The Logistics Hub Where Almost $1 Billion of Products Pass Through Daily | WSJ
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- Опубліковано 1 тра 2024
- Laredo, Texas, is primed to become one of the world’s most important supply chain hubs as companies around the world reduce their manufacturing reliance on factories in China and shift their production to Mexico. This has caused an explosion of trade between the U.S. and Mexico as more than 5.5 million trucks have crossed through the Port of Laredo in 2022 alone.
WSJ explains why Laredo’s strategic location has allowed it to become one of the world’s most important land ports and how it has helped fuel nearshoring.
0:00 Laredo is the hub at the center of a changing global market trend
0:48 The larger business strategy of nearshoring
2:33 Laredo’s strategic location as a land port
4:26 Laredo is adapting its infrastructure for large amounts of traffic
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#Laredo #Manufacturing #WSJ
That businessman who saw regionalization and nearshoring and invested in it, I wonder how he managed to see that 10 years ago.
Demographics and politics in China
@@stygian4011hindsight is 20/20 but very few people saw this happening 10 years ago. And no one could have predicted the Russia Ukraine war.
Xi became Chinese President and CCP chief secretary 10 years ago, enough said...😉
Easy my friend POLITIANS CHANGED EVERYTHING ON THEIR ONW CONVENIENACE SO NO MAGIC BALL IS NECESSARY TO FORESEE THOSE CHANGES.
He made a fair bet on general growth. He didnt bet on all this.
4:31 15,000 trucks is equivalent to about 200 locomotives for a 4 locomotive train hauling 300 cars 50 times. What we need to do is lower our reliance on semis and instead invest more in freight by rail.
Trains do look pretty neat
The shipping infrastructure is mixed btwn freight rail and semi trucks. Freight rail tends to transport goods that are not as time sensitive compared to trucks. And even if more of the shipping capacity got switched to freight rail, u still need trucks to pick up those loads at the freight rail yards and depots.
Plus the freight rail operators are notorious for overworking their personnel to the point where they barely get days off and vacations. So if u wanna switch more capacity to freight rail start by telling operators to hire more people and respect basic labor laws…
@@sioul8485 Oh, okay. Thank you for sharing that information.
@@sioul8485 more freight from monterrey mexico to laredo texas makes sense
Mexico should focus on manufacturing and take advantage of its neighbour. This will help the people improve their standard of living.
lol, you sound like someone totally ignorant to the fact that Mexico has ALREADY been doing that, and on top of that, regardless of the difficulties posed by the Narcos Mexico will be a Top 7 economy by 2050.
They are already doing that with the drugs and immigrants, products should not be a major issue at all
Whites hate seeing Mexicans get rich because there jealous.
@@rafa.frqnz1188 what do you mean the US is doing the opposite. AMLO is trying to ruin everything
If you were a 'realist' you'd understand that this is "empty moralistic talk". Mexico borders a world superpower, not exactly a comfortable position, if they were to seriously compete with their northern neighbours at some point, the megalodont would very quickly yet effectively put an end to it.
Mexico is America's future and it's a beautiful one. Yes it has high crime but China's wages have skyrocketed in recent years and now it is cheaper and more reliable to move American manufacturing to Mexico than to keep it in China. Mexico's manufacturing abilities are getting better and better. Its ability to make more advanced, higher end products has grown a lot. I love this. I'm not saying America should ship all its manufacturing to Mexico. I just want to see more of what is already outside of the US moved to Mexico if it's not coming back into America itself. That would help bring down crime and reduce poverty. That could reduce illegal immigration and improve American supply chains for regular businesses and national security. Mexico already relies on American oil. I hope the American government and individual Americans invest more in Latin America in general and people realize we can be pro America and pro south of the border at the same time. Also, speaking of investment, Mercado Libre is an amazing investment opportunity for years to come. I've made several thousand in the last 12 months from it. It's a kind of like the Amazon digital marketplace of South America. It's dominating Brazil but headquartered in Argentina.
this is just part of the reason that Mexico, despite problems with corruption and Narcos, will be a Top 7 economy by 2050. you should also bear in mind that Mexicans are largely NOT migrating to the USA anymore, whether legally or not. But yes, in turn the US and Mexico (and Canada tbh) should be investing in Latin America, this is a shared continent and our backyard if you will.
@@daharos Mexico is just awesome too. Like, people don't know how cool it is.
As MEXICO joins BRICS+ , it will no longer need the US DOLLAR
Today's manufacturing technologies and investment mostly depends on China than US. So in situation of economic war between USA and China Mexico should be very cautious to not let USA hurt Mexico's profit and opportunities
why did you write a book. wages in mexico will increase over time. trucking is more expensive and has longer lead time than shipping via ocean. not accounting for the limitations of the trucks
Neo Laredoan here, born just south of the border.
These twin cities (Nuevo Laredo and Laredo) always have had a very strong international trade background. Most of the people work in the industry (as a truckers, brokers, warehouse personnel, etc.)
Its nice to see the eyes of the world finally looking this way. Althoug billions of dollars pass thru this cities, none stay. Hopefully with the increase on trade the investment and development of the region grows, as life in Los Dos Laredos can be pretty stale sometimes. Well, at least once you get used to the shootings
They need to fix the crimes in your city otherwise it will never become a touristic area.
I went to Laredo about 10 years ago. Remember thinking this place is going to be one of the most important cities in the future. Let's help our friends in the south, win win for both US and Mexico.
Now that north america is nearshoring / friendshoring to Mexico i hope it improves the quality of life to the locals. And the government cracks down harder on the cartels.
C artels are as real as alquida n isis etc
Hate to be bearer of bad news, but the line b/w gov't and cartel is quite blurred. Also the cartel is BIG in the legitimate industries too that benefit from this.
Right. Cartel will soon get into business
Honestly if the source of wealth moves towards industry in Mexico it could remove some of the incentive for the authorities to work with the cartels and weaken their hold of the country in the long term.
Oh they will because money talks
The skyline and mountains around Monterrey look really cool.
Monterrey surpassed its sister city San Antonio in importance 30 years ago. Monterrey is like Austin and Dallas combined, quite the technological and economical power house.
Lol
Seems like a great place to put these trailers on trains and handle last mile via truck
If Mexico and the US fix its crime issues, it should be paradise on earth.
that won't happen. issues will always exist at the border
@@sinoroman I'm talking about violent crime. At least in Mexico violent crime is contained to drug cartels but in the US it's endemic to most regions.
fix it's crime issues? lol.. not with the drug demand here in the US.. $1 billion of products daily pass through daily.. how much drugs is accounted for in there? lol
@@IamLEGENDkb24 That's the point. Fix crime in both countries and it should be good. You don't see those drug addicted people in Mexico. I'm from Spain and we have Morocco in the South where most drugs coming to Europe are produced, but you don't see groups of people drugged on the streets in Spain. The US has a mental health problem it's not willing to talk about.. it's always the drugs and the guns to blame. There is also a certain demographic I can't name that is turning some areas into war-line zones.
It is the crime.
I'd rather send money to Mexico than the Chinese government.
you mean the cartels
@@jamessmith-hu4rp still better than the Chinese government
someone been watching too much US propaganda
@@sinoroman nope. Just someone who's not brainwashed by Russian/Chinese propaganda.
You're still sending money to China regardless of what you do lol.. they own manufacturing companies in Mexico.. many parts for these products are from China..
why not build a dedicated freight corridor? (rail)
8 more truck lanes and only 1 rail line? Why isn’t more of this cargo moving by rail? The emissions must be insane.
4:54
@@TheCelticsAREboss That doesn't answer the question. There should be even more investment in rail.
@@TheCelticsAREboss doubling the capacity of the rail bridge = 1 rail line.
@@jouaienttoi i'm sure they're going to invest more. they don't have to mention everything. business and politicians aren't dumb when it comes to maximizing efficiency/profits
@@Re_RAM pretty sure they're going to build more
Great video. Didn't realize Laredo was such an important trade route. Would be awesome to see Mexico become the next China in manufacturing, creating millions of jobs for Mexico, and lifting up the Mexican middle class. Everyone benefits the US, Mexico, and workers in both countries.
there's a lot of stuff Americans don't know, like Mexico is the U.S. largest trading partner in the world and has created millions of jobs in the U.S. becouse of exports to Mexico
lol this has been going on for 30 years... but when American media talks about Mexico is always about cartels, which I prefer that way, otherwise we are gonna get too many immigrants ...
I live in Monterrey (Mexico) and I am very proud of all this
Me too
Not me, but I do like Monterrey and I wonder why you don't see many foreigners there, aside from the Asians that live there already . I'm talking about tourists
@@ringodos-jj7eg Except for maybe Texans, most casual Americans and international tourist don't even know Monterrey exists despite how big it is population and economic wise. Mexico City and Guadalajara are more known by international tourist because they are historical cities with a deep colonial past, Monterrey doesn't have much of these historical tourist attractions like other Mexican cities. I compare Monterrey to Houston and Dallas, places that tourist don't desire to visit but lots of people move there for economic prosperity.
Where would be some good regions to buy an apartment there?
@@Jose-sy1je San Pedro Garza García, is the best city that exists in Mexico, cheaper costs than the USA but it is the city with the most security, quality of life and luxuries
There is another reason for it is that Products made in Mexico are covered by USMCA outside of that area you will have to pay tariffs
Tell the animator that I appreciated the little cable swing on that container crane
China still owns many of the manufacturing plants in Mexico and most of the parts for these products are still manufactured in China. China seems to have found an angle to circumvent the tariffs. Pretty smart
If the factories that supply US goods can be seized by US forces during a war with China.. then the US is fine with the arrangement.
It’s much easier to keep supply lines going from a Chinese owned factory in Mexico than it would be from a Chinese owned factory in China.
Im sure mexico doesn’t mind
@@adrianlemus2768 win win situation i guess. American consumers may have to pay a bit more, but may bring stability at the border with job creations.
China also manufactures fentanyl and other drugs for the cartels to bring to America
They really havent because the agree say how much needs to be produced in mexico. So rich chinese benefits. But the jobs are mostly going to mexican and american workers. Which primes china for revolt in the long term
It is vital for the US to fortify its links with Mexico and the rest of Latin America. Mexico should be a key partner given its proximity. Mutual growth.
such a great job covering so much detail in a concise video! Never heard of Laredo before. Also loved some of these video and drone shots that they got
One of those times when the news coming out of Mexico is positive and not about cartels and violence
Business journals usually focus on legitimate business and stories about the economy, not scandals and day to day violence.... so yeah.
@@malcorubthe day to day violence is a repellant to investments and improving quality of living.
I see this as a win for everyone. Mexico gets potentially tens of thousands of jobs while the USA gets a much more secure and friendly supply line
"Friendly" lol
I truly loved my stay in Laredo for 4 years! It is the most compact city with everything within a short drive but not congested except in the downtown area. Catholic churches are in every districts & corner. Religious catholic traditions still in practice here. They planned open parks & spaces including casa blanca state park. Lots of cyclists here. There are lots of gyms & indoor entertainment. This is a legit boomtown with an international airport. A solar energy field is being built. Grocery prices are the lowest in the whole US! Very active Social services. Sports, concerts & arts (including theater) are very alive, even the night life! Sister city festival & george washington weeklong celebration. School bands & beauty queens are a pride also if if this city. TAMIU university is a beautiful campus. Big library facilities in almost all districts. Because of big money inflows, covert corruption is being exposed in every news. Due also to a large volume of trucks, there are high chances that your car's windshield will be hit by a flying rock.
You need protestant churches down there. Catholic pro leniency ideology is one of the reasons for out of order society in South and Central America
Thankyou!! Much love!! We oír a big community and very family oriented
You ever stoped by Casa Blanca Ballroom? Z93.8?
It’s not compact at all, I hated driving everywhere. Such a small minded city with dated morals and values, glad I left.
Kinda upsets me that frieght rail was just an aftertought here. With this much manufacturing, you need trains
Exactly
Nearshoring is a common practice for many large corporations. It cuts costs and limits the time and resources exhausted in transportation costs.
It's the transportation part that's an issue with Mexico, which besides safety its geography isn't very conducive to developing a lot of rail corridors or seaports. But luckily the rising costs of doing business with China is making investments with Mexico more competitive.
It’s crazy how the city is so underdeveloped lol
It's kinda weird seeing a video about the city you live in, and seeing the college you are taking classes at
Congratulations, excellent economic news between Mexico and USA, Laredo it's the winner.
I’m really optimistic at where the US-MX relationship is going given the explosion in trade and industrial integration.
A more developed and integrated Mexico would be fantastic for both nations.
What about the republican call to invasion?
@@pottertheavenger1363at this point you reaching. Go home bro.
Man, a bunch of trucks going one way. Should build a train track
Laredo Texas proud
Clarification: Tesla is not relocating, they are expanding. The factory in Shanghai is staying open to produce cars for China and countries nearby, the new factory in Mexico will be to produce their next generation vehicle that no one outside of the company has seen yet. That will allow them to more easily ship cars to South America, than they can from the United States.
That's an ugly bottleneck on that highway. Of course widening it is the first thing Texas DOT thought of, instead of rail.
Trains, build more trains..
min 1:42 global to regional. yeah!
Ayyyyy where’s my Laredo family at? ✨
But a lot of raw material and basic components are still made in China,and many china company want to avoid trade tariff to sell products in US, so in the short term the factories in Mexico just play the role for final assembling.
that is slowly changing just like america used to make everything . companies are looking into supply chains and western companies are switching to india mexico vietnam and many other countries to make their products .
Not necessarily true, in order to be eligible for USMCA tariff reduction a percentage of product must be made in the region
Made in China will degrade over time as Mexican manufacturers develop themselves as replacements.
They are working on adding another international rail linecrossing right next to the existing one. This kind of thing takes forever but it's in the works.
Those images just tell me the issue is not having trains.
Laredo is a tiny city? "According to the 2020 census, the city's population was 255,205, making it the 11th-most populous city in Texas and third-most populated U.S. city on the Mexican border, after San Diego, California and El Paso, Texas."
Plus Nvo. Laredo is at 467,000 bringing the area population to over 700,000. Not tiny at all.
Texas is absolutely winning this century.
Not unless republicans like Abbot interfere with trade.
Laredo is the 10th biggest city in Texas. Why would you call it tiny?
87th largest in the US and probably 2000th world wide. It's pretty small in the grand scheme of things .
🤣
Tiny city is Eagle Pass.
Because all of us in Laredo have it tiny duh
The warehouse district along I10 between Katy and Brookshire west of Houston has exploded in last 10 years.
Texas is America's largest exporter now surpassing California.
They should build a train line to mexico
It is under construction, it will go from Canada all the way to Mexico uniting all of North America
@@8.4.8.2 which is dumb because we have natural one already called missippi without a weight limit but its not allowed. Ships in the missippii could carry way more and ship things from lousiana as far as montana
you’re over a century late to that idea
@Deon Robinson No. Once the barges get north of St Louis, a tow is limited to 15 barges because of the locks. Even then they have to be split to transit the locks. On the Missouri River, the can get as far as Sioux City, IA.
A video of my city nice!
Laredo residents suffer because this is priority here. Factories, paving and demolition of natural land to accommodate for this. Tractor trailers have hardly any limitations on where to drive. Thus making roads extremely uneven and dangerous. Insurance, housing and food is extremely high there. The city residents get nothing. Employees get paid very little and residents practically need to beg for any improvements of city development. Historical buildings are left to crumble and the city doesn’t invest a penny.
I didn't know we were nearshoring more. We might need the upgrade the highway infrastructure to move all those trucks
BIG BUSINESS!!!
Lessgoo Mexico 💪🏻
Mexico can do just as good as anyone else.
They forgot to mention the Santa Teresa Crossing in New Mexico. This is also important since in 2022 Texas shut down the border and forced every truck to be inspected, thus resulting in alot of delays and food to rot. This crossing gives mexico leverage in case texas starts their shenanigans again.
I don't get it. Laredo is in Texas.
not too much leverage
There are too many trucks in Laredo. Laredo, TX needs special or unique road conditions to accommodate the 15:1 truck to car ratio on a daily basis
what would be even better is a canal from the sea of cortez too the salton sea .
Go 2304!
IH35 needs an upgrade. 4 lanes all the way to Canada and double rail mainline to San Antonio and Houston
I live on the border city of El Paso Texas, the infrastructure is being built in the city to handle the large influx of products that will come from Mexico. Warehouses are being built in a crazy amount to store products as they pass the border and prepare for shipment. The federal government also plans on building a new border bridge strictly for trucks to cross over.
This will totally not spark any criminal thoughts about camping in that town waiting for trucks to pass by, definitely wouldn't happen...
My hometown Laredo , Texas
TAMIU is my college too.
I'm looking forward to all the influx of money to my home city (Monterrey)
Live in laredo and get excited when we get recognition 😂
Tiny city? Bruh, there’s 250+ thousand people in that city. Nothing tiny about that.
The Texas infrastructure is getting nervous, and so am I with my daily commute
6:20 what goods?
AT 6:02 to 6:10 time frame, the wareshouse developer said electronics go back and forth, 5 to 6 times, the finished products will be ready for the consumers, then it is not really efficiently at all.
Love the idea of replacing Made in China with Made in Mexico!
My home town!!
that is why they should open all the closes border railway corridors and add highways like I-11 and ....
Good jobs
These warehouses are filled up because people aren't buying things. People aren't buying things because many of us are still paycheck to paycheck and only buying the essentials.. But companies don't want to hear any sort of wage growth.
Viva México. I wish to see more manufacturing in central America as well. It will ease the large number of migrants. Lack of jobs in the south is directly correlated to the large number of migrants in USA
let's say $2B when adding the illegal goods
Laredo is also a major gateway for drug smuggling! Everything from pot to fentanyl and everything in between. The only reason to move American companies from the US to Mexico is the lower cost of wages and lack of unions. There is no such thing as OSHA in Mexico. I will bet you that for every 100 trucks that cross through Laredo one truck loaded with drugs gets through, not to mention the automobile and foot traffic that carries drugs.
So ?
Telling the obvious.
Its all part of the commercial influx.
You wanna Buy something, the market Will provide.
Wooo!!! all those bricks crossing the border !!!
I call it home now..
They really should just build a railroad to San Antonio, Austin or DFW... and to Houston for the east coast...
My hometown🥰
One more lane! One more lane! One more lane!
Why not have railway instead of all these trucks?? Isn't that more economical and environmentally friendly.
Laredo elite have been bragging about Laredo’s growth for quite some time now. This has unfortunately not translated to a better quality of life/life expectancy, instead poverty continues to increase. Given the commodities simply move through Laredo, the local’s working class income/purchasing power is historically below the median. There is “Growth” for a few executives and business owners who don’t even live or spend their time/money in the city, but no “growth” for the average working class constituency in Laredo(s).
This biggest organization doing trade was not mentioned in this video?!?!?
Looks like a giant conveyor belt would do more good than trucks. lol
I am loving this shift from China. I just hope we are completely decoupled from China in few years. India and Mexico are the only one who deserves our business.
Actually ocean shipping is more efficient. Each super container ship can carry over 200,000 containers, that'd take weeks to pass through a point on land.
Not if war breaks out. You're also ignoring the part where containers have to be transported to and from the ship.
21000 containers not 200 000
USA controls majority of the pacific ocean. reducing or limiting truck transport can save a lot of money
Expect many more Quiktrip gas stations in Laredo, Tx.
@3:30 "throughout the United States..." goes right into Canada haha
No difference
Focus on crossing El Paso TX and Santa Teresa New Mexico international ports. El Paso have I-10, I-25 and El Paso International Airport.
Isn't China building ports on Mexico west coast to get materials across to Texas border and I35 to distribute across US more easily rather than using ports in California?
The long term plan for the Texas 130 toll road was to have it run from Laredo to Dallas with an inland intermodal port somewhere along the way.
🎵 As I walked out in the streets of Laredo
As I walked out in Laredo one day...
Laredo is becoming a major landport and they are not even expanding the bridge.
How about trains?
the video is about freight and the sign to loredo has boxing world champions and i was like what is that like fasted to box stuff and im an idiot
Laredoan checking in
I'd rather give business to our neighbors, not across the world.
That's not true it is and will always be cheaper to move goods by water. Lerado will not be the busiest nor biggest us port
Gawd daym, imagine the emissions saved, if they would build a railway to transport the containers over the border!
They should make this a train station
Yes, “Products”
The graph at 2:20 is misleading
Does this freight include people too? Inquiring minds want to know.
@1:05 college professors everybody, what would we do without their infinite wisdom😂
The title is very misleading. Laredo is not a small city. The population is 700k. The next big city near by would be McAllen, Texas. By still, those two cities are still small compared to Houston, San Antonio, Mesa....
And they have all these jeeps too