Borderlands: Laredo remains the country’s premier gateway for international trade

Borderlands is a weekly recap of developments in the world of cross-border trucking and trade between the United States and Mexico. This week: Port Laredo remains the country’s premier gateway for international trade; rail freight flights increased 29% in the first quarter in Mexico; a Taiwanese automotive supplier is investing $1 billion for its expansion into Mexico; and Forza Steel is building a plant at the Port of Brownsville.

Laredo, Texas remains the nation’s premier gateway for international trade

For the second month in a row, Laredo, Texas retained the top spot among 450 international gateways for commerce.

In March, Laredo recorded a 12% year-over-year (y/y) increase in total trade to $28.6 billion, according to the latest US Census Bureau data analyzed by CityWorld.

Chicago OHare International Airport ranked No. 2 with $26.4 billion in trade, while New York’s John F. Kennedy International Airport was No. 3 with $23.4 billion of dollars.

The Port of Los Angeles, which held the top spot for most of 2022, fell to No. 4 in March, accounting for $22.1 billion in trade.

Mexico also ranked as the United States’ top trading partner for the fourth straight month in March, as total trade rose 4.5% year-on-year to $72 billion.

Canada ranked second, as its total trade with the United States fell 5% year-on-year to $69 billion in March. China ranked third with trade down 26% year-on-year to $45 billion.

Laredo’s exports to the world increased 9% year-on-year to $10.9 billion and imports increased 14% year-on-year to $17.7 billion.

Auto parts ($2.3 billion), passenger vehicles ($1.1 billion) and heavy trucks ($1.1 billion) were Mexico’s top three imports to the United States via Laredo .

Mexico’s fresh produce season has been in full swing since early March, with Laredo importing $211 million in strawberries and blueberries and $121 million in avocados during the month.

The top US exports through Laredo were auto parts ($1.4 billion), gasoline ($334 million), and diesel engines ($284 million).

Crossings for commercial trucks at Laredo increased 5.5% year-on-year to 262,109 vehicles in March, while April saw a 3.5% year-on-year increase to 230,534 tractor-trailers.

On Friday, the Reefer Outbound Tender Volume Index (ROTVI.LRD) in Laredo was up about 2% week over week, helped by Mexican goods crossing the border, according to FreightWaves SONAR. On a yearly basis, the cargo volume of reefer containers outbound from Laredos is up 49%.

Rail freight flights up 29% in first quarter in Mexico

Mexico’s commercial rail sector saw a surge in cargo theft during the first quarter of 2023, recording 580 robbery incidents.

According to the Mexicans rail transport regulatory agencythe northwestern state of Sinaloa recorded the highest number of cargo theft cases from January to March with 34 incidents.

Sonora State ranked No. 2 with 31 reports of cargo theft, followed by Jalisco with 27 incidents in the first quarter.

The most stolen products were food products, building materials, consumer goods and industrial materials.

Taiwanese auto parts supplier announces $1 billion expansion in Mexico

Taiwan-based automotive electronics manufacturer quantum computer invests $1 billion to expand manufacturing operations in Monterrey Mexico.

The Taiwanese manufacturer opened the Monterrey plant last year, where it produces a computer that can control various functions of a vehicle.

Quanta did not say where the $1 billion funding will be used, but officials in the Mexican state of Nuevo Leon said the investment would expand Quantas’ existing operations in Monterrey, according to Reuters.

Quanta Computer is a supplier to electric vehicle maker Tesla, which is building a $5 billion factory in Monterrey.

The expansion is expected to create 2,500 jobs. The factory currently has over 2,000 employees.

The company employs more than 70,000 people worldwide, with operations in Asia, the United States and Europe.

Forza Steel will build a plant at the Port of Brownsville

Forza Steel announced a $60 million investment to build a manufacturing plant in Brownsville Harbor in South Texas.

The plant, which will create 150 jobs, will produce steel pipes and tubes for the automotive, construction and oil and gas industries.

The 650,000 square foot facility is expected to open in July, according to a Press release.

The Port of Brownsville is located 277 miles south of San Antonio at the southern tip of Texas along the Gulf of Mexico. It is the only deep water seaport located along the border.

Forza Steel said it plans to import 260,000 metric tons of raw materials per year from Mexico to the Brownsville plant to produce 240,000 tons of tubular steel products. The company is headquartered in Salinas Victoria, Mexico, approximately 165 miles south of Brownsville.

Show: TQL sues former employee for breach of non-competition OK.

Click for more FreightWaves articles by Noi Mahoney.

More articles from Noi Mahoney

US wants labor rights probe at Goodyear plant in Mexico

Truckers threaten to boycott Florida over migrant crackdown

Canadian city wins another court battle over illegal trucking operation