Applying Project Cargo Skills to Traditional Freight Forwarding

Q: What unique factors or key differentiators set Lamaignere apart in the logistics sector?

A: We specialize in a market niche that most forwarders do not typically serve: the construction sector. We handle project cargo, heavy machinery, rebar, beams, railway equipment, and other construction materials. These are sensitive and complex operations that require meticulous handling. While other industries might have a logistics department that manages part of the process, construction companies rely on us entirely. As such, they need a comprehensive logistics arm to manage everything. 

We take care of every aspect, from contacting the supplier at the beginning to handling the export and import processes, wherever the machinery comes from. Our expertise lies in managing the entire logistics chain, from point A to point Z. 

Q: How is Lamaignere’s industry portfolio distributed, and how has it evolved since you took up your post?

A: I took over as managing director in September 2023. At the time, 90% of the business focused on project cargo and construction clients, while the remaining 10% was in general forwarding. Upon taking this position, we rebalanced this distribution to avoid putting all our eggs in one basket. Relying heavily on one sector means that if the construction sector is in difficulties, we risk losing 90% of our revenue.

In collaboration with the board of directors, we decided to diversify our services. We are now shifting toward a more traditional forwarding model, catering to companies that move 70-80 TEUs per month. Our goal is to bring the high-quality service we offer in project cargo to the traditional forwarding sector in Mexico. We have made significant progress in this transition, shifting the balance to 70% in project cargo and 30% in traditional forwarding. Our objective is to achieve a 50/50 distribution between project cargo and traditional forwarding, providing high-quality services across both areas.

Q: What does innovation in logistics mean for Lamaignere and how have you developed your service to address the changing needs of customers?

A: Innovation is everything, especially in the logistics sector. Due to the high costs of maritime and air transport, it is becoming increasingly challenging for forwarders to compete on price. Previously, transportation rates stood at about US$800 per TEU, making margins of 25%-30% on freight sales possible. Prices now stand at about US$5,000 per TEU, heavily affecting the logistics chain. 

To differentiate ourselves, we must focus on service. While many forwarders have forgotten the importance of service, it remains crucial. The client is what truly matters. Rather than simply fulfilling basic requirements, we aim to offer comprehensive solutions tailored to our clients' needs. For example, if a client needs to transport materials like cables for construction, we provide a detailed list of requirements and support them with tailored solutions. This approach, focusing on delivering a high level of service, is our innovation. It is not about reinventing the wheel; it is about offering the best possible customer experience, much like in a good restaurant where you expect to be well-treated and offered great recommendations. The essence of innovation in forwarding lies in delivering exceptional customer service, which many have neglected.

Q: What is Lamaignere’s approach to maintaining sustainable operations? 

A: We have adopted several measures to reduce paper use, including transitioning to a fully digital system for documents and signatures. In the European Union, digital signatures are now standard, and Mexico is following suit. We also measure carbon emissions at each office and support reforestation through the Lamaignere Foundation.

Logistics is crucial to the movement of goods worldwide, and the whole industry has made significant strides in addressing environmental concerns and adapting to climate change. Years ago, a crisis in the maritime industry prompted a shift toward reducing the carbon footprint of ships. Companies like Maersk Line and MSC began retiring older vessels and investing in more efficient, eco-friendly ships. The logistics industry has become increasingly green, with new containers using sustainable materials and damaged containers being refurbished rather than discarded.

Q: How is the company planning to adapt to market changes caused by nearshoring?

A: Nearshoring is uncertain, especially given the political landscape and market instability in Mexico. The outcome of the recent elections in Mexico has left many questions about future developments, causing the market to hold off on major decisions until it has clarity. 

The construction industry is well-prepared for nearshoring projects. For example, I managed the import of Goodyear’s plant to San Luis Potosi a few years ago — a project that took two years as it involved bringing in a sizable plant. Projects like these demonstrate the scale and complexity of nearshoring, which goes beyond manufacturing because it requires large-scale construction. The announcement of major projects like Tesla’s could lead to substantial returns. Projects of this scale offer high profitability for forwarders who provide competitive pricing and innovative solutions. The project cargo sector is highly profitable and we have comprehensive experience in this field. Lamaignere has extensive experience in handling complex projects and is well-positioned to continue capitalizing on this trend.

Q: What are Lamaignere’s plans for the Mexican market over the next six years? 

A: Our strategy focuses on two key objectives: improving customer service and expanding our warehousing operations. By concentrating on these goals, we believe we can achieve substantial growth in the next six years. Our main goal for the upcoming years is to establish ourselves as one of the Top 30 forwarders in Mexico, focusing on general cargo. While Lamaignere already ranks well in terms of revenue, our aim is to improve customer service and advance into the general cargo Top 30. Over the next three to four years, we plan to elevate our customer service to a higher level, bringing back a more personal touch.

We are also planning to expand our warehousing capabilities with the opening of a new warehouse in Mexico to handle general and project cargo. This new facility will address the challenges construction companies face with storing materials and provide a reliable solution for their needs. We have warehouses in Chile and Miami, Florida, and we want to replicate this success in Mexico.

Lamaignere is a freight forwarder that offers flexible logistics solutions in the European Union, the Americas, and Asia, with a presence in over 10 countries and with more than 250 experts.