The Impact of Nearshoring and Reshoring on International Transportation Networks​

The Impact of Nearshoring and Reshoring on International Transportation Networks​

Nearshoring (relocating production to nearby countries) and reshoring (bringing production back to the home country) are reshaping international transportation networks, reducing long-haul routes and increasing regional logistics demand. Shortening supply chains reduces transit times and costs. Companies moving production from Asia to Mexico (nearshoring for U.S. markets) or from China to the EU (reshoring) cut transportation distances significantly. For example, a U.S. auto manufacturer nearshoring to Mexico reduces parts transit time from 30 days (from China by sea) to 2-3 days (by truck), lowering inventory holding costs and improving responsiveness to demand changes.​

Regional transportation modes gain prominence. Nearshoring increases reliance on road, rail, and short-sea shipping instead of long-haul ocean or air freight. The U.S.-Mexico border sees growing truck and rail traffic, with carriers adding more cross-border services—e.g., Union Pacific’s intermodal trains between Monterrey and Chicago now run twice daily, up from once daily in 2019. Short-sea shipping between EU countries (e.g., Spain to France) replaces some Asia-EU ocean freight, with coastal carriers expanding capacity by 20% since 2020.​

Infrastructure investments support regional networks. Countries are upgrading border crossings, rail links, and regional ports to handle increased nearshoring traffic. Mexico is investing $30 billion in its “T-MEC Logistics Corridors” to improve roads and rail between industrial hubs and U.S. borders. The EU’s Trans-European Transport Network (TEN-T) prioritizes upgrades to rail lines connecting Eastern and Western Europe, facilitating reshoring from Asia to Central Europe.​

Carrier strategies adapt to new demand patterns. Logistics providers are shifting resources from long-haul routes to regional networks. DHL has expanded its Mexico City warehouse capacity by 40% since 2021 to serve nearshoring clients, while Maersk has launched more short-sea services between the U.S. East Coast and Mexico’s Gulf Coast. Carriers with strong regional networks (e.g., C.H. Robinson in North America, DB Schenker in Europe) are gaining market share over those focused solely on global routes.​

Challenges of nearshoring/reshoring logistics. While transit times shorten, regional infrastructure may lack the capacity of established global hubs, leading to localized congestion. For example, the Laredo border crossing between the U.S. and Mexico now handles 40% more truck traffic than in 2019, causing 2-3 hour delays during peak times. Companies must also navigate new regulatory environments—e.g., Mexican customs procedures differ from Chinese ones, requiring updated compliance processes.

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