Container trade between China and Mexico continues to grow, forcing carriers to introduce new services to meet increasing demand.
The ocean carrier Ocean Network Express (ONE), along with MSC, COSCO, and CMA CGM has become the latest shipping carrier to expand its capacity on the Asia-Mexico trade route, a move that seems likely to be imitated by other carriers in the near future.
Mexico has been gaining importance as a manufacturing hub and a substitute for China for many companies, specially those serving the North American market. This newly-created trend in the shipping industry has caused an expansion of capacity on this lane as more companies are responding to shifting trade patterns and emerging market opportunities, producing a surge in container traffic between Asia and Mexico.
ONE’s decision to add capacity follows similar moves by other major carriers.
MSC, for instance, recently launched new services catering to the Asia-Mexico trade. These developments indicate a competitive landscape where carriers are vying for market share in this growing trade corridor.
Freight rates on the Asia-Mexico route have reached a 20-month high, making the timing of these capacity additions significant. This increase in rates suggests strong demand for shipping services between these regions, likely driven by factors such as nearshoring trends and the ongoing reconfiguration of global supply chains.
Given the new service from all these carriers, along with their capacity, this could lead to better service quality as well as more options for shippers.
However, the high freight rates that have been ongoing for months also signal that demand continues to outpace supply, at least in the short term.
ONE being yet another carrier expanding its presence on the Asia-Mexico trade lane, it is clear that this trade route is becoming increasingly important in the global shipping landscape. The inclination reflects broader changes in international trade patterns, with Mexico’s growing role as a manufacturing and distribution hub for North America.
This progress shows the shipping industry’s ability to adapt in response to evolving market conditions and trade flows. Factors such as geopolitical and economic continue to shape global commerce. Carriers are expected to remain responsive in adjusting their service networks to meet changing customer needs and capitalize on emerging opportunities.
