The practice of moving business operations to nearby countries to shorten supply chains has gained prominence in recent years .
The nearshoring phenomenon is transforming the land transportation industry in North America , according to experts from Mexico, the United States and Canada during a seminar organized by the North American Transportation Forum (NATF) of the International Road Transport Organization (IRU).
The practice of moving business operations to nearby countries to shorten supply chains has gained prominence in recent years, driven by the United States-Mexico-Canada Agreement (USMCA) and increased investment in the region.
Kenneth Smith Ramos , Mexico’s former chief negotiator for the USMCA, noted that the agreement has consolidated Mexico as the United States’ top trading partner .
“Since the USMCA came into effect, Mexico has become the United States’ number one trading partner. Investments are flowing into Mexico, which reinforces the integration of supply chains in the region,” Ramos said.
According to the expert, nearshoring has great potential to grow, especially in Mexico, where companies from China and Europe are redirecting their supply chains to get closer to the United States.
He also expressed that a possible Donald Trump or Kamala Harris administration could have a significant impact on trade dynamics, making the upcoming review a point of interest for the transportation industry and investments.
Growth in road transport
Bob Costello, IRU chief economist and senior vice president of the American Trucking Association, highlighted how nearshoring has driven a significant shift in on-road freight transportation in North America.
The data reflects an increase in the number of trucks coming from Mexico compared to Canada.
“In the early days of the North American Free Trade Agreement, 60% or more of the trucks coming into the United States came from Canada. Today, over the last five years, about 30 % more trucks are coming from Mexico than from Canada,” Costello explained.
The importance of road transport in the region is key to trade. According to data presented at the seminar, 70% of trade between the United States and Mexico moves by road, while in the case of Canada the figure rises to 56%. Costello highlighted that the same products circulate both in exports and imports between these countries, which reflects a growing integration of North American supply chains. This type of integration is a clear indicator of how nearshoring has begun to reshape the logistics industry across the continent.
