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The nearshoring boom positions Mexico as a global logistics epicentre

The process of nearshoring is currently gaining importance in the international logistics sector. Its function involves the relocation of business activity to closer regions in order to be closer to target markets. According to several reports, one of the countries with the highest demand for production capacity is Mexico, placing it at the centre of the global supply chain.

In this sense, Smart Logistics, a company specialising in integrated logistics, is an effective partner in import and export traffic with Mexico. Its presence in various parts of the country under the Alonso Forwarding Mexico brand not only exemplifies the company’s interest and confidence in the country’s logistics potential, but also highlights the strategic importance of this location for the global supply chain.

A growing logistics hub

Mexico is currently one of the most promising economies in the Americas and has a logistics sector that is constantly evolving. Its geography offers a notable strategic advantage in the context of nearshoring. As a neighbour of the United States, one of the world’s leading economic powers, Mexico is an attractive option for companies wishing to maintain access to the US market. It also has a cost-competitive labour force compared to other regions, making it a favourable destination for foreign investment.

The country has implemented significant measures such as the use of advanced technologies and the development of projects to enhance logistics. The improvement of transport systems and the modernisation of its ports and airports have strengthened the country’s capacity to efficiently handle international trade.

Mexico a beneficiary of the US-China trade war

The so-called trade war between China and the United States has generated a series of challenges for companies, especially in terms of supply chains. Given this situation, Mexico has emerged as a strategic alternative for companies seeking to diversify their operations and reduce their exposure to trade tensions between the two great powers.

Last year, the United States imported more goods and services from Mexico than from any other country in the world, displacing China as its top supplier, according to data released by the US Census Bureau. Mexican exports totalled $475.606 billion last year, a jump of 4.6% compared to 2022. For its part, China sold 20 per cent less to the United States than in the previous year. Its exports amounted to 427,229 dollars. A milestone in the history of the American country.

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Smart Logistics participates in Gulfood, the most important trade fair in the food industry

Smart Logistics, an integrated logistics operator, participated in the 29th edition of Gulfood, the world’s largest food fair held in Dubai. This event hosted more than 5,500 exhibitors from all over the world with a representation of more than 190 countries. Driving creativity and change, this fair unites food-related companies on a global level and acts as a springboard for industry trends and a global sourcing powerhouse.

Its extensive programme of meetings, Gulfood Connexions, allows participants to keep abreast of trends in the market. In this context, Smart Logistics had the opportunity to showcase its international network of logistics services for the food and beverage sector. The company highlighted its global presence, underlining its ability to provide comprehensive logistics solutions in different parts of the world.

A constantly evolving market

The food industry is a sector that spans from agricultural production to the consumer’s culinary experience. It is a key driver of the global economy, creating jobs, driving innovation and responding to changing customer preferences. Gulfood 2024 has highlighted the importance of this sector, showing how it not only meets basic needs, but also influences culture, sustainability and global health.

This diverse and dynamic environment involves farmers, producers, distributors, retailers and consumers in an interconnected network. Adaptability and responsiveness to emerging trends are essential in an industry that is constantly evolving to meet quality standards and changing consumer expectations.

Top quality in the transport of perishable goods

The distribution of food, from its origin to its final destination, represents a logistical challenge that requires precision and care. The cold division of Smart Logistics, a forwarder with global reach, is an expert in the transport of all types of perishable products. Thanks to the help of new technologies, key services such as cold treatment and qualified professionals, this division ensures the traceability of goods at all times.

The company’s participation in Gulfood has been a strategic step to consolidate its position in the international market, as well as to learn about and explore the latest trends and applications in the perishable products sector.

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Red Sea crisis: epicentre of global economic uncertainty

The crisis in the Red Sea has plunged the maritime sector into deep uncertainty, threatening to unbalance global trade and generate worldwide economic consequences. With more than 50 attacks by Yemen’s Houthis in recent weeks, the world’s major shipping lines have been forced to halt their operations in this channel.

The Red Sea is a strategic route connecting Europe, Asia and Africa, and the ongoing siege has created a critical situation for international trade. The immediate impact is reflected in a significant delay in the arrival of essential supplies for various industries, generating widespread fears of possible price increases globally.

In this context, Smart Logistics, as a logistics operator with global coverage, keeps abreast of the current situation and is in constant communication with its customers to keep them informed. The aim is to offer them efficient and secure logistics solutions.

The alternative route

One of the most notable responses to this crisis has been the rerouting of vessels that previously transited the Suez Canal. Unable to guarantee safety in the Red Sea, ships are now forced to round Africa via the Cape of Good Hope in the south of the continent. This change means an increase in crossing times of between 12 and 20 days, as well as an increase in the distance travelled from 18,000 to 25,000 kilometres.

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The International Maritime Organisation (IMO) has confirmed that at least 18 shipping lines have opted to divert their ships around the Cape of Good Hope to avoid persistent attacks in the Red Sea. This increase in distance and travel time not only affects the operating costs of shipping lines, but also has a direct impact on logistical efficiency and the timely delivery of goods.

Supply shortages

The Association of Manufacturers and Distributors (AECOC) has also expressed its concern about the lack of supply of consumer products. A situation that could worsen with the arrival of the Chinese New Year on 10 February.

Spain imports 100 billion euros worth of key Asian products annually, such as food, textiles and fashion, hardware and DIY, and technology goods. Delays in delivery time would have a serious impact on the country’s economy.

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ETS, the EU’s environmental strategy in the maritime field

From 1 January 2024, the EU ETS (European Union Emissions Trading System) will come into force, a regulation that refers to the greenhouse gas emissions trading scheme created by the European Union to combat climate change. A pioneering scheme, the ETS is the world’s first emissions trading scheme applicable to all 27 EU Member States, plus Liechtenstein, Norway and Iceland.

From that day on, shipping companies will have to rigorously monitor their emissions to ensure the required environmental compliance. The proportion of CO2 emissions to be covered by allowances increases gradually each year, by 2025 40% of reported emissions must be covered, by 2026 70% and from 2027 onwards 100% of emissions must be reported.

The keys to the EU ETS

Shipping companies covered by the EU ETS must have an approved monitoring plan for reporting annual emissions. Each year, companies must submit a report on emissions from each of the ships under their responsibility.

How is this data checked? A particular year’s records need to be validated by an accredited body by 31 March of the following year, or by 28 February if required by the relevant administrative authority. Once verified, companies must surrender or use the appropriate number of allowances by 30 September of the same year.

Smart Logistics, as an integrated logistics operator, is aware of the relevance and impact of these new regulations on the maritime sector and the environment. The ability to adjust to the new regulations with flexibility and commitment is a key element in the company’s strategy.

Its impact on the maritime sector

According to some studies, the implementation of the EU ETS could lead shipping companies to make a first stop in North Africa, the Adriatic Sea, the United Kingdom or the Eastern Mediterranean in order to avoid the costs of the levy. A situation that worries the representatives of some Spanish ports because it could lead to a flight of calls to other ports outside the European area, or to a decrease in transhipments.

Within the framework of the international meeting “The challenge of the ETS for European ports”, presidents and managers of these enclaves have demanded a greater involvement of the IMO. A measure which could attenuate the effects on the loss of stable jobs and business relocation which could occur with the entry into force of the new Emissions Trading Scheme in the European Union.

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Smart Logistics, company specialised in import and export processes between Mexico and Spain

The forwarder company Smart Logistics is an effective ally in import and export traffic with Mexico. This was confirmed during the training day held at the Consulate of the North American country in Barcelona, where the Consul Claudia Pavlovich welcomed the participants. The meeting was attended by Spanish companies with large commercial exchanges with Mexico, who were able to share experiences and knowledge regarding traffic on this route.

The conference, which was also attended by representatives from the port of Barcelona, served to discuss the main operational processes required from both Mexico and Spain. The subject of customs processes and documentation was also discussed. In summary, the importance of having practical and efficient information as a first step to start successful operations in the medium and long term was noted.

One of the biggest economies in Latin America

Antonio Durán, Managing Director of Smart Logistics, highlighted during his speech that “in a constantly evolving international trade scenario, Smart Logistics is developing and presenting itself as an integral partner, as a strategic partner, for companies that want to grow in different international markets, offering tailor-made logistics solutions”.

Mexico, with a population of 127 million people, ranks 14th in the ranking of world economies, is the leading exporter in Latin America (42% of the region’s total) and holds fifth place in terms of territorial extension on the American continent. At present, 1,697 Catalan companies export constantly to Mexico. By sector, vehicles, machinery, perfumery and cosmetics stand out. They represent 35.7% of Spain’s total exports to the country. As for imports, the chapters on vehicles, organic chemical products and fish stand out.

The US-China trade conflict is a win-win situation for the country

The economic war between the US and China, especially since COVID-19, is benefiting Mexico in terms of trade and investment. In this scenario, the country is emerging as an attractive destination thanks to its geographical proximity to the US market and its well-established manufacturing infrastructure. This trend, as evidenced during the conference, is generating a greater demand for production capacity in the Latin American country (nearshoring).

In the coming years, according to data from the International Monetary Fund (IMF), Mexico’s development will be concentrated precisely on exports of goods and services.

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