Borderlands is a weekly recap of developments in the world of cross-border trucking and trade between the United States and Mexico. This week: Canada remains the United States’ largest trading partner ahead of Mexico; The Texas group acquires the heavy goods carrier United Vision Logistics; GM plans to expand EV production in Mexico; and the Chinese manufacturer announces the first factory in Mexico.
Canada remains the United States’ largest trading partner ahead of Mexico
Canada ranked as the United States’ top trading partner for the second consecutive month in November and has held the top spot year-to-date, according to the most recent data from the US Census Bureau.
Mexico ranked No. 2 as its total trade with the United States rose 6% year-over-year (y/y) to $62.4 billion in November, compared to the same period in 2022. China ranked third with $52.5 billion.
Mexico was the United States’ largest trading partner in September and August.
Canada’s total trade with the United States rose 5% year-on-year to $63.4 billion in November, with exports to the United States rising 7% year-on-year to $29.6 billion. dollars.
Crude oil ($8 billion), auto parts ($3.7 billion) and passenger vehicles ($3.2 billion) were three of the top commodities traded between the United States and Canada in November .
Trade between the United States and Canada for the first 10 months of the year totaled $733 billion.
Imports from Mexico totaled $36.8 billion in November, a 6.4% year-on-year increase from 2021. This is the lowest annual growth rate for imports in recent years. last 13 months. In October, US imports from Mexico increased nearly 18% year-on-year.
U.S. exports to Mexico totaled $29.6 billion in November, a 23% year-on-year increase from the same month last year.
Top goods traded between the United States and Mexico in November included auto parts ($8.6 billion), heavy trucks and buses ($3.8 billion), and passenger vehicles ($2.9 billion). billions of dollars).
Trade between the United States and Mexico for the first 10 months of the year totaled $718.3 billion. China’s year-to-date trade with America stands at $639 billion.
The U.S. trade deficit contracted by its widest margin in nearly 14 years in November as slowing domestic demand and rising borrowing costs slowed imports into the country, according to Reuters.
Total U.S. imports fell 6.4% to $313.4 billion, with consumer goods dropping 7.5% to $254.9 billion, its lowest sum since December 2020.
The Texas group acquires the heavy goods carrier United Vision Logistics
Houston-based Bluestem Equity has acquired United Vision Logistics (UVL), a transportation and logistics services provider with more than 100 facilities across the United States and a fleet of more than 1,200 owner-operators, according to a Press release.
The Lafayette, Louisiana-based carrier offers heavy, long-haul, and expedited shipping in the United States and Canada.
“The purchase of Bluestem allows us to partner with a leader in industrial services with similar goals and ambitions,” UVL President Colby Domingue said in a statement. “With our renewed focus on customers, employees and partners, Bluestem and UVL will work together to continue to build our company into a formidable presence in the logistics industry.”
Terms of the transaction were not disclosed. UVL has 982 trucks and 1,009 drivers, according to the Federal Motor Carrier Safety Administration.
Bluestem Equity, founded in 2021, is a private investment partnership focused primarily on operating and working with companies serving the industrial and construction sectors.
GM to expand electric vehicle production in Mexico, creating 4,500 jobs
General Motors is reportedly considering expanding production of electric vehicles at its existing plant in the city of Ramos Arizpe in northern Mexico.
Raquel Buenrostro, Mexico’s Minister of Economy, recently tweeted that GM would increase production of electric vehicles in the country after a meeting with company officials.
According to the tweet, the Ramos Arizpe plant will transition to 100% EV production this year and aims to begin full production in 2024. GM has also increased its workforce in Mexico by about 4,500 over the past six months.
The Ramos Arizpe plant produces the Chevy Equinox and Chevy Blazer vehicles. GM has four production plants in Mexico and employs about 7,000 people.
Chinese manufacturer announces its first factory in Mexico
Chinese company Noah Itech recently broke ground on a $100 million factory in the northern Mexican state of Nuevo Leon, according to a press release.
The new factory, which will create 100 jobs and should be operational by the end of the year, will be located in the municipality of Santa Catarina. The state of Nuevo Leon borders Texas and shares a border crossing with Laredo.
Noah Itech makes automation equipment, which is believed to be used by automakers such as Tesla and General Motors, according to El Economista. The company also produces electronic products used by Google and Facebook.
Tesla, based in Austin, Texas, has also reportedly acquired land in Nuevo Leon and is set to announce a plan to build a factory there.
Watch: Is there a doomsday clock on ocean contracts?
Click for more FreightWaves articles by Noi Mahoney.
More articles from Noi Mahoney
Port Houston moves forward with resort fees after delay
Locus sees major opportunities in the Mexican e-commerce market
Borderlands: Xometry CEO Predicts US Manufacturing Expansion