The discussion at the FreightWaves 3PL Summit centered around the future of cross-border freight and third-party logistics providers. Matt Silver from Cargado shed light on the evolving role of 3PLs and their significance in assisting shippers as more manufacturers shift their supply chains to Mexico. As the co-founder and CEO of Cargado, a FreightTech company dedicated to streamlining the cross-border shipping process, Silver shared his insights with Mary O’Connell from FreightWaves.
Silver emphasized the growing benefits for companies relocating to Mexico from Asia, predicting a continued surge in trade between Mexico and the U.S. He highlighted the $800 billion trade volume between the two countries last year and anticipated further growth, especially with the establishment of large facilities like the Tesla factory in Mexico.
Furthermore, Silver explained why shippers are inclined to work with brokers rather than directly engaging carriers. He pointed out that many shippers prefer to avoid the complexities at the Mexican border, and some carriers lack the infrastructure for robust customer service. By collaborating with brokers, carriers can streamline operations and focus on transportation without getting bogged down in border-related paperwork.
In related news, a Texas-based customs broker expanded its presence in cross-border operations, reflecting the ongoing shift in supply chains towards Mexico. Additionally, trade in the California-Baja mega-region saw a boost due to changing supply chain dynamics. However, BNSF Railway reported mass furloughs in operations across four states, indicating challenges faced by the railway industry.
