Borderlands Mexico: Echo Global Logistics grows cross-border footprint
Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Echo Global Logistics grows cross-border footprint as trade booms; Maersk launches cross-border warehouse in Tijuana; Yokohama announces $380M tire plant in Mexico; and Legendz Way to open distribution center in North Texas.
Echo Global Logistics grows cross-border footprint as trade booms
Echo Global Logistics has opened new locations in Texas and Mexico, as more global companies are moving production south of the border to seek a manufacturing hub closer to the United States.
Officials for the Chicago-based company said they have been managing shipping solutions along the U.S.-Mexico border for the past eight years, but the recent expansion puts boots on the ground for the first time in Mexico, with locations in Mexico City and Monterrey.
The company also opened a location in Laredo, Texas, and recently named veteran logistics industry executive Troy Ryley as president of Echo Mexico. Ryley said Echo already handles thousands of monthly shipments to and from Mexico and the number will grow with the expansion.
“Echo is obviously a very dynamic company. We work with over 50,000 transport providers, through about 35,000 clients,” Ryley told FreightWaves. “These clients have continued to work with us at the Southern border. For the last decade, Echo has actually had cross-border Mexico shipments that the company has handled, but they’ve handled it from a base in Chicago. Echo has made the decision to increase their investment and put boots on the ground in Mexico, so we can further provide enhanced service for our clients.”
Founded in 2005, Echo Global Logistics is a global provider of supply chain management services.
With the new locations in Laredo, Monterrey and Mexico City, Echo now has 29 operations across the U.S. and Mexico. In addition to Laredo, Echo has Texas operations in Houston and Dallas.
Echo’s strategy follows similar recent moves or expansions in Texas or Mexico by other transportation providers and freight brokers, such as Redwood Logistics, C.H. Robinson, Ryder System Inc., Arrive Logistics and BlueGrace Logistics.
Over the past several years, Mexico has emerged as one of the key players in the global supply chain. In 2023, Mexico surpassed Canada and China as the top U.S. trading partner for the year, totaling $798 billion in trade.
Mexico was also the top U.S. trading partner for the month of January, with two-way commerce totaling $64.5 billion.
The port of entry in Laredo, Texas, was the No. 2-ranked U.S. trade gateway during January. Trade at the Laredo port of entry totaled $25 billion for the month.
Ryley said having a presence in Mexico will allow Echo to simplify brokerage services on both sides of the border, along with helping shippers and carriers navigate customs and border crossings.
“We’re going to continue to work on the same product we deliver and handle today,” Ryley said.
“We offer freight brokerage, managed transportation, as well as a bunch of other modes, such as truckload, less-than-truckload, intermodal and expedited shipments all over the Southern border. In the future, we will incorporate those services also into cross-border. We just don’t have an exact timeline yet. Some of the service that is managed transportation, we actually do handle for clients cross-border in and out of Mexico, but not intra-Mexico. That’s another product we’re also looking at, based on client demand, is an intra-Mexico solution.”
Maersk launches cross-border warehouse in Tijuana
Maersk, the world’s second-largest ocean carrier, announced it has opened a 322,900-square-foot warehouse in Tijuana, Mexico.
The facility will focus on cross-border business, targeting customers in the technology, automotive, retail and lifestyle sectors, according to a news release.
Situated near the Port of Ensenada, Tijuana is emerging as a hub for international trade, particularly because of its proximity to the U.S. The warehouse in Tijuana increases Maersk’s logistics capacity in Mexico to over 1.6 million square feet of space.
Denmark-based Maersk is a global logistics company operating in more than 130 countries, with around 100,000 employees.
Yokohama announces $380M tire plant in Mexico
Yokohama Tire Corp. announced it is building a $380 million tire plant in Saltillo, Mexico, to boost its tire production capacity for the North American market.
The plant will produce up to 5 million tires a year for passenger vehicles. Construction is scheduled to begin in the second quarter, and the facility will open in the first half of 2027.
“This is a clear signal that Yokohama is committed to the North American market,” Jeff Barna, Yokohama Tire Corp. president and CEO, said in a news release. “The increased production capabilities will supplement existing global capacity for tires destined for our region.”
Yokohama Tire Corp. is the North American manufacturing and marketing arm of Tokyo-based The Yokohama Rubber Co. Ltd.
Legendz Way to open distribution center in North Texas
Legendz Way Distribution Solutions announced it will open a 730,000-square-foot distribution facility in Midlothian, Texas, in May.
The facility will include 50,000 square feet of air-conditioned space and over 70,000 square feet dedicated to racking systems. Midlothian is 28 miles south of Dallas.
Legendz Way will have over 1 million square feet of logistics space once the Midlothian distribution center comes online, according to a news release.
Grand Prairie, Texas-based Legendz Way Distribution Solutions is a third-party logistics company.
“This expansion is more than just growing our space; it’s about carefully adapting our services to meet the distinct needs of each partner and client,” Jeff Doolin, Legendz Way co-founder and COO, said in a statement.
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