LOGISTICS & DISTRIBUTION
US tariffs of 50 % on steel, aluminium and products using those materials have hit manufacturers in Mexico. Sectors such as automotive parts, appliances and beverage packaging are particularly exposed. Shippers with lower wait times and more attractive freight have the upper hand in negotiating with carriers eager to keep their trucks moving.
Meanwhile, at Descartes, Scott Sangster helps freight forwarders and 3PLs navigate cross-border hurdles with better technology.
“ Logistics service providers managing cross-border logistics face several significant challenges, including navigating complex and constantly changing customs regulations, visibility to shipments in-transit, rate management, integrating information of back-office systems as well as connecting with a broad range of parties, including carriers, government agencies and intermediaries,” Sangster says.
Chetan Sampat, Associate Partner at McKinsey & Company, sees many of the same issues with his clients across the automotive and industrial sectors.
“ Disruptions including geopolitical turmoil and natural disasters are causing frequent delays, increasing costs and disrupting the flow of goods,” he explains. With variable tariffs, complex regulation and multiple handovers, visibility is poor and efficiency suffers.
“ Companies need to focus on strategic planning, which involves identifying and mitigating risks, optimising routes and developing contingency plans,” Sampat adds. supplychaindigital. com 121