This year has brought countless disruptions and delays to our personal lives and business transactions in many ways, especially in relation to international air travel. Between lost routes, decreased capacity, and an increase in shipments of PPE and medical supplies, air cargo carriers have faced numerous difficulties in ensuring the same quality and cost of service. With the current situation, in addition to the end-of-the-year high season that is now upon us, as well as carriers mobilizing to ship vaccines across the globe, it’s important to have a plan in place to help avoid and mitigate further disruptions to supply chains and air cargo shipments.
In December of each year, cargo carriers of all sizes are inundated with orders that need to arrive for Christmas, including e-tailers such as Amazon and others. This takes up a large amount of cargo capacity, which is now already stretched thin due to impacts on the air market this year. Over one-third of global air routes have been lost in 2020, going from 47,756 in January to just 33,416 in November. This decreased availability of both passenger and cargo routes has affected supply chains and severely limited carriers’ cargo capacity, resulting in increased costs for shipments and, of course, delays.
Another exacerbating factor is that many carriers are beginning to dedicate their already-limited capacity to the international distribution of a vaccine that is currently being produced and is beginning to be shipped in massive amounts to all parts of the globe. There have also been airport shutdowns, like the one that halted all cargo operations at the Shanghai airport at the end of November, causing significant setbacks in receiving shipments.
Though no country is exempt from these new and old challenges, there are several advantages to international companies in Mexico that allow them more options to mitigate these impacts, such as its geographic location that allows more opportunities for land, air, and sea transport to main markets in North America. This has been especially beneficial to the automotive manufacturing Mexico in adapting and expanding with new trade agreements, such as the USMCA, encouraging investors to start up nearshore or offshore manufacturing in Mexico.
As companies in a wide range of sectors, including the growing medical devices manufacturing Mexico market, continue adapting and seeking innovative solutions to ensure long-term success and supply chain continuity, it is a good idea to consult a provider of shelter services in Mexico. They have the network and on-the-ground experience to ensure that events like these do not catch companies off guard.
Being informed about both regular market trends and patterns and emerging events like those that occurred this year means companies can plan for and mitigate the adverse effects. In terms of logistics support, shelter providers have the personnel, network, and connections to ensure companies can best leverage their assets and focus on what they do best. They will take care of everything from obtaining import permits, maximizing duties’ savings, tracking and controlling import and export of raw materials, and ensuring and effortless customs clearance and seamless flow of goods.
By Marian Garibay | Guadalajara Regional Director | American Industries Group®
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