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Shift in trade dynamics boosts Mexico's role in US-China trade

The US-China trade landscape has changed significantly since 2018 due to tariff policies initiated by the Trump administration and continued under Biden, impacting global supply chains and affecting over US$380 billion in trade. This has led businesses to seek alternative solutions.

An analysis by VesselBot of shipping data has highlighted Mexico as an unexpected beneficiary of these trade tensions. In the first half of 2024, there was a 61.5% increase in TEU volume from China to Mexico, with Mexican ports like Manzanillo and Lázaro Cárdenas experiencing significant growth in imports. Conversely, direct shipments from China to the US have declined.

The increase in goods arriving at Mexican ports and then transported into the US by truck indicates a shift in how products are moved from Asia to North America. Major industry players, such as Maersk, have adapted by expanding their facilities in Mexico and the US.

Motor accessories lead Mexico-to-US shipments, with Tijuana being a major customs location. However, this shift in trade patterns has raised environmental concerns due to increased CO2 emissions from cross-border truck traffic.

This change in trade dynamics reflects a broader restructuring of global supply chains in response to geopolitical pressures and highlights the need for the industry to balance economic benefits with environmental and operational efficiency.

Source: Container News

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