Ryder takes steps focusing on U.S.-Mexico cross-border offerings and nearshoring

Taking steps to further increase its United States-Mexico cross-border logistics operations, Miami-based freight transportation and logistics services provider Ryder System Inc. announced today it has opened up a new multiclient warehouse in Laredo, Texas, and expanded its Nuevo Laredo, Mexico-based drayage yard.

Ryder officials explained that these moves were driven by the evolving dynamics of cross-border trade between the U.S. and Mexico, coupled with the ports of Laredo and Nuevo Laredo representing the top inland transborder trade port between the U.S. and Mexico, in tandem with Mexico now being the top trading partner of the U.S. in 2023.

The company’s new 228,000-square-foot multiclient warehouse and cross dock in Laredo is strategically located three miles from the World Trade Bridge on the U.S.-Mexico border with easy interstate access in both directions, according to Ryder. And it added that the facility is comprised of 102 dock doors, room for 143 trailers and is within a six-mile radius of Ryder’s other operations in Laredo, allowing for overflow and pooling of labor and resources for added flexibility.

The expansion of the Nuevo Laredo, Mexico-based drayage yard, said Ryder, will be key in streamlining cross-border freight transfer to U.S. drivers, in aligning with the company’s commitment to enhance efficiency in cross-border movements.

What’s more Ryder observed that Ryder Mexico manages almost 250,000 freight movements annually across the entire Mexican border, supporting customers in the automotive, industrial, technology, and consumer packaged goods industries. And it also operates five million square feet of multiclient and dedicated warehouse and yard space across Mexico.

Ryder Vice President of Supply Chain Operations for Ryder Mexico Ricardo Alvarez told LM that across the industry, Ryder is seeing the growth in nearshoring.

“We expect that to continue, as companies look to diversify and shorten their supply chains,” he said. “Manufacturing in Mexico is booming, which means brands need manufacturing support, warehousing and distribution, cross-border transportation, help with customs clearance, access to Foreign Trade Zones and programs/certifications, among other things. We have nearly 30 years of expertise in this area, so we’re well positioned to help our customers navigate the cross-border or nearshoring environment. We’ve been working on this expansion since late 2021/early 2022.”

What asked about the key benefits of these new cross-border offerings for Ryder's shipper customers, Alvarez said that nearshoring can save on transportation costs and speed products to market.

“Shippers don’t have to wait on slow moving ships or risk incurring storage costs at seaports, which can offset savings from manufacturing overseas,” he said. “And, of course, delays at sea may mean your product is unavailable to meet demand, which is especially problematic with seasonality. Shippers can also respond more quickly to changes in customer demand or market conditions. All of this leads to more resilient supply chains.” 

Looking ahead, Alvarez said that Ryder will continue to explore investing in other U.S.-Mexico trade ports where it sees similar needs and opportunities and where its customers need support.

“The borders in El Paso-Ciudad Juarez and Tijuana-San Diego are some good examples where we’re seeing increased nearshoring activities,” he said. “Expanding our capabilities is also something we are very interested in, so we continue to explore those opportunities.

A top priority is our people and technology, so we will continue investing in training and development of our engineers and logistics professionals, as well as in the technology that supports our operations to provide end-to-end visibility to our customers.”