Nearshoring Nearshoring boom fuels transport demand in North America. As the U.S. looks to reduce trade costs and its reliance on imports from Asia, manufacturers opting to “nearshore” Case Study operations closer to home are creating huge growth opportunities for the transportation industry. Using telematics data that analyzes driver Nearshoring, the relocation of manufacturing or behavior and tracks moving violations, HUB production from distant regions closer to a manufacturer’s was able to demonstrate that international home country, can help companies reduce operational drivers from Mexico with a B1 driver’s costs, improve supply chain efÏciency and lower risks that license are safe drivers, resulting in reduced 12 come from outsourcing production offshore. insurance costs. With its proximity to the U.S. and participation in North American trade agreements, Mexico has been the biggest beneficiary. The value of Mexican goods imported into the U.S. rose to more than $475 billion in 2023, ofÏcially To compete in this new marketplace, transportation surpassing the value of China’s imports for the first time companies need to understand the exposures and legal since 2002. Meanwhile, the value of Chinese imports structure of cross-border operations and work with a 13 specialist who can help them secure the right insurance dropped 20% to $427 billion between 2022 and 2023. coverage, avoid coverage gaps and handle claims in And new investments in Mexico related to nearshoring different countries. 14 Nearshoring are expected to reach $46 billion by 2028. to Mexico has increased demand for trucking companies to transport goods across the border to the U.S. Cross- 12. Association for Advancing Automation, “Reshoring and border trucking activity between the U.S and Mexico has Nearshoring Trends and How Advances in the Automation Industry 15 Make North America Competitive,” July 3, 2024. risen more than 20% annually since 2020. 13. AP News, “Mexico overtakes China as the leading source of goods Despite the potential for trucking companies, nearshoring imported by US,” February 7, 2024. 14. Morgan Stanley, “Mexico Poised to Ride Nearshoring Wave,” June isn’t without its risks. Different regulatory, customs and 21, 2023. immigration, international licensing requirements and 15. Inc.com, “4 Ways Nearshoring Can Benefit Your Business,” June cargo and driver security challenges create new, often 29, 2024. unexpected exposures. A trucking company or driver’s commercial auto insurance policy may also not cover transport activities outside of the U.S. 6