For a few months now, the world has experienced an economic crisis where Mexico and its logistics industry haven’t been the exception. Unexpected events like the pandemic have affected every single economy. Yet, today we can observe an encouraging trend and we’ll tell you about it in this article.
The value of commercial exports
Together with private spending, investment and government expenditure, exports are one of the main drivers for economic growth in any country, favoring the commercial balance, the balance of payments and the current account of an economy.
Everything begins at company level, where trade exports bring benefits such as:
Larger capacity to generate employment
Risk diversification when there are unstable domestic markets
As for SMEs, exports can mean reaching higher growth and decreasing their failure probability by 9% with relation to non-exporting companies in the same category.
They consolidate any company and enable it to grow, especially when domestic markets are highly competitive.
The company projects a better reputation towards banks, vendors and clients.
Imports and exports in Mexico
Given the prevailing conditions, foreign trade is one of the key tools to boost Mexico’s economic growth.
In this regard, Fernando Ruiz Huarte, General Director of the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE, in Spanish) highlighted that when comparing the export results of December 2019 with December 2020, the latter outdid 2019 exports with numbers that could even set a record.
Considering this precedent, the remarkable rise in exports in 2021 doesn’t come as a surprise: only in January this year, foreign trade has grown by 4.9% in comparison with January last year.
In line with these figures, according to Caintra, exports are projected as a driver for economic recovery in 2021, representing 36% of the GDP and a primary input in terms of job creation.
If the market conditions reflect the forecasts, by the end of this year, exports will have reached a growth of 9%.
However, another crucial factor for the development of this sector is the US economic recovery since both importing and exporting national products are strictly linked to the circumstances that affect or benefit our neighbor’s economy.
The role of logistics companies in foreign trade
Due to the changes that took place in 2020, business logistics oriented towards foreign trade suffered numerous affectations, among them a limited capacity of port warehousing, the need of more alternatives in sea lines and information on itineraries, port congestion and availability.
Consequently, another important challenge for business logistics is failing to stick to itineraries, whose impact is estimated at 50% globally, increasing transportation costs and at times, losses resulting from damaged goods.
Similarly, logistics and distribution tasks encounter a new difficulty with the reduction in the number of commercial flights and their available cargo capacity that may presumably raise transportation rates.
But even in such an intricate scenario as the one we’re living in, foreign trade can offer invigorating developments, as is the case of Mexico. On this note, the work performed by logistics companies turns out to be decisive for profitable and hassle-free commercial exchanges.
Hence the importance of the specialized consultancy a freight forwarder can provide for everything related to the logistics process, from appropriate packaging for each type of goods and their warehousing, route status information, means of transportation and law compliance, among other issues.
Since the logistics sector provides vital solutions to reactivate the Mexican economy, today more than ever it is critical for companies to resort to a freight forwarder or logistics operator that can handle their cargo professionally, ensuring the goods are delivered to clients safe and sound.
At Akzent, our more than 20 years’ experience in logistics and distribution allows us to ensure your trade relations are more than successful in and outside of Mexico. At Akzent, we connect every move.