Strategic Logistics in the Raw Materials Industry: From Origin to Consumption

Theraw materialsare the foundation of all industrial production. Their extraction and quality are essential, but theirefficient movementfrom the point of origin to the transformation and consumption centers is equally critical. In thewhitepaper “Industry Fundamentals: Raw Materials”by Control Terrestre, it is explained how these resources go through multiple phases and routes before becoming final products.

This blog delves into the logistics dimension of raw materials, analyzing modes of transport, challenges, trends, and their role in global supply chains.

Transportation modes that move the industry

Transportation connects mines, fields, and forests with manufacturing plants and global markets. According to theControl Terrestre whitepaper, the main modes are:

• Road / highway: essential for the final stretch, from extraction points to transfer stations and processing centers.
• Bulk maritime / tanker ships: fundamental for the international trade of energy and minerals.
• Rail: optimal for moving large volumes over long distances at a lower cost per ton.
• Pipelines (oil and gas pipelines): efficient for liquids and gases on a large scale, ensuring operational continuity.

The combination of these modes, known asintermodal transport, allows for optimizing cost, speed, and capacity.

Logistical challenges in the transportation of raw materials

Moving raw materials is not without its challenges:

• Costs and efficiency: freight, tolls, port fees, and maintenance increase the total cost.
• Limited infrastructure: congested roads, ports, or railway lines slow down delivery.
• Regulations and customs: each country has specific regulations for the transport of strategic or hazardous resources.
• Sustainability: the pressure to reduce emissions in maritime and land transport is increasing.
• Security and risks: theft, spills, inclement weather, and geopolitical conflicts can interrupt key routes.

The role of the USMCA and regional logistics

Mexico, the United States, and Canada form a deeply interconnected trade bloc under theUSMCA. This facilitates the continuous flow of raw materials, intermediate goods, and final products. (Control Terrestre)

For example:

• Canada supplies aluminum, steel, and energy.
• Mexico contributes oil, copper, and agricultural products.
• The United States integrates manufacturing and processing.

A delay at the border or a congested port can affect the entire automotive or energy chain, demonstrating that logistical interdependence is both a strength and a risk.

Trends and opportunities in raw materials logistics

1. Strategic materials: the demand for lithium, cobalt, rare earths, and graphite grows with electrification and electric vehicles.
2. Digitalization and traceability: blockchain, IoT, and sensors allow monitoring the route, quality, and emissions of each shipment.
3. Sustainability: optimized routes, alternative fuels, and environmental compensation reduce the logistical footprint.
4. Diversification of routes: reducing dependence on geographical or geopolitical bottlenecks ensures continuity in supply.

What to take into account?

The transportation of raw materials isthe circulatory system of the global economy. Without efficient, safe, and sustainable routes, extraction loses value and manufacturing is affected. Companies that master logistics and adopt technological innovation will be better positioned in an increasingly competitive and globalized market.

This blog directly complements the content of“Industry Fundamentals: Raw Materials”and highlights the strategic importance of logistics throughout the value chain.