The 2021 freight market could be one of the most important in years as the transportation and trade community attempt to recover from the impact of COVID-19.
Cross-border shippers, carriers and third-party logistics providers also will have to navigate new trade policies after President-elect Joe Biden takes office and perhaps alters international trade relations with countries like Mexico and China.
FreightWaves recently caught up with David Henry, regional manager for Mexico at GlobalTranz, who offered his observations on various topics to watch out for this year.
FreightWaves: What is the cross-border freight outlook for 2021?
Henry: Freight demand will continue strong throughout 2021. Additionally, with COVID-19 continuing to disrupt supply chains, we’ve seen shippers overwhelmingly seek out a trusted and reliable Mexico 3PL partner to support them in managing their cross-border needs.
FreightWaves: What types of loads will do well in 2021 for cross-border freight? Cars? Auto parts? Electronics?
Henry: Mexico will do well across the board. With the United States-Mexico-Canada Agreement (USMCA) in full force, production output is only headed in one direction in most industries.
FreightWaves: Do you think the cross-border market will see more of an impact from USMCA rules changes during 2021? The expectations were that USMCA would increase annual U.S. exports to Canada and Mexico significantly.
Henry: Investment in Mexico and demand for exports will continue to move in an upward trajectory. We expect this to significantly increase between mid- to late-2021 as the global pandemic gets under control.
FreightWaves: What is GlobalTranz’s strategy for 2021? What advice do you have for shippers/clients?
Henry: We continue to remain focused on being a strategic partner to our customers by focusing on value beyond price and driving their competitive advantage through tailored supply chain solutions. My advice to shippers is to be prepared, work with a trusted 3PL partner to plan ahead and navigate the complexities of today’s global supply chains.
Click for more FreightWaves articles by Noi Mahoney.
More articles by Noi Mahoney
185 Texas workers laid off from metal supplier