the transit time to account for daylight travel only, and if security escorts are recommended. Security solutions such as GPS and tracking systems are popular tools to reduce cargo theft, track assets, and aid rapid response to threats. Having visibility of the shipment throughout the supply chain is essential.
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