What does the future hold for logistics?

future for logistics

The COVID-19 pandemic has shown what an important component the logistics sector is to the world. At the end of May 2020, e-commerce sales achieved record growth (£2.1bn up from £1.3bn from the year before) as organisations adapted to coping in the challenging social and economic environment. According to the Office for National Statistics, the last and first time online sales broke the £2bn mark was in December 2019. As companies seek to make their supply chains more efficient, the adoption of digitisation, mechanisation and automation into operations is becoming more prevalent.

Having dealt with the unprecedented global circumstances well, the logistics industry will have to monitor the upcoming challenges that manufacturers face over the next 12 months. This is due to the current environment where the global demand for some products has diminished. It is expected that in the short-term, this will restrict the industrial space to reach the record levels of occupational activity that were anticipated in 2020.

According to Colliers International, it is expected that online demand will outstrip demand for warehouses. Consumers are thought to be more used to purchasing goods online and occupiers must be able to adapt accordingly, and will see supply chain models reviewed in a bid to scale capacity.

Demand for urban logistics has significantly increased over the past five years up until the outbreak of COVID-19. Due to the initial disruption, there was reduced activity for smaller distribution warehouses as some occupiers took a pause from their expansion plans. However, despite this, the market grew as larger distribution warehouses reached 100,000 sq.ft or greater during Q2 2020. Colliers expect demand for units sized between 30,000 sq.ft and 150,000 sq.ft located in proximity to urban town areas, will return as businesses transition from crisis management mode to future planning.

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Tesla Moving to Texas? San Antonio Wants In, Local Leaders Say

Tesla moving to Texas

Following news that Tesla could be moving to Texas in or near the Austin area, the San Antonio Economic Development Foundation is hoping to sway the Silicon Valley-based electric vehicle company to plant its latest electric cybertruck factory closer to San Antonio.

“San Antonio’s expertise in the cybersecurity and automotive manufacturing sector strengthens Austin’s value proposition as a technology leader,” said Jenna Saucedo-Herrera, president and CEO of the local economic development agency. “We will continue pursuing Tesla as they consider all of their location options in the great State of Texas.”

Tesla CEO Elon Musk recently tweeted he plans to move Tesla’s headquarters from California to Nevada or Texas, following California’s response to the coronavirus, which he criticized as overreaching.

Texas formerly lost out on Tesla’s $5 billion lithium-ion battery plant in 2014 to Reno, Nevada.

The Interstate 35 corridor would present a unique opportunity for Tesla to accelerate its administrative, tech, and manufacturing operations, Saucedo-Herrera said.

The possibility of Tesla planting roots in Texas is an exciting proposition for San Antonio’s technology sector, local tech industry leaders said.

David Heard, CEO of local technology workforce advocacy group Tech Bloc, said the move would be very beneficial for all of Central Texas, including San Antonio, should Tesla follow through.

“San Antonio can supply some of the Tesla workforce as well [even if it does choose Austin],” Heard said. “We have the Alamo Colleges District, which has lots of programs set up to train talent for manufacturing jobs.”

With local manufacturers already present in or near San Antonio such as Toyota, Boeing, and Caterpillar, a move near or between San Antonio and Austin would make sense, he said.

A move away from California’s Silicon Valley would not only be “a huge validation of Central Texas as a massive mega-hub for innovation and for software development,” but “would say a lot about Texas and our economy,” Heard said.

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CBP Launches the United States-Mexico-Canada Center to Coordinate Implementation of USMCA

Originally posted on the CBP website.

WASHINGTON— To help coordinate implementation of the United States-Mexico-Canada Agreement, which enters into force on July 1, U.S. Customs and Border Protection recently opened the USMCA Center.

Staffed with CBP experts from operational, legal, and audit disciplines, as well as in collaboration with Canadian and Mexican customs authorities, the USMCA Center is a cornerstone of CBP’s USMCA implementation plan and will serve as a central communication hub for CBP and the private sector community, including traders, brokers, freight forwarders and producers, ensuring a smooth and efficient transition from the North American Free Trade Agreement to USMCA.

“The Center is integral to successful implementation of USMCA, as it will focus on outreach, training, and developing new regulations and procedures, while providing consistency and transparency to the trade community,” said Brenda Smith, Executive Assistant Commissioner of CBP’s Office of Trade. “This all comes down to making sure that American consumers get their goods safely, securely and predictably, while protecting the economic security of the United States.”

USMCA is a new trade agreement that modernizes certain NAFTA provisions, reflecting developments in technology and 21st Century supply chains.  USMCA calls for new approaches to rules of origin, agricultural market access, digital trade, and financial services while protecting the labor rights of workers in key industries, and strengthening the protection of intellectual property rights.

The USMCA Center staff will be CBP’s experts on the trade provisions of USMCA, providing guidance to private and public sector stakeholders. Center staff will facilitate a smooth transition from NAFTA by coordinating and scheduling outreach events, responding to training requests, developing and distributing information resources, and updating CBP regulations on pending USMCA topics/issues, while also providing clear and transparent technical guidance on USMCA’s new compliance obligations. Center staff will work closely with Centers of Excellence and Expertise and the ports to ensure CBP’s implementation is uniform and supports U.S. economic security.

Please note: NAFTA rules will continue to apply until July 1 when USMCA enters into force.

Additional information about the agreement, compliance guidance, and implementation efforts may be found on the agency's USMCA webpage. Inquiries for the USMCA Center can be directed to USMCA@cbp.dhs.gov.

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Port Laredo once again the nation’s No. 1 gateway for international trade

Port Laredo

Originally Published in FreightWaves

Port Laredo has regained the No. 1 spot among the nation’s 450 international gateways for trade, topping the Port of Los Angeles for the second time in a year.

During February, Port Laredo recorded $18.6 billion in two-way trade, while the Port of Los Angeles had $17.2 billion, according to the latest U.S. Census Bureau data analyzed by WorldCity.

Port Laredo’s new ranking is tied to the ongoing U.S.-China trade war and the coronavirus pandemic that has hurt the Port of Los Angeles, said Ken Roberts, an economist at WorldCity.

“A stunning development the first time, the result of the impact of the U.S.-China trade war on the [Port of Los Angeles], this time it’s the one-two punch of the ongoing trade war and the coronavirus pandemic that has sent it, the U.S. economy and the global economy, reeling,” Roberts said in Forbes.

The Port of Los Angeles fell to second, largely because of its dependence on Chinese imports, Roberts said. The ports trade with the world declined 15.2% in February, according to WorldCity.

Port Laredo, located in South Texas along the U.S.-Mexico border, is made up of four international vehicle bridges, one international rail bridge and an international airport.

Around 16,000 trucks cross the port’s bridges daily, totaling $231.58 billion in imports and exports in 2019.

Port Laredo previously surpassed the Port of Los Angeles in March 2019 as the nation’s number one trade hub. It was the first time in the port’s 168-year history that it ranked first. The Port of Los Angeles regained the top spot a month later in April 2019.

Roberts predicted that Port Laredo will be the leading trade port for the foreseeable future due to its proximity to Mexico, the U.S.-China trade war and the lasting effects of the coronavirus.

Mexico finished 2019 as the leading U.S. trading partner for the first time in history and continues to be the nation’s top trading partner for the first two months of 2020.

“This time, unlike last time, it is not likely to be a one-month aberration,” Roberts said. “Port Laredo passed the Port of Los Angeles before the full brunt of the impact of coronavirus would have even hit the Los Angeles seaport.”

Ventus Global Logistics is open for business and ready to provide your business with all of its customs and logistic needs. Ventus Global Logistics is headquartered in Laredo, TX with offices in Nuevo Laredo and Monterrey, Mexico. Contact us for a free consultation.

What Does the New USMCA Look Like for Mexico?

USMCA

August 2017, trade negotiators from the United States, Mexico and Canada met for the first time in Mexico City to begin hashing out a new North American Free Trade Agreement.

Two and a half years and many negotiations later, the U.S.-Mexico-Canada Agreement (USMCA) has finally passed both chambers of the United States' Congress. The agreement — which overhauls North America's trade relations — is now poised to become U.S. law and the region's governing economic framework, as Mexico's Congress has already passed the deal and Canada's Parliament is expected to follow suit in late January.

While the political negotiations are wrapping up, the next and final step will be the agreement's implementation across North America.

In the coming months and years, these new rules will shape the region's trade realities. Some rules may unleash investment, trade and better labor conditions, but they likely won't be without additional hurdles. In Mexico, the agreement will touch most parts of the country's $1.15 trillion economy, but it will be felt most immediately and strongly in the overall investment climate, the automotive manufacturing sector and in labor conditions.

USMCA Provides Predictability

While less tangible, the agreement's biggest shift will take place at the macroeconomic level, as the USMCA solidifies trade rules and provides greater certainty for North American businesses operating across the continent. Ever since the USMCA's negotiations began, the economic climate has been wracked by uncertainty, especially when specific issues threatened to derail the agreement or every time that the U.S. administration threatened to pull out of NAFTA without any viable alternative.

With the USMCA in place, Mexico has a stronger investment framework and more transparency, clarity and protections for businesses operating in the country.

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Texas No. 1 in foreign trade during third quarter

foreign trade

Texas continues to be a leader in international trade, ranking No. 1 in exports of manufactured and non-manufactured commodities for the third quarter, according to the U.S. Census Bureau.

Year-to-date, Texas has exported an estimated $155.8 billion in manufactured goods and $68.7 billion in non-manufactured commodities, ranking it No. 1 in both categories among U.S. states.

The four top states for exports of manufactured goods year-to-date after Texas are California at an estimated $93.7 billion; Michigan, $39 billion; Illinois, $38.8 billion; and Ohio, $35.5 billion, according to the U.S. Census Bureau's Exports by Metropolitan Area Report released on Dec. 19.

Mexico was the top destination for exports from Texas at $109.7 billion in 2018, representing 35% of the state's total goods exported, according to the census bureau report as well as data from the Office of the U.S. Trade Representative. Canada was second at $27.5 billion.

Texas has accounted for 16.5% of U.S. exports of manufactured and 34.9% of non-manufactured goods so far this year, according to the bureau's report.

The top manufactured commodities exported by Texas include crude oil and petroleum, propane, liquified natural gas and parts/accessories for automatic data processing machines. The top non-manufactured goods produced in Texas include cattle (beef), cotton, chickens, greenhouse and nursery products and dairy products.

The top imports for Texas during the third quarter were crude oil, computers, car engines, cars and car parts and cell phones.

Houston was the top U.S. metro area in terms of exports in the third quarter at $31.3 billion, according to the study. Houston's economy is closely tied to the energy industry, particularly oil and liquefied natural gas.

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Ventus Global Logistics is strategically located in Laredo, Texas and specializes in land, air, and ocean freight. Ventus Global Logistics maintains a brokerage presence in all of Mexico's main customs offices. Get comprehensive data on your material inventory whenever you need it thanks to our web portal. Contact us today for a free consultation.

Trump’s new USMCA trade deal looks a lot like NAFTA. Here are key differences between them.

USMCA Trade

President Trump and House Speaker Nancy Pelosi on Tuesday announced a deal on the United States-Mexico-Canada Agreement (USMCA) that will bring it to a vote in Congress and remove the last barrier to enact the trade pact. The Wall Street Journal reports the vote will be held next week.

The agreement between congressional Democrats and the White House comes after rounds of negotiations that stretched for more than two years between US, Mexican, and Canadian officials. Their intention to redraw the North American Free Trade Agreement, or NAFTA - the trade deal regulating international business around North America for over a quarter-century.

Trump tweeted early Tuesday morning and championed Democratic support for the deal, calling it a win-win for everyone in the United States.

"It will be the best and most important trade deal ever made by the USA. Good for everybody - Farmers, Manufacturers, Energy, Unions - tremendous support," Trump said. "Importantly, we will finally end our Country's worst Trade Deal, NAFTA!"

It was held up in the US as Democrats, particularly progressives, demanded tougher labor and environmental protections and stronger enforcement provisions. They were able to lock in those additional rules sought in the emerging deal.

The three leaders - President Donald Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto - signed the agreement late last year but final revisions must also be approved by each country's legislature and leadership before it comes into effect. Mexico ratified the agreement in June and Canada is on its way to doing so.

Congress is expected to pass the agreement with bipartisan support, giving the president a major trade victory as he attempts to fight off Democratic-led impeachment proceedings and campaign for reelection.

Trump and other US officials have long called NAFTA dead, saying the USMCA is a wholesale overhaul of the agreement. Despite Trump's declaration, the USMCA still maintains large swaths of the original deal and is more of an update to the existing deal than a full-on rewrite. But there are some key differences.

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Ventus Global Logistics is strategically located in Laredo, Texas and specializes in land, air, and ocean freight. Ventus Global Logistics maintains a brokerage presence in all of Mexico's main customs offices. Get comprehensive data on your material inventory whenever you need it thanks to our web portal. Contact us today for a free consultation.

Port San Antonio OKs Pact to Develop Innovation Center

Port San Antonio, TX

Port San Antonio's board of directors on Wednesday took the first steps toward building a new facility that leaders of the sprawling industrial campus in South San Antonio hope will make it a destination for sports enthusiasts, science education, and innovation.

The board voted unanimously at its monthly meeting to contract American Triple I Partners, a local development firm chaired by former Mayor Henry Cisneros, to lead the design and construction management efforts for an innovation center to be constructed on the 1,900-acre Port San Antonio campus.

The Port's leadership plans for the center to host esports tournaments, conferences, concerts, and other events. In addition, it will serve as the home of the San Antonio Museum of Science and Technology, or SAMSAT, which houses artifacts and gadgets from the technological past, as well as showcase technology built by Port tenants.

Co-working space and a makerspace, for building devices and working on other projects, will serve both early-stage entrepreneurs and students on the innovation center grounds.

The center will also procure food and beverage vendors.

"We want this facility to represent not just what the Port is today, but what the Port is striving to be and what San Antonio is striving to be – a truly first-class facility," said Jim Perschbach, the Port's president and CEO.

The draw of the gaming community is expected to be the main revenue driver at the facility. Perschbach cited market research that predicts esports will trump the income potential of all sports except the NFL. The global esports market is expected to reach $3 billion by 2025, according to recent analysis.

In early 2018, Perschbach took the reins of the Port, a public entity created in the wake of the 2001 closure of Kelly Air Force base, with the charge from board members to pursue a vision that reimagined the Port as a high-technology hub to complement its traditional tenants in the manufacturing, logistics, aviation, and defense sectors.

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Chick-fil-A and Starbucks Distributor to Move California Headquarters to Texas

Distributor to Move California Headquarters to Texas

A distributor to move its corporate headquarters to Texas from California to centralize its operations. The organization is a distributor to major restaurant chains such as Chick-fil-A, Chipotle and Starbucks.

Quality Custom Distribution is a part of Golden State Foods, and a global supplier to the quick-service restaurant and retail industries. The organization is leasing 10,784 square feet of office space at 2801 Network Blvd. in Frisco, Texas. Frisco is 27 miles north of downtown Dallas, for its headquarters. It sets the new office to open in January 2020.

The company expects some employees to move from California to Texas with the corporate headquarters. Also, they have plans to "provide a variety of new jobs," at the Dallas-area office.

The company has already begun posting job openings in Frisco, which include finance, accounting, customer service and purchasing positions. Quality Custom Distribution has 17 active job postings on online job websites. Officials were not immediately available to comment beyond a statement.

The move from Irvine, California, helps centralize the company's corporate operations. It better aligns and supports its distribution center market and its customers, said Ryan Hammer, corporate vice president and president of Golden State Foods Logistics.

The distributor to move from California Headquarters to Texas will grow its distribution network and secure its position as a main player in the food industry. The Dallas-area's central location, large talent pool, and business-friendly community fed into the decision to move to the North Texas region said, Hammer.

The company's distribution network includes two centers in Texas, one in the Dallas area and another in San Antonio. The Dallas-area location sits in Lancaster at 3900 N. Dallas Ave., which is 14 miles south of downtown Dallas. According to CoStar data, Quality Custom Distribution leases about 55,000 square feet of industrial space in the building.

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Ventus Global Logistics is strategically located in Laredo, Texas and specializes in land, air, and ocean freight. Ventus Global Logistics maintains a brokerage presence in all of Mexico's main customs offices. Get comprehensive data on your material inventory whenever you need it thanks to our web portal. Contact us today for a free consultation.

Experts say Nuevo Laredo should focus on becoming a logistics and foreign trade hub

Laredo Texas

The Mexican border city of Nuevo Laredo should "bet more on logistics and foreign trade" than on attracting more maquiladoras, according to trade experts.

"Nuevo Laredo no longer needs to invest in maquiladoras, because it is a city more oriented towards customs and services," said Cirila Quintero, a professor at El Colegio de la Frontera Norte (College of the Northern Border) in Tijuana, Mexico.

The college is a prestigious Mexican institute specializing in teaching and research on border issues. Quintero specializes in the research of Mexico's maquiladora industry.

Quintero was part of a recent study conducted by the Mexico City-based Economic Information Bank (BIE), which indicated in recent years the number of export maquiladoras in Nuevo Laredo has decreased.

Quintero said one reason not to rely too heavily on maquiladoras for economic growth in the future is changing technology.

"I think that if local governments want to bet on the maquiladoras, they should understand that the maquiladoras have already changed and are something else," Quintero said in an interview with Primerahora.com.

Quintero added, "the only ones [maquiladoras] that are going to exist are the ones that are going to export, and many of those are going to be robotized, and the point is that if you want to invest in maquiladoras, you should no longer see them at the local level, but in the case of Nuevo Laredo you have to see Laredo, Texas, and see which sectors in Laredo are developing the most."

Nuevo Laredo – located directly across the U.S.-Mexico border from Laredo, Texas – has 35 maquiladoras that employed 29,878 workers, according to the BIE study. In contrast, in the Mexican cities of Reynosa and Matamoros, maquiladoras are still trending upward.

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Ventus Global Logistics is strategically located in Laredo, Texas and specializes in land, air, and ocean freight. Ventus Global Logistics maintains a brokerage presence in all of Mexico's main customs offices. Get comprehensive data on your material inventory whenever you need it thanks to our web portal. Contact us today for a free consultation.