Friday, February 6, 2015

Mexico to the rescue!

Inbound: For decades, Mexico's coastal ports primarily served as a destination for cruise ships. But in recent years, the country's Pacific and Gulf Coast ports have become known more for their inflow of cargo than tourists.
While U.S. West Coast ports continue to battle terminal, freeway, and rail congestion, Mexico's ports have become increasingly attractive to global shippers—especially for cargo originating in China and other Asian countries.
Retail leaders, including Wal-Mart, Home Depot, and Target, now regularly look to Mexico as a conduit to expedite delivery of their Asia-sourced goods.
The Los Angeles-Long Beach port facilities continue to handle the bulk of imports from the Far East, but Mexican ports such as Lazaro Cardenas, Manzanillo, Veracruz, and Altamira are recording rapid growth.
Volume at Mexico's busiest port, Manzanillo, for example, surged 43 percent between 2005 and 2006. Last year, the Pacific Coast port handled 1 million TEUs. In comparison, volume at Long Beach and Los Angeles reached a combined total of 14 million TEUs.
This helps protect the economy against the California Flounder which is, at this moment, shutting down West Coast ports for the weekend, they got labor problems:

LOS ANGELES • A strike by some truckers at the ports of Los Angeles and Long Beach is being expanded, with protest organizers targeting three more companies they accuse of unfair labor practices.
Barb Maynard, a spokeswoman for the Teamsters Union, which is backing the drivers, says drivers from QTS, LACA Express and WinWin Logistics joined the ongoing labor action on Monday.
Truckers accuse those firms and others of improperly classifying them as contractors, not full-time employees, to minimize wages and benefits.
Representatives for LACA Express and WinWin declined to comment Tuesday. QTS could not immediately be reached for comment.
The truckers' action comes as the powerful dockworkers union and multinational shipping lines are negotiating a new contract for about 20,000 workers on the West Coast.

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