Mexico Transportation

Market Update

February 24, 2023

Mexico Transportation Market Update

This Market Review Update is intended to provide you with high-level macroeconomic and general industry data that
may be relevant to your business. This update should not be used for any other purpose. This update does not state or
imply anything about Schneider’s performance, results, operations, strategy, projections or plans. The purpose of this
update is to relay statistical and relevant facts from various industry professionals. This update does not predict or
forecast any economic or industry outcome or results. This update has been prepared on the basis of information made
available by third parties; Schneider has not attempted to independently verify any such third-party information.

For the latest information and updates, visit Schneider’s Trending Topics page.
Upcoming Schneider Events: Nearshoring Your Supply Chain

Organizations that are shipping across the U.S.-Mexico border are taking notice that constant evolutions such as shifting
demand cycles, changing economic conditions and rising inflation are requiring changes to their supply chain strategy.

These market challenges have led many shippers to consider adding a nearshoring solution to their supply chains.

During the following events, Schneider will bring cross-border shippers together to dig into their nearshoring supply chain
challenges and solutions to optimize their supply chain.
Learn more about the two upcoming events available below.

Join Us for the Virtual Event

Join Us for the In-Person Event

 Mexico Northbound flows significantly outpace Southbound flows…
we refer to this as the NB/SB gap
Import/Export Over the Road Values – Port of Laredo
2022 FY Gap: 44.6%
Source: National Institute of Statistics and Geography (INEGI) – Feb’23
* Port of Laredo (WTB & Colombia) values as reported by INEGI / Banco de Información Económica
The National Institute of Statistics and Geography in
Mexico, known as INEGI, has now released all of the
import/export values for 2022.
The full year 2022 gap reached 44.6%, up from 38.9% for
2021. The gap in Q4 2022 reached 47.5%.
– Exports increased 21.3% year over year
– Imports increased 16.6% year over year
To put that in perspective – for every southbound shipment
into Mexico, there are close to double that amount flowing
northbound to the U.S. This can be much greater in specific
markets, such as Monterrey and Saltillo.
2022 also went down in the books as one of Mexico's best
years in terms of capturing Direct Foreign Investments. FDI,
which totaled $35.3B, grew 12% versus 2021. The
manufacturing sector captured 36% of the total investments
followed by the transportation sector with 15%.
Nearshoring boosts appliance manufacturing in Mexico
According to Forbes Mexico, industrial regions in Mexico are becoming much
more important manufacturing hubs for household appliances. This is due to
nearshoring and the United States Mexico and Canada (USMCA) Agreement.

The director of the Nuevo León Home Appliances Cluster (Clelac), Yoelle
Rojas,told Forbes México that Mexico is taking advantage of the nearshoring
trend within the production and investment. He believes there will be an 8%
growth in these areas.

Read More Source: mexiconewsdaily.com; 01/27/23

Mexican Nearshoring Opportunities Seen Spurring Energy Needs
Industry Exchange LLC’s 8th Mexico Infrastructure Projects Forum kicked off
with Nuevo León Economy Secretary Iván Rivas, stating that Mexico will do
everything they can to take full advantage of the US companies moving their
operations from Asia to Mexico.

Riva’s noted that natural gas is the base of the nation’s electric power system,
but that they do face challenges with transmission and distribution.

José María Lujambio, partner and energy practice director at Cacheaux,

Cavazos & Newton, shared his thoughts saying, “nearshoring is the type of
opportunity that comes once every 100 years. It has to do with a reshaping of https://www.mexicogassummit.com/fullscreen-page/comp-jihwti7o/e21f991f-3210-
4a06-911d-feaffbfbdae1/88/%3Fi%3D88%26p%3Dcj9s8%26s%3Dstyle-jihwti25

the global order.”

Read the article Source: naturalgasintel.com; 02/02/23

44 factories and distribution centers move out of Asia to Mexico
Due to the advances in nearshoring in 2022, a group of investors from
China Taiwan, Japan and South Korea moved 44 factories, production
lines, and distribution centers from Asia to Mexico.

These investors made the decision to move these facilities for many
reasons. A few being, to lessen the effects of the US-China trade war,
improve the supply chain issues due to Covid-19, and the global
economic recession. Nearshoring started to gain its popularity and draw
about a year ago due to the same issues.

Read the article

Source: mexicodailypost.com; 02/01/23
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