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Mexican ports unlikely to win big from West Coast rerouting

Despite ongoing congestion at the Los Angeles-Long Beach port complex, don’t expect Mexican ports to become major gateways for U.S.-bound cargo anytime soon, Transplace CEO Thomas Sanderson said Tuesday.

Container volume growth at Mexican ports has grown at twice the pace of their North American counterparts since 2000, because of strong manufacturing activity fueled by strong NAFTA demand and lower labor costs than China, and broader economic growth, Sanderson said at the 15th annual TPM Conference in Long Beach, California. Transplace, a third-party logistics provider, has a heavy Mexican presence.

But Mexican ports still can’t compete for the majority of U.S.-bound cargo because their geography equates to longer sailing times and inland transits to the U.S interior, with shippers having to pay more for the latter than if they shipped via U.S. ports.

More at the Journal of Commerce


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