When you hear outsource do you automatically assume someplace in Asia? What about when you hear nearshore? Does Mexico come to mind? Well for more and more companies, nearshoring their production to Mexico is a competitive option.
It’s true that Mexico’s transportation regulations can be difficult to navigate and that high risk situations are common. From law enforcement officers who can legally open your cargo at any point during transit to fake checkpoints throughout the country, freight can be vulnerable to both theft and damage. With these factors to consider, you may wonder why anyone chooses to nearshore their manufacturing to Mexico’s shores at all.
Transporting cargo through Mexico has unexpected hazards, but depending on your industry and product, it may be worth a move from an Asian location.
Shorter Transit Times. In today’s highly customized and consumer driven market, achieving speed to market is a competitive advantag…
Refin S.A. is an Ecuadorian company specialised in the export of tropical products, fundamentally mango and plantain (around 80% of all sales); roots, such as taro and yucca, and a bit of papaya and pineapple.
With the exception of mangoes, 20% of which are grown by the firm, all products come from associated producers.
Mangoes, which are 100% focused on the export market, are a very important product for the company, with an average volume of 850,000 4 kilo boxes per season, which goes from October to January.
Their main destination is the United States, with around 60% of the exports, and where, just like plantains, they are popular among the Latin communities. The other 40% is divided between Canada, Europe, Mexico and New Zealand.
For Refin S.A., Europe is a relatively small market, with just 10% of all shipments.
"It is a difficult market both in terms of logistics and varieties, as Europeans do not particularly like the Tommy Atkins, but we believe that it is a market with gr…
Mexican drug cartels are sending members of their inner circles to live and work deep inside the U.S., Michael Tarm of the Associated Press reports.
The syndicates used American middlemen to become the nation's No. 1 supplier of cocaine, marijuana, and heroin in the 1990s, but kingpins have begun consolidating power by sending trusted agents to run burgeoning operations.
Cartels are suspected of running drug-distribution networks in at least nine non-border states, including several operations in middle-class suburbs, AP notes. More than 1,200 communities reported some level of cartel presence to the DEA in 2011.
Places like Atlanta and Chicago — which have seen a surge of cartel activity in the last year — now serve as sophisticated hubs for traffickers who supply America's $60 billion-a-year narcotics industry.
Art Bilek, Executive vice president of the Chicago Crime Commission, told AP that cartels in the city began p…
Latin America: Maersk Line, the container ship division of Denmark’s A.P. Moller-Maersk, plans to raise its Latin American shipping rates by as much as 30% this year to staunch losses and to pay for 16 ships being built for the region, the company has said.
The decision follows Maersk's struggles to recover from the world economic downturn.
The cost of fuel for the company's ships has tripled in the last five years while shipping rates have fallen by 10%, leading to quarterly losses or slim profits, Robbert Jan van Trooijen, the company's chief executive for Latin America, has told the Reuters news agency.
Without higher freight rates, it would be difficult to recoup the company's US$ 2.2 billion investment in 16 container ships for its Latin America service, he said.
Maersk has raised its 2012 profit outlook but says its performance will still fall below 2011 levels. The company is looking to Latin America to help reverse its recent …