Ryder Expands Cross-Border Footprint in U.S. and Mexico to Support Growth in Nearshoring

Rhea-AI Summary

Ryder System, Inc. (R) opens new warehouse and expands drayage yard in Laredo and Nuevo Laredo, strategically located at the top inland international trade port in MIAMI. The new facilities support growth in manufacturing and nearshoring, enhancing cross-border trade efficiency between the US and Mexico.

Insights

Supply Chain Management Expert

The recent development of Ryder System, Inc.'s logistics facilities in Laredo, Texas and the expansion of its drayage yard in Nuevo Laredo, Mexico, is a strategic move that aligns with the increased activity in transborder trade between the United States and Mexico. The decision to enhance logistics infrastructure in these areas is likely a response to the growing trend of nearshoring, where companies bring manufacturing closer to the end market to reduce lead times and mitigate risks associated with overseas supply chains.

The 228,000-square-foot multiclient warehouse and cross dock, along with the expanded drayage yard, are poised to provide businesses with improved efficiency in freight transfer and distribution. This could result in reduced storage fees and quicker turnaround times for products reaching the market. Additionally, the facilities' strategic location near the World Trade Bridge facilitates easier interstate access, which is crucial for swift cross-border transportation.

For stakeholders, this expansion suggests potential for increased capacity and flexibility in supply chain management. The availability of additional dock doors and trailer space may lead to enhanced throughput and better handling of peak demand periods. Furthermore, the integration of RyderShare™ technology offers real-time visibility, which is a critical factor in optimizing supply chain performance and responsiveness.

International Trade Analyst

Ryder System, Inc.'s investment in logistics operations at a top inland international trade port is a testament to the significance of the U.S.-Mexico trade corridor. With Mexico's ascent to the number one trading partner with the U.S., the infrastructure improvements are timely and likely to support the burgeoning manufacturing sector. The cross-border freight movements managed by Ryder Mexico, particularly in key industries such as automotive and technology, indicate a robust trade ecosystem that benefits from enhanced logistics services.

The strategic location of these facilities could also potentially strengthen the U.S.-Mexico trade relationship by offering more efficient and secure freight movement. Holding certifications like C-TPAT and AEO, Ryder provides a competitive edge by ensuring faster trade and reducing inspections and fees, which can be a significant draw for companies looking to optimize their cross-border operations.

In the long term, this infrastructure development may contribute to the economic growth of the region by attracting more businesses to the area and creating job opportunities. It also has implications for trade policy and bilateral agreements, as improved logistics capabilities can influence trade volumes and the balance of trade between the two countries.

Financial Analyst

The operational expansion of Ryder System, Inc. in Laredo and Nuevo Laredo is likely to have a positive impact on the company's financial performance by enabling it to capitalize on the increased demand for efficient logistics due to nearshoring trends. The investment in infrastructure, particularly in an area experiencing a surge in truck border crossing activity, positions Ryder to potentially capture a larger market share of the logistics and supply chain services in the region.

From a financial perspective, the new facilities could lead to revenue growth through the acquisition of new customers and the expansion of services offered to existing ones. The ability to provide a comprehensive suite of logistics services, from port-to-door solutions to customs clearance and Foreign Trade Zone access, could result in a diversified revenue stream and strengthen Ryder's market position.

However, it is important to monitor the capital expenditure associated with such expansions and the return on investment over time. Shareholders and potential investors should consider the balance between the immediate costs of expansion and the projected long-term benefits, including increased customer satisfaction, operational efficiencies and potential market expansion.

New multiclient warehouse and cross dock and expanded drayage yard strategically located at top inland international trade port

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, announces the opening of a new logistics operation in Laredo, Texas and the expansion of its drayage yard in Nuevo Laredo, Mexico. The ports of Laredo and Nuevo Laredo now comprise the top inland transborder trade port between the United States and Mexico, after Mexico’s rise to the number one spot among U.S. trading partners last year. Ryder’s new and expanded facilities are designed to support growth in manufacturing, while speeding products across the border.

Ryder’s new 228,000-square-foot multiclient warehouse and cross dock in Laredo, Texas is strategically located along the U.S.-Mexico border and is designed to support the growth in nearshoring. (Photo: Business Wire)

Ryder’s newly built 228,000-square-foot multiclient warehouse and cross dock in Laredo is strategically located just three miles from the World Trade Bridge on the U.S.-Mexico border with easy interstate access in both directions. It has 102 dock doors, room for 143 trailers, and it’s within a six-mile radius of Ryder’s other operations in Laredo, which allows for overflow and pooling of labor and resources for added flexibility.

“If you look at the market, truck border crossing activity between the U.S. and Mexico is up more than 20% annually since the pandemic, as more businesses look to nearshoring to diversify their supply chains and shorten lead times,” says Ricardo Alvarez, vice president of supply chain operations for Ryder Mexico. “The savings from manufacturing overseas can be offset by inventory sitting on ships or in seaports incurring storage fees; and, of course, by the product being unavailable to meet demand. With Mexico, you put what you need on a truck and it can be in a final-mile distribution center within days, not months.”

On the Mexico side, Ryder is expanding its Nuevo Laredo drayage yard, which facilitates the transfer of freight across the border to U.S. drivers.

Ryder Mexico manages more than 250,000 freight movements annually across the entire Mexican border, supporting customers in the automotive, industrial, technology, and consumer packaged goods industries. The company also operates approximately five million square feet of multiclient and dedicated warehouse and yard space across Mexico.

“While we specialize in fully integrated port-to-door supply chain solutions, our new multiclient warehouse in Laredo is also a good entry point for customers looking for a logistics provider that can help them scale,” says Frank Bateman, vice president of supply chain operations for Ryder. “As our customers’ needs evolve, we can seamlessly transition them into dedicated warehouses and offer a flexible mix of transportation solutions, including integrated dedicated fleets with professional drivers. And, we can provide real-time visibility and collaboration with RyderShare^™ technology, so our customers can easily see across their supply chains and take action to avoid costly delays, find efficiency gains, and ultimately, improve resiliency.”

For nearly 30 years, Ryder has provided comprehensive cross-border solutions to customers, including manufacturing support, warehousing and distribution, transportation logistics, customs clearance, Foreign Trade Zone access, and more – all supported by best-in-class security protocols. Ryder also holds key industry certifications, such as C-TPAT and AEO, to ensure faster, more secure trade while reducing inspections and fees for customers.

About Ryder System, Inc.

Ryder System, Inc. (NYSE: R) is a leading logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including warehousing and distribution, e-commerce fulfillment, last-mile delivery, managed transportation, professional drivers, freight brokerage, full-service leasing, maintenance, commercial truck rental, and used vehicle sales to some of the world’s most-recognized brands. Ryder provides services throughout the United States, Mexico, and Canada. In addition, Ryder manages nearly 250,000 commercial vehicles and operates nearly 300 warehouses encompassing more than 100 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmental stewardship, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. www.ryder.com

Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements, including our expectations regarding operations in Mexico, are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240221427567/en/

Anne Hendricks, amhendricks@ryder.com

Amy Federman, afederman@ryder.com

Source: Ryder System, Inc.

FAQ

What is the ticker symbol for Ryder System, Inc.?

The ticker symbol for Ryder System, Inc. is R.

Where is Ryder's new multiclient warehouse and cross dock located?

Ryder's new warehouse and cross dock is strategically located in Laredo, Texas, just three miles from the World Trade Bridge on the U.S.-Mexico border.

How many dock doors does Ryder's new warehouse in Laredo have?

Ryder's new warehouse in Laredo has 102 dock doors.

What industries does Ryder support with its freight movements across the Mexican border?

Ryder supports customers in the automotive, industrial, technology, and consumer packaged goods industries with its freight movements across the Mexican border.

What certifications does Ryder hold to ensure faster and more secure trade?

Ryder holds key industry certifications such as C-TPAT and AEO to ensure faster, more secure trade while reducing inspections and fees for customers.