Rising Nearshoring Interest Raises Security Concerns
The increasing interest in nearshoring, which involves moving offshore operations to neighboring countries like Mexico, comes with unique security considerations, particularly a higher risk of cargo thefts. Mexico has been a primary focus for nearshoring efforts from the United States, but it has a track record of higher cargo theft risk compared to the U.S. In 2022, there were over 20,000 reported cargo thefts in Mexico, while the U.S. reported around 1,800. These thefts are often carried out by armed groups and target automotive parts and electronics.
The incidents of cargo theft in Mexico tend to occur farther within the country rather than near the border, although they are often categorized as a border issue. Certain areas, known as corridors, are particularly prone to theft and are controlled by cartels. To mitigate the risk, carriers traveling through these dangerous areas are advised to consider countermeasures such as armed escorts.
It is recommended that carriers obtain proper certifications like Customs-Trade Partnership Against Terrorism (CTPAT) and Partners in Protection (PIP) to demonstrate their trustworthiness and adherence to security protocols. While the increased cargo volume due to nearshoring doesn't automatically imply more risk, Mexico's historical prevalence of cargo theft due to organized crime remains a concern. Shippers are advised to work with reliable carriers that have expertise in cross-border services, certified employees, established security protocols, and technology.
Location plays a role in managing risk in Mexico, with certain areas being safer than others. The triangle between Monterrey, Guadalajara, and Mexico City is considered safe for freight moves due to its density. Valuable items like electronics, appliances, tequila, and tires have a higher chance of being targeted. Companies exploring nearshoring should ensure they operate in safe areas and collaborate with trusted partners, such as CTPAT-certified trucking companies.
Security is a significant issue, and its importance will likely increase along with the growth of nearshoring. The Mexican authorities need to address the security problem effectively to avoid jeopardizing the nearshoring opportunity or diluting its benefits. Mexico has been grappling with a massive security problem even before the surge in nearshoring, with some regions raising concerns about the rule of law versus the influence of cartels.
