Cross-Border Cold Chain | Running on Ice

Introduction

Welcome to Running on Ice, the coolest community in Freight. I’m your host, Mariio Connell, here to deliver the latest tech updates, warehouse news, and everything happening in the cold chain world. Today, we’re excited to welcome Jordan Dart, the president of Redwood Mexico. While our previous chats focused on 3PL and freight brokerage, today we’re diving into the world of cold chain logistics, particularly with a focus on cross-border transport and produce imports at the US-Mexico border.

Background on Jordan Dart

Jordan Dart, originally from Canada, grew up on a farm, giving him a solid background in produce. After high school, he ventured into Mexico, drawn by the prospects of the NAFTA agreement and pursuing studies in international business. Over nearly three decades, Jordan worked in the logistics sector in Mexico. In 2018, he relocated back to the US to help greenfield Redwood Mexico, now based in San Antonio.

The Produce Landscape

When it comes to produce exports and imports at the US-Mexico border, the conversation extends beyond avocados. Jordan highlights that Mexico produces a variety of goods to meet US consumer demands all year round. As the market demands products throughout the year, Mexican farmers have adjusted their growing seasons accordingly. For instance, they’ve strategically timed avocado production to align with the Super Bowl peak season, significantly driven by consumer cravings.

Jordan points out that while certain produce has specific growing seasons that must be adhered to, Mexican farmers now employ multiple growing seasons to enhance produce supply. Mexico has become a supermarket for the US, evolving beyond seasonal offerings to a steady supply throughout the year.

Challenges in Cross-Border Logistics

Despite technological advancements and innovations in flash cooling to preserve produce freshness, logistics challenges remain prominent. One current issue is the competition for available trailers during peak produce and dry cargo seasons, particularly in the summer months.

Regarding economic factors, Jordan notes fluctuations in currency exchange rates between the peso and the US dollar significantly affect cross-border logistics. Historically, when the peso was weaker, exporters enjoyed more favorable conversions. However, recent elections have caused the dollar to strengthen against the peso, providing relief for exporters. This situation emphasizes the importance of currency dynamics in profitability and competitiveness in the market.

The Role of Customs and Inspection

Another critical facet of the discussion is the role of Customs Border Protection in facilitating the flow of goods. Significant investments have been made in inspection infrastructure, particularly in Laredo, El Paso, and McAllen. Expedited produce processing is crucial due to rising export numbers. This increases demand for both border inspection and cold storage facilities.

While the current infrastructure is strong, there is potential for further improvement in expediting inspections and reducing wait times at the border. Jordan expresses hope for a seamless integration of systems parallel to those seen with Canada, where border crossings are generally smoother.

Conclusion

The conversation with Jordan Dart reveals the evolving complexities of cross-border cold chain logistics in the US-Mexico context. As consumer demands continue to shift and the dynamics of currency and logistics evolve, the industry is poised for a future filled with both challenges and opportunities. The growth of produce imports signifies a vibrant agricultural exchange that not only supplies consumers but also underscores the essential role of effective logistics in maintaining quality and efficiency.

Keywords

• Cold chain logistics
• Cross-border trade
• Produce imports
• US-Mexico border
• Currency exchange rates
• Custom inspections
• Nearshoring

FAQ

1. What is cross-border cold chain logistics?
Cross-border cold chain logistics refers to the continuous temperature-controlled supply chain that helps preserve the quality of perishable goods during transport across international borders.

2. What factors influence produce exports from Mexico to the US?
Some factors include US market demand, seasonal production schedules, and currency exchange rates between the US dollar and the Mexican peso.

3. How do Mexican farmers adjust to US consumer demands?
Mexican farmers often align their growing seasons with peak consumer demand periods, such as timing avocado harvesting for the Super Bowl season.

4. What challenges do logistics companies face in cross-border operations?
Challenges include competition for transportation capacity during peak seasons, currency fluctuations, and inspection wait times at customs.

5. How has technology improved cold chain logistics?
Advancements such as flash cooling systems help rapidly process and preserve produce, reducing spoilage during transport.