Manzanillo and Lazaro Cardenas, two Mexican ports, saw significant increases in cargo last year, which suggests that Asia’s inputs are driving up export production for the U.S. and other markets. Both ports also moved up in the rankings of the busiest North American gateways based on laden volumes.
MEXICAN PORTS RISE IN 2023 RANKINGS
Manzanillo, a port on Mexico’s Pacific Coast, rose two ranks to become the fifth busiest port in North America in 2023, behind Los Angeles, New York–New Jersey, Long Beach, and Savannah, thanks to a 7% increase in container traffic year over year. This spring, several maritime carriers began offering container services to Manzanillo. The 11th busiest import container port in North America is now Lazaro Cardenas, overtaking Oakland, while the 19th-ranked Port of Altamira in Mexico moved up one position.
USMCA OPENS THE DOOR
A contributing factor to the increase of activity seen by ports in Mexico is the U.S.-Mexico-Canada Agreement (USMCA) that was signed in 2019. The agreement created outlines for improving trade between the U.S., Canada, and Mexico. Workers rights, intellectual property, environmental, and industry specific protections were also addressed within the agreement. USMCA was established to increase trade between the three biggest countries in North America while encouraging collaboration through practices like nearshoring.
Nearshoring is the practice of transferring a business operation to a nearby country, especially in preference to a more distant one.
NEARSHORING CONTINUES MOMENTUM
The increase seen in port volumes throughout Mexico highlights the growth of nearshoring and the benefits it can provide. Many large U.S. companies have successfully nearshored their manufacturing operations to Mexico in recent years. Nearshoring enables companies to avoid some of the impacts seen from geopolitical issues between the U.S. and China without drastically increasing costs. Companies can also improve the proximity of their operations allowing for improved communications and reactivity throughout their supply chain.
Over the last few years, Mexico has established itself as a top trade partner of the U.S., consistently topping the list in terms of total trade by goods value. Confirming their status, the most recent trade data from the U.S. Census Bureau’s monthly trade statistics places Mexico as the top trade partner of the U.S. for April 2024.
Stay up-to-date on freight news with Green’s Weekly Freight Market Update by following us on LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.
