XPO expands U.S.-Mexico cross-border service offerings

Earlier this week, Greenwich, Conn.-based national less-than-truckload (LTL) services provider XPO heralded the expansion of its United States-Mexico cross-border service, with a focus on what it called a significant increase in customer nearshoring and changing supply chain needs.

The company said its new XPO+ service offers up more capacity, coverage, and technology to its long-standing cross-border routes, driven by growing customer demand, as supply chains move from overseas to production in North America.

Key aspects of the new XPO+ service include:

• Expansion to seven border-crossing points to further accelerate delivery times;
• Secure, CTPAT-certified service with broader coverage to 99% of postal codes in Mexico;
• A significant increase in capacity available for cross-border services;
• Real-time online tracking of freight from pick-up to delivery;
• A dedicated, bilingual XPO Mexico+ concierge desk for best-in-class customer support; and
• Instant online access to shipping quotes

“For more than 40 years, our North American network has set the standard for LTL freight transportation between the US and Mexico,” said Mario Harik, chief executive officer of XPO, in a statement. “Now, we’re at the forefront of growth in cross-border trade, with nearshoring trends driving increasing demand for LTL services. XPO Mexico+ delivers an industry-leading network of border crossing points, expanded Mexico coverage and purpose-built technology. Our customers‘ shipments arrive safely and on time, with door-to-door visibility.”

The timing of this new service is not entirely surprising, as Mexico is now the largest importer to the U.S., as of February 2023, XPO observed, adding that U.S.-bound imports from Mexico increased 34% from 2019-2023 and are up 6% in 2024.

What’s more, 2023 marked the first time in two decades that the United States imported more goods from Mexico than China, rising 4.4% annually, to $480 billion, coupled with U.S.-bound imports from China off 20% annually, according to U.S. Census bureau data.

These data points, in various ways, highlight the ongoing emergence of Mexico—not only as a major cross-border trading partner, but also as a global manufacturing hub as well, coming with significant supply chain- and logistics-related implications.

That was made clear in March LM reader survey of more than 100 freight transportation, logistics, and supply chain stakeholders.

The survey’s findings were largely positive, in terms of the attitude and approaches shippers are taking to setting up shop in Mexico, coupled with the ones that plan to make inroads there.

For example, 80% of respondents stated they currently have logistics operations in Mexico, ranging from one year to 20 years, across a plethora of services, including: auto parts manufacturing; packaging and kitting services; produce; transportation and customs brokerage; and contract logistics services, among others.

What’s more, 93% of respondents stated that they plan to establish future operations in Mexico, with many citing the expansion opportunities it offers for their companies. But, at the same time, there are other considerations that need to be factored in as well.