What is logistics and what type should I hire in Mexico? Maritime, land or air?

At the heart of any efficient business operation is logistics, the art of managing the flow of goods and services from the point of origin to the final destination. In Mexico, a country whose economy is driven by international trade and diverse production, logistics plays a crucial role in the movement of goods throughout the national territory and beyond its borders.

Logistics in Mexico encompasses a complex network of transportation infrastructure, including seaports, roads, railways and airports. These communication routes are essential for the efficient distribution of products, both within the country and on international trade routes.

Now that its importance in Mexico has been mentioned, the question arises:

What does the term logistics mean?

Logistics is the process of planning, executing and controlling the efficient movement and storage of goods, services and information, from the point of origin to the point of consumption. In simple terms, it is about effectively managing all the steps necessary for products to reach customers at the right time, in the right quantity and in the right conditions.

Logistics in Mexico: Engine of the Economy

Mexico, as one of the main players in global trade, relies heavily on its logistics system to remain competitive in the global market. According to data from the World Bank, Mexico is among the 15 main exporters and importers in the world, with a total value of foreign trade that exceeds 950 billion dollars per year. Being the number 1 trading partner, surpassing China of the United States in 2024.

Foreign Trade of Mexico in Figures:

• Total Exports in 2023: Mexico exported goods worth a total value of approximately 450 billion dollars in 2023,
• Total Imports in 2023: Regarding imports, Mexico received goods worth a total value of around $500 billion in 2023, according to data from the World Bank.
• Main Trading Partners: The United States continues to be Mexico's main trading partner, absorbing around 80% of the country's exports. They are followed by Canada, China, Germany and Japan, among others.

Marine transport

The country has a network of more than 100 seaports, among which Manzanillo, Lázaro Cárdenas, Veracruz and Altamira stand out, which together handle millions of tons of cargo annually. These ports are essential for exports and imports, connecting Mexico with trading partners in North America, Europe, Asia and Latin America.

Ground transportation

Regarding land transportation, Mexico has an extensive road network that extends more than 370,000 kilometers. This network connects the main cities and industrial centers of the country, facilitating the transportation of goods throughout Mexico and to international destinations.

Railway transport

On the other hand, rail transport also plays an important role in Mexican logistics, especially for the mobilization of bulk products such as oil, minerals and agricultural products. Companies such as Ferromex and Kansas City Southern of Mexico operate extensive rail networks that connect producing regions with ports and Distribution centers.

Air Transport

In the air sector, Mexico's international airports, such as Mexico City International Airport and Guadalajara International Airport, are crucial connection points for air cargo transportation. These airports handle thousands of tonnes of cargo annually, facilitating fast and efficient trade with destinations around the world.

How to Choose the Ideal Type of Logistics for Your Company in Mexico?

Have you ever wondered how companies manage to move their products from one place to another efficiently? Well, that's precisely what logistics does. Simply put, logistics is the process of planning, executing and controlling the movement and storage of goods and services, from the point of origin to the point of consumption.

In Mexico, logistics plays a fundamental role in international trade, being a country with an extensive transportation network that includes strategically located roads, seaports and airports. This allows Mexican companies to import and export their products effectively, contributing significantly to the country's economy.

How to Decide What Type of Logistics is Most Suitable?

If you are thinking about expanding your business or improving your logistics operations, it is crucial to choose the type of logistics that best suits your needs. Here are some tips that can help you make that decision:

1.Type of Product or Service:

– Does your company handle perishable products that require rapid and refrigerated transportation? Or are they bulk products that can benefit from sea transportation? The type of product you handle will be key to determining the most appropriate transportation method.

2.Distance and Destination:

– Consider the distance between origin and destination points, as well as the location of your suppliers and customers. For international or long distance shipments, sea or air freight might be the best option.

 3.Volume and Frequency of Shipments:

– Do you ship products frequently and in small quantities? Land transportation could be more agile and efficient. On the other hand, bulk shipments can be more profitable with ocean freight.

4.Costs and Efficiency:

– Analyze the costs associated with each type of logistics, including transportation, storage, and inventory management. Find a balance between operational efficiency and costs to maximize profitability.

5.Delivery Time and Flexibility:

– Do you need your products to reach customers quickly? Consider air freight, which is usually faster but expensive. Ground transportation can offer flexibility in delivery times.

6.Safety Requirements and Regulations:

– Make sure you comply with safety regulations and requirements when transporting your products. Some products may require special storage or transportation conditions.

 Making the Best Decision for your Company

Ultimately, choosing the right type of logistics for your business will depend on a careful evaluation of these factors. Analyzing your specific needs, considering the type of products, distance, volume, costs and speed of delivery will help you make an informed decision.

In Mexico, with its robust logistics infrastructure and strategic position in international trade, companies have access to a variety of logistics options. Whether agile and flexible land transportation, cost-effective ocean transportation for large volumes, or fast but expensive air transportation, Mexico offers a diverse scenario to meet your company's logistics needs.

So the next time you are thinking about optimizing your logistics operations, take a moment to consider these key aspects and choose the type of logistics that will drive your company's growth and efficiency in the dynamic Mexican market.

Ground Control

By partnering with Control Terrestre, you are not only getting high-quality logistics services, but also expert, personalized guidance. This Mexican logistics company becomes your strategic ally and advises you on what type of logistics is most suitable for your business, helping you make informed and efficient decisions for the success of your company.

In a market where logistics is key to business growth, trusting a reliable partner like Control Terrestre can make a difference. Allow your company to move fluidly and efficiently in the complex logistics environment of Mexico, with the support and experience of Control Terrestre at your disposal.