Shipper - 4 min read

4 Ways to Ensure Your Nearshoring Operations Run Smoothly

In 2020, when obstacles like the Covid-19 pandemic and tariffs on China created longer lead times, shippers sought to diversify their supply chains and move their operations closer to the end customer. Some United States companies decreased shipping times by starting up manufacturing operations in Mexico – a practice known as nearshoring. Since then, nearshoring has rapidly grown in popularity, especially in the automotive industry. As of 2023, Mexico has grown to be the United States’ largest trading partner.

Nearshoring is an effective strategy because it eliminates ocean shipping from the equation and moves manufacturers closer to the end consumer, saving significantly both time and money. However, if it is not done correctly, several hurdles can prevent companies from reaping the maximum benefits of this approach. When shipping across the U.S.-Mexico border, it’s common to run into a lengthy customs process, and without a partner with the core knowledge of border crossing, many problems can arise. Additionally, if a company is relying on multiple logistics providers, the documentation process can take much longer. To avoid these delays, it’s vital for companies to fully optimize their cross-border shipping processes and rely on a trusted partner with the core competency to get them across the border on time.

Here are some key ways that shippers can improve their nearshoring strategies for a successful cross border experience:

If you’re looking to optimize your cross-border operations, RXO can help. In March 2023, RXO opened a 135,000 square foot facility in Laredo, TX, which features direct highway access to the World Trade Bridge. With 43 dock doors, high security standards and a skilled bilingual team that’s available 24/7, this facility is equipped to move products across the border efficiently and effectively. Several of our automotive clients already take advantage of this service today.

RXO has more than 20 years of experience with managed transportation in Mexico and cross-border operations. In addition to our Laredo, TX location, our Monterey, Mexico office is staffed with 200-plus logistics experts that sit on-site within control towers and customer facilities. We currently manage over 800 CTPAT-certified and pre-vetted carriers that can handle nearshoring shipments safely and reliably.

To learn more about RXO’s nearshoring capabilities, contact us today at [email protected].