Many recent articles and white papers have been discussing the emerging trend of nearshoring in Mexico. Thanks to rising costs in China, delays and disruptions to transpacific shipping routes, and logjams at United States western seaports, many manufacturers are looking closer to home for their sourcing needs. For many of these companies, Mexico – the third largest U.S. trade partner – has become a cost-effective alternative.
According to a recent manufacturing study published by a reputable global research firm, some 46 percent of respondents have already engaged in a plan to nearshore within the next five years. Of those companies, 63 percent say Mexico is the leading candidate, citing lower transportation costs and improved speed-to-market. As a result of increasing demand, truck and rail traffic between the U.S. and Mexico set record highs for volume and freight value, in 2014 according to the U.S. Bureau of Transportation Statistics.
Being closer to the U.S. market by nearshoring in Mexico provides companies with a number of benefits, including:
Proximity. A shipper can move freight from Mexico to the U.S. by ocean in 48 hours, and by truck within a few days or less. By contrast, shipping a container from Asia to the U.S. could take up to six weeks to deliver. Another consideration is that operating in similar time zones creates opportunities to strengthen collaboration between U.S. companies and their Mexico counterparts.
Trucks and Rails. More than 1.37 million trucks crossed the U.S./Mexico border in the first quarter of 2015, up almost 3 percent from the prior year. Also, shippers now have more reliable and seamless intermodal service options between the U.S. and Mexico, which can offer a 15- to 20-percent cost advantage over trucks alone.
Labor. Unlike a decade ago when Mexican labor costs were reportedly 60 percent higher than those in China, today they’re on par or lower. Mexican companies have also transitioned from simple assemblers of products to exceedingly sophisticated manufacturers.
With an abundant labor pool, lower wages, low energy costs, and simplified truck and rail transport, including intermodal operations, Mexico has emerged as a nearshore alternative to overseas manufacturing. Companies unfamiliar how best to optimize their U.S./Mexico supply chains through the use of effective cross-border transportation and warehousing can contact the experts at Logistics Plus for help. We have been managing logistics between the U.S. and Mexico for nearly 20 years, and we recently celebrated our 10th anniversary for operations in Mexico.
The benefits of working with the Logistics Plus cross-border logistics team include:
Bilingual staff members on both sides of the border
Proven experience and success on both sides of the border
Competitive rates and contracts for cross-border transportation
Full shipment visibility across the entire supply chain
Customs clearance, global trade compliance, and NAFTA expertise
Warehousing availability with Foreign Trade Zone (FTZ) activation
The Logistics Plus Marine Projects Logistics team provides complete solutions for the entire Maritime and Shipyard Industry.
A couple of our recent logistics projects include:
Transporting a 6.5 meter high RRM vertical ruel tank from Norway to Istanbul
Moving 30 meters long, 24 meters wide 17 meters high, and each 1,014 metric tons, 4 x NH3 vessel gas tanks from South Korea to the USA
The Logistics Plus Marine Projects Logistics team will plan, manage and undertake special logistics projects of any scale from start to finish. However challenging the geography, however complex the lift, our Marine Projects Logistics team works closely with our engineering and contractor customers to ensure that every project is planned, delivered and completed on time and to exact specifications.
The many services we provide include:
Tug, Pilot, Mooring, Crew, Dredger Motor Barge Transportation
Yacht, Catamaran, Ferry Transportation
Barge / Floating Crane Operations
Cargo inspections including loading and discharging
Transport of Spare Parts
Customs Brokerage
Vessel agency and husbandry
Feel free to click the image above to download a PDF copy of our Marine Projects Logistics brochure. To inquire about our services for your next cargo project, please email us at projectcargo@logisticsplus.com or click the button below.
Are you going to the 2016 Breakbulk Americas Conference? Be sure to stop by and visit us at booth 451!
Choosing the right mode for freight transportation is a very important part of any logistics playbook. You will ship your product by either ground, air, ocean or rail transport. The factors that come into play in mode selection include the following:
Availability – is equipment and capacity readily available?
Speed – is the transit time for final delivery acceptable?
Cost – is the freight cost acceptable for your situation?
Reliability – is your delivery schedule flexible or rigid?
Safety – is your product susceptible to theft or damage?
As you consider which mode to use, here are some of the advantages and disadvantages that come into play:
With the fall football season just around the corner, you should know that the Logistics Plus team is here to help you with your logistics playbook. We have the services and solutions to help you run any logistics play your supply chain demands. If you’re looking to score freight savings and earn extra points with your customers and vendors, here are a few common plays we can help you successfully execute (just click the play you wish to run to get started):
Logistics Plus media partner, WP$E radio, continues to air short audio clips from Jim Berlin and others within the company as part of its business programming. WP$E AM 1450/FM 107.1 is a commercially licensed radio station serving Erie County, Pennsylvania. The station is owned by the Penn State Board of Trustees, and it is operated by Penn State Behrend, under the direction of professional broadcast staff. In addition to providing a one-stop source for global and financial news, WP$E also airs ongoing commentaries from regional business leaders.
Presented here are a few recent audio clips from Jim covering our recent 20th Anniversary announcement.
New online video documents the company’s history, growth and success.
ERIE, Pa. (August 23, 2016) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, is celebrating its 20th anniversary this month. Two decades of growth and experience have transformed Logistics Plus from a three-person operation, supporting the GE Transportation division of General Electric, into a $135 million global solutions company with over 400 employees in 20 countries serving thousands of customers around the world.
Company milestones:
1996: Founded with a one-year, $120,000 purchase order to manage inbound logistics for GE Transportation
1997: Recognized as a GE six-sigma best practice by Jack Welch
1997: Expands into Mexico, Czech Republic, Poland and Russia
1999: Adds new clients and diversifies into other industries
1999: Global expansion continues with new offices in India, China, and Indonesia
2003: Company purchases and renovates historic Union Station in Erie, Pa. and makes it its global headquarters
2004: Receives Pennsylvania Governor’s Export Excellence Award
2004: Jim Berlin named an EY Regional Entrepreneur of the Year
2007: Receives Inner City 100 and Wall Street Journal Top Small Workplace Finalist Awards
2011: Acquires Horizon Logistics, expanding global freight forwarding capabilities
2014: Named Employer of the Year (non-manufacturing) by the DevelopErieeconomic agency
2015: Named a top 50 freight brokerage firm by Transport Topics magazine
2015: Named a Great Supply Chain Partner by SupplyChainBrain magazine
2016: Receives SDCE 100 award from Supply & Demand Chain Executive magazine for top supply chain project
2016: Selected by Amazon® for its third-party Solutions Provider Network (SPN)
2016: Expanded services for the solar, aviation and pharmaceutical industries propel additional company growth
2016: Company celebrates its 20th anniversary!
“I am so proud of what our team has accomplished over the past 20 years. We’ve done a lot of cool things over the years, transporting everything from locomotives to solar panels. We have a lot of satisfied customers, both big and small, and we have a lot of pride in the work we do here,” said Jim Berlin, founder and CEO of Logistics Plus talking about the company’s success. “The ‘plus’ in Logistics Plus represents all of the extra things we do to help our customers be successful. Our slogan is ‘passion for excellence’ because of our drive to find ways of doing things better. The only plan we’ve ever had was to keep growing, take care of our customers, and try and figure things out as they come. We’re not your typical logistics company and, as goofy as it seems, it’s worked well for us. We’ve had 20 years of consecutive growth, and we’ve been profitable every single year. Logistics is in our DNA.”
To commemorate its 20th anniversary, and as a thank you to its customers, vendors and employees, Logistics Plus has released a new, online video in which employees discuss the company’s early years, rapid growth, and prospects for the future. The video can be viewed online at www.logisticsplus.com/20years (or by clicking below).
About Logistics Plus Inc. Logistics Plus Inc. provides freight transportation, warehousing, global logistics, and supply chain management solutions through a worldwide network of talented and caring professionals. Founded in Erie, PA by local entrepreneur, Jim Berlin, 20 years ago, Logistics Plus is a fast-growing and award-winning transportation and logistics company. With a strong passion for excellence, its 400+ employees put the “Plus” in logistics by doing the big things properly, and the countless little things, that together ensure complete customer satisfaction and success.
The Logistics Plus® network includes offices located in Erie, PA; Alma, AR; Little Rock, AR; Los Angeles, CA; Riverside, CA; San Francisco, CA; Visalia, CA; Atlanta, GA; Chicago, IL; Detroit, MI; Kansas City, MO; Charlotte, NC; Lexington, NC; Buffalo, NY; Cleveland, OH; Charleston, SC; Greenville, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Houston, TX; Laredo, TX; Madison, WI; Bahrain; Belgium; Canada; Chile; China; Colombia; Egypt; France; Germany; India; Indonesia; Kazakhstan; Libya; Mexico; Poland; Saudi Arabia; Turkey; and UAE; with additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.
Logistics Plus media partner, WP$E radio, continues to air short audio clips from 
ERIE, Pa. (August 23, 2016) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, is celebrating its 20th anniversary this month. Two decades of growth and experience have transformed Logistics Plus from a three-person operation, supporting the GE Transportation division of General Electric, into a $135 million global solutions company with over 400 employees in 20 countries serving thousands of customers around the world.