To date, China's attempts to circumvent U.S. tariffs on its exports are succeeding, with imports to Mexico set to maintain a solid pace throughout 2024. And while Mexico has tried to preserve its relationship with the U.S. and correct a trade imbalance with China by imposing its own tariffs, changes in the global supply chain indicate that won't hamper relations between the two economies. In fact, according to Ti, the growth in trade is supported by investments in infrastructure and a growing number of initiatives by large shipping lines.
Direct Services
One of the significant initiatives of the shipping lines is the express container service on Cosco Shipping's Dalian-Mexico route inaugurated in July 2024. This was created to improve the efficiency of coverage between Dalian and the main Mexican ports, reducing traditional itineraries by 10 days.
On the other hand, COSCO's 'TLP5' service, launched in early 2024, offers a direct link between major Asian ports and major Mexican terminals, such as Manzanillo and Ensenada.
Similarly, CMA CGM and MSC have direct services to meet the growing demand for Mexican manufacturing and distribution hubs created by reshoring and nerashoring. Meanwhile, Qingdao's service to Mexico, launched in the first quarter of 2024, has contributed to double-digit growth in container transit between China and Mexico.
Direct routes and services have reduced reliance on transshipments in the region, decreasing shipping costs and time, benefiting high-volume importers. In turn, the routes are reducing reliance on U.S. ports and easing congestion in Mexico, where several terminals are being upgraded to accommodate higher volumes.
Projections for 2025
According to Ti, the trade relationship between China and Mexico will continue to influence global shipping throughout 2025 and beyond, driving multiple strategic changes, the most likely result of which is that shipping lanes will diversify further, reducing pressure on the Panama Canal and the U.S. West Coast in particular.
Of particular note is Mexico's interoceanic corridor, which will provide an alternative transport route between the Pacific and the Gulf of Mexico, the net result of which will be a redistribution of volume throughout the Americas.
Although not yet fully operational, the corridor will reach key milestones in the next 12 months, with the commencement of operations of the ports of Salina Cruz on the Pacific coast and Coatzacoalcos on the Gulf. This will streamline the transfer of cargo through the corridor and further improve trade efficiency with Asia, giving the latter's countries agiving the countries of the latter diversified access to the East Coast of the United States.
As 2024 comes to an end, according to Ti, the trade partnership between China and Mexico will go from strength to strength. The increase expected in 2025 is driven by changes in strategic shipping lanes, improved infrastructure and direct services.
China's continued circumvention of U.S. tariffs through robust exports to Mexico and the introduction of direct maritime services reduces dependence on U.S. ports, easing congestion and lowering costs in the process.
Meanwhile, the interoceanic trade corridor will improve trade, creating an efficient link between the Pacific and the Gulf of Mexico and redistributing trade across the Americas. Taken together, these developments indicate a deepening of the relationship between China and Mexico, with broad repercussions on global shipping and the U.S. West Coast in particular.
By MundoMaritimo
