In January, China’s container exports to Mexico experienced a significant surge of nearly 60% year over year, according to data from global freight rate intelligence platform Xeneta. China-based shippers moved 117,000 twenty-foot equivalent units (TEUs) during the month, compared to 73,000 TEUs in January 2023. Xeneta’s chief analyst, Peter Sand, described this as “probably the strongest growing trade in the world right now.”
Sand suggested that China might be utilizing Mexico as a means to avoid tariffs, speculating that some goods could be trucked into the U.S. This suspicion is supported by recent reports from Mexico’s naval ministry, which indicated a surge in freight flows into the country’s West Coast ports in January.
The increase in trade between China and Mexico is evident not only in container movements but also in annual trade growth rates. In 2023, the trade growth rate between the two countries reached 34.8%, compared to 3.5% in 2022. This growth led Mexico to surpass China as the number one trading partner for imports into the U.S. in the first quarter of 2023.
Meanwhile, construction has begun on the Rancho Del Rey Logistics Park in El Paso, Texas, near the U.S.-Mexico border. This development is strategically located close to the Ysleta-Zaragoza International Bridge, a significant port of entry handling a substantial portion of El Paso’s northbound cargo truck crossings.
Additionally, Nippon Steel, Japan’s largest steel manufacturer, announced a $71.3 million investment to build a plant in Apaseo El Grande, Mexico. This facility will produce steel sheets for electric vehicles and marks Nippon Steel’s second plant in the state of Guanajuato.
Overall, these developments underscore the growing economic ties between China, Mexico, and the United States, with significant implications for trade patterns and infrastructure investments in the region.
Inspired by: https://www.freightwaves.com/news/borderlands-mexico-container-shipments-from-china-to-mexico-skyrocketed-in-january