Is Mexico becoming the new China?

data reveals a staggering 59.7% surge in container volume demand from #China to #Mexico in January 2024 compared to the January 2023. With volumes soaring from 73,000 TEU to 117,000 TEU (source: Container Trades Statistics), this trade route emerges as one of the world’s fastest-growing.

Two pivotal factors fuel this remarkable growth:

1.The rise in #China imports into #Mexico, destined for re-exportation to the #US, circumventing tariffs imposed on direct imports from China.

2.Increasing shipments of raw materials from #China to #Mexico, fuelling the expansion of light industries in #Mexico to cater to the #US market.

As Peter Tirschwell aptly stated in one of his interviews , ‘trade is like water,’ always finding its way around obstacles. The pivotal question isn’t whether #Mexico will become the new China, but rather, whether customers stand to benefit from these evolving trade dynamics.

Read the article here: https://www.freightwaves.com/news/is-mexico-becoming-the-new-china