Global liners flock to Mexico

Home Insights Global liners flock to Mexico

July 16, 2024

Global container liners are increasingly linking China with Mexico due to rising trade volumes. HMM, ONE, COSCO, OOCL, and MSC have launched new services. Trade between China and Mexico hit a record 563,829 TEUs from January to May 2024, up 28% from the previous year. This growth is driven by importers using Mexico to bypass US tariffs on Chinese goods and significant Chinese investments in Mexican manufacturing. However, concerns remain about Mexico’s port infrastructure handling the long-term surge.

What does this windfall mean for investors?

  • Increased Demand: The growth in China-Mexico trade routes suggests sustained demand for container shipping, offering potential for higher returns on investments.
  • Diversification: Investments in shipping companies with routes in this region can diversify portfolios, reducing dependency on traditional transpacific routes.
  • Strategic Positioning: Early investments in companies expanding in Mexico could yield significant long-term benefits as infrastructure develops and trade volumes continue to grow.
  • Tariff Bypassing: Mexico's role as a backdoor to the US market might stabilize demand, providing consistent shipping needs despite global trade tensions.

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