Logo Mexicom Logistics  
August 2012
In This Issue
Fuel rates in Mexico
Dissatisfaction with HOS
Cross-border threat?
Cass Truckload Linehaul Index
Freight Cost vs Volume
Canada / Mexico trade

 

Truck Capacity in Mexico

 

U.S. shippers importing goods from Mexico say they are looking for new transportation options as truckload capacity along the border gets tighter.The peak shipping season could further diminish available truck capacity, said Troy Ryley, director of transportation and distribution at Transplace Mexico.

As more goods are shipped directly from China to Mexico, fewer shipments are routed through U.S. ports, which means fewer trucks heading south to Mexico.The value of goods shipped by truck across the U.S.-Mexican border hit an all-time high in May, increasing 17.1 percent year-over-year to $29.1 billion.

 

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Dear Newsletter subscriber: 

 

We're thrilled to bring you our sxth issue of this newsletter. The goal of this newsletter is to provide you with quick, useful information for your business in Mexico. As a company, we value your opinion and we encourage you to contact us in case you have questions or comments.

 


Mexico: The continent's China?
 

China lost its factory wage advantage over Mexico earlier this year, an ongoing trend that has fueled Mexican economic growth past its neighbors to the north and south. To date, manufacturers operating in Mexico have been largely shielded from the drug-related violence, which has also encouraged the growth in manufacturing. 

 

 

  

Fast-rising Chinese labor costs are prompting companies to "reshore" production back to Mexico and the U.S., where transportation and other logistical costs are lower.

Mexico's proximity to the United States is another factor that explains the boom in manufactures, because it solves the most pressing issue facing manufacturers, which is speed to market. 
 

Mexico's economy could top Brazil's by 2022, helped by manufacturing, analysts predict. Mexico is benefiting from its reliance on the U.S., where manufacturing has recovered, while Brazil sees less commodity demand from China. Mexico is once again reaping the benefits of the 1994 NAFTA pact with the U.S. and Canada. Manufacturing production has leapt to new highs, after a lull in much of the last decade when companies rushed into China. Mexico's auto production from January to July rose 13% from a year ago to a 1.65 million vehicles, a record for that period.

 

 

 Access Article                                                  Source: El economista 

 

 

No more tariffs on Eggs in Mexico 

  

 

Mexico's Economy Minister Bruno Ferrari said on Wednesday that the country will drop tariffs on egg imports in an effort to halt steep price increases, which are hurting consumers and adding to inflation.

 

Newspaper headlines have proclaimed an "egg crisis" after prices more than doubled in some states in recent weeks due to an outbreak of avian flu in Jalisco, the state that produces more than half the 2.5 million tonnes of eggs consumed in Mexico every year.

 

Mexico normally does not import eggs but local supplies were reduced after more than 10 million chickens were slaughtered in a bid to stem the flu outbreak. Eggs, although they have a low weight in Mexico's consumer price index, are commonly consumed and as such may feed into perceptions of rising inflation.

 

 

 Acces Article                                            Source : Reuters Mexico

 

Issac becomes hurricane, causes oil production stoppage

 
 
Oil production in the Gulf of Mexico ground to a near halt and ports and coastal refineries curtailed operations on Tuesday as Hurricane Isaac neared the Louisiana coastline. According to current projections, Isaac is not likely to cause major damage to infrastructure and therefore shouldn't be like Katrina (in 2005) in having a long term impact on US refining and production operations.
 
As of late Monday, around 2 million barrels per day of Gulf Coast refining was shut down as the energy industry braced for Isaac, according to an estimate by Citigroup in New York. The Department of Energy had tallied 1.32 million barrels-per-day of refining capacity offline as of Monday afternoon.
 
 
 
Many Gulf Coast refineries are in low-lying areas, but it is predicted that any flooding would be much less severe than during Katrina. It is expected the plants that stopped production to restart three to five days after Isaac's passage 
 
 
Acces Article                                                     Source:  Noticias Terra 

Mexico's auto industry booms

  Mexico will boost annual auto output by 1 million vehicles within three years, a 38 percent jump from last year, as foreign manufacturers use the country as an export base, said Carlos Guzman, head of the nation's investment promotion agency.  

 

 

 

 Mexico's economy is proving resilient as its auto industry booms, with both vehicle production and exports reaching their highest levels in the first seven months of the year for any January to July period, the nation's Automobile Industry Association, or AMIA, said on Aug. 6. New plants announced by companies such as Mazda Motor Corp. (7261), Nissan Motor Co. (7201) andAudi AG (NSU) will help the nation close the gap with Korea, the biggest exporter after Germany and Japan, Guzman said.

 

Foreign investment fell 9.2 percent in the first half of the year to $9.62 billion from preliminary figures for the same period in 2011, Mexico's Economy Ministry said on Aug. 23. The nation received $20.4 billion in investments last year. 

 

 

Acces Article                                 Source : El informador

 

 


SE

MEXICO-CANADA TRADE 
June 2012 
Trade Among NAFTA Partners 
Region of North America

 

 

 * By the end of June 2012, total trade in the NAFTA
Region recorded a value of USD$532.7 billion,
equivalent to a growth of 7%, compared to the
previous year's same period.
* Within the block of North America, Mexico's trade,
along with its partner countries, went from 30.3% of
the region's total back in June 1993 to 46.3% in June
2012, reflecting the importance of Mexico as a trading
partner of Canada and the United States.
* As for the Mexico-Canada trade, flows increased to
4.3%, amounting USD$17.5 billion. This value
represents a bilateral trade increase of 847% in the
NAFTA era, which also translates as an average annual
growth rate of 12.6% between 1993 and 2012, the
highest within the region.
* In regards to Bilateral Trade between Mexico and
the United States, the goods exchange increased
8.2%, resulting in USD$231.4billion.

 

 

Source : http://www.economia.gob.mx/

We hope this Newsletter is of any help for you. Please share with us any concerns, questions or comments.

Sincerely,

 

Aldo Medina 
Sales and Marketing director 
Mexicom Logistics