Nearshoring leads to boom in Mexican heavy cargo sector

The project cargo sector in Mexico is booming these days, thanks to the country’s steady economic growth, which is primarily caused by the trend of nearshoring.

In recent years, Mexico has become a major production hub for many of the US industrial holdings and corporations, mainly due to lower costs and a generally good business environment. The transfer of production sites contributed to the growth of the country’s project cargo sector, which, in the last two decades, has grown by two times compared to the end of the 1990s. While the growth rate has significantly slowed in recent years, the industry still shows a positive dynamics.

According to the latest data from the Mexican research agency Engen Capital, the overall value of the Mexican freight transportation sector is estimated at US$98 billion, of which a significant part accounts for the segment of project cargo transportation. Currently, the segment’s share is constantly growing due to the stable demand for the delivery of oversized cargo within the country, primarily due to the activities of the US business.

That leads to revenue growth in the sector despite the high level of inflation and the ongoing growth of tariffs.

Engen Capital’s data reveals that after an 8.4% surge in 2022, revenue growth in 2023 moderated to 5.2%. However, the industry is poised for further expansion this year, with current revenue surpassing pre-pandemic levels and future expectations remaining optimistic.