Logistics costs in Mexico were an estimated 9.9 percent of the nation’s gross domestic product, Armstrong & Co. said in a report on Mexican trucking, railroads and third-party logistics.
In the U.S., logistics costs accounted for 8.5 percent of GDP last year, according to the Council of Supply Chain Management Professionals’ annual State of Logistics report, produced by Rosalyn Wilson.
Armstrong’s report said nearly half of Mexico’s estimated $142.2 billion in logistics costs were in trucking ($68.4 billion). Inventory carrying costs were the second-largest component, at $37.3 billion.
Mexico’s trucking industry is led by 10 companies with annual revenues ranging from $90 million to $220 million. The largest, Autotransportes de Carga Tres Guerras, handles general freight, including less-than-truckload shipments and packages.
U.S. and international companies such as DHL, Werner and Ryder play important roles in Mexican logistics, Armstrong noted.
Automotive logistics has grown rapidly in Mexico since the 1994 enactment of the North American Free Trade Agreement. Twenty-five automotive assembly plants are scattered between Mexico City and the U.S. border, and more than 1,000 Tier 1 and Tier 2 suppliers are located in Mexico, Armstrong said.