Ryder expands operations on U.S.Mexico border as nearshoring trend grows
Ryder System Inc. has opened a new logistics operation in Laredo, Texas, and expanded its drayage yard in Nuevo Laredo, Mexico, to support growth in manufacturing and speed up border crossings. The move comes as U.S. companies apply "nearshoring" strategies to shift production closer to home. Ryder's investment in response to increased trade between the U.S. and Mexico reflects a trend in the logistics industry.
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Ryder U.S.-Mexico Border Expansion FAQs
Ryder U.S.-Mexico Border Expansion FAQs
FAQ:
1. What recent expansion has Ryder System Inc. undertaken on the U.S.-Mexico border?
Ryder System Inc. has opened a new logistics operation in Laredo, Texas, in response to the growing trend of nearshoring. The company also expanded its drayage yard in Nuevo Laredo, Mexico. This expansion includes a new multiclient warehouse and cross-dock facility. (DC Velocity)
2. Why is Ryder expanding its cross-border footprint?
Ryder is expanding its cross-border footprint to support growth in nearshoring, which is the practice of transferring business operations to a nearby country, often to reduce costs and improve supply chain efficiency. The expansion helps Ryder better serve their customers' needs in managing cross-border and nearshoring logistics. (Yahoo Finance)
3. What benefits does Ryder's new facility in Laredo, Texas offer?
The new facility in Laredo serves as a strategic logistics hub due to its location at a top inland international trade port. It offers multi-client warehousing, cross-docking services, and an expanded drayage yard, improving the efficiency and effectiveness of cross-border trade activities. (DC Velocity)
4. How long has Ryder been working on this expansion?
Ryder has been working on the expansion since late 2021 to early 2022. The initiative has been focused on enhancing their service offerings to navigate the complex environment of cross-border and nearshoring transactions. (Supply Chain 247)
5. What is nearshoring, and why is it gaining popularity?
Nearshoring is a practice where companies move their operations to nearby countries rather than to distant ones to have more control over the supply chain, benefit from geographical proximity, reduce costs, and react more quickly to market changes. It is gaining popularity due to supply chain disruptions and an increased focus on reducing lead times and transportation expenses. For U.S. companies, nearshoring often involves moving parts of their operations to Mexico. (Supply Chain Brain)
6. How does the rise in U.S.-Mexico trade affect companies like Ryder?
The increase in trade between the U.S. and Mexico creates more opportunities for logistics and transportation companies like Ryder to provide specialized services that facilitate cross-border commerce. This includes supply chain solutions, warehousing, and logistics support tailored for the unique challenges of nearshoring. (Fleet Owner)
7. What should shippers know about nearshoring to Mexico?
Shippers should understand that cross-border supply chains have specific logistical complexities that require expertise in customs compliance, transportation management, and security. Embracing new technologies and working with experienced logistics providers like Ryder can help manage these complexities and ensure a seamless transition to nearshoring operations. (Talking Logistics)