Adapting Relocation, Logistics Services as Nearshoring Grows

Q: How is Trafimar adapting its strategies in response to changes in the logistics and mobility industry? 

A: The industry has changed significantly, especially since the pandemic. Customers are now less patient and expect fast, agile updates. To meet these expectations, we have invested in technology to enhance our response times, integrated systems and teams, and improved communication channels, including using WhatsApp and increasing our presence on social media.

We have focused on understanding and meeting our clients' needs. We professionalized all our processes, integrated internal and external stakeholders, and improved the speed and efficiency of information delivery. While technology has played a significant role, particularly with increased investments in logistics tech, the human element remains crucial. Despite advances, clients still value the ability to speak with a real person rather than a chatbot or AI. The challenge is to constantly adapt to client needs while ensuring seamless integration across our supply chain.

Q: Trafimar encompasses three distinct business units: Mobility, Logistics, and Agency.  How does each unit contribute to the company's overall success? 

A: The Mobility unit offers a comprehensive suite of services for expatriates and their families, including international and domestic relocations, immigration assistance, and relocation services to ensure a smooth transition to Mexico. We help businesses by making their executives productive more quickly during their relocation. A key success story involved an expatriate family that was initially reluctant to move to Mexico. Through personalized support and city tours, we helped them see the potential for a fulfilling life here. 

Our Logistics unit functions as an integrator of services, acting as a freight forwarder and operating bonded warehouses in Mexico and the United States. These facilities are crucial for storage and distribution, helping us provide seamless logistics solutions to our clients. The Agency unit has been transformed through our partnership with Chile's Ultramar Group, a leading shipping agency with a presence in over 29 countries and more than 14,500 employees. Now operating under the brand Altamaritima, we represent shipping lines as their general agent in ports, facilitating services, and acting as the crucial link between the shipping lines and their final customers. 

Q: How is Trafimar Mobility positioning itself to support companies looking to relocate their operations closer to their primary markets? 

A: Nearshoring has led to an increase in relocation services, and the nature of these services has evolved. Many companies that once had numerous expatriates now have significantly fewer, often reducing their mobility packages to financial stipends instead of offering full relocation services. While this gives transferred employees more control, it can also add stress, as moving is inherently challenging.

We have noticed that while people increasingly rely on online platforms to find housing, the information there is often outdated, leading to wasted time. Trafimar offers a tailored home search service, free from conflicts of interest, where we charge based on the time it takes to find a suitable home rather than on commissions. Our local team’s know-how at our client’s service, ensures assignees find the right home without stress and without taking on unnecessary risks.

With the rising cost of living and limited temporary housing options in Mexico, more people are using platforms like Airbnb for short stays. This shift means that many no longer require full relocation services, such as moving assistance or immigration support, as they often travel solo for shorter assignments. Despite these changes, some companies growing in Mexico continue to seek our comprehensive relocation services to support their strategy in Mexico. We are honored to continue to assist Fortune 500 companies and others in achieving the relocation goals.

Q: How does Trafimar Logistics integrate different modes of transport to provide comprehensive logistics solutions? 

A: As a freight forwarder, we focus on niche markets, catering to clients who may not be the primary focus of larger forwarders. We provide personalized service, particularly for clients who are importing or exporting for the first time and need more hands-on support. For these clients, we essentially become their logistics department, guiding them through every step of the process and ensuring their logistics needs are fully met.

Q: Which industries are a priority for Trafimar and why? 

A: We prioritize the pharmaceutical industry, our internal group’s relocation needs, retail, and certain project cargo. These sectors require specialized logistics solutions across maritime, air, and ground transport, and we have seen a steady demand from them, particularly the pharmaceutical and retail industries.

Q: Which of Trafimar's services have seen the highest demand as a result of nearshoring? 

A: We have seen a significant increase in import volumes from the Far East, particularly during the first quarter of this year, which may partly be due to the strong peso and companies looking to take advantage of favorable exchange rates. This has driven up demand for storage, with warehouse occupancy in Mexico City at full capacity and rental costs rising annually.

Nearshoring, which gained momentum post-pandemic due to disruptions in supply chains, has further highlighted Mexico’s potential as a regional manufacturing hub for the United States, Latin America, and the Caribbean. This shift has led us to prioritize import logistics and storage solutions to meet the growing needs of our clients.

Q: What are the primary challenges and opportunities Trafimar faces in the Mexican market?

A: The primary challenges we face include security concerns in transportation and a shortage of operators. Safety issues are deterring potential operators, including women, despite competitive salaries. The recent increase in minimum wage has also intensified competition for talent. While higher wages have become necessary, it has also made it harder to hire and retain staff, such as packers, due to a 60% wage increase over the past three years.

The growing investment in Nuevo Leon and the Bajio presents opportunities, but it also highlights the need for skilled personnel. Addressing the shortage of about 60,000 operators is crucial, as many large transport companies are struggling to meet client demand and expand due to a lack of available drivers. This situation is influencing our strategies to focus on professionalizing the sector and improving recruitment and retention efforts.

Q: What environmental strategies or programs is Trafimar implementing? 

A: We have implemented several environmental strategies, including installing solar panels at our facilities to reduce energy consumption. We are also renewing our fleet to improve fuel efficiency. Our moving services focus on reusing packing materials and educating our clients about the sustainability benefits of reusing cardboard up to three or four times.

We encourage clients to reuse packing materials and minimize cardboard use, while maintaining the quality of our services. We aim to create a circular economy and raise awareness about the environmental impact of moving. While some people may decide to buy new items in their new country, we promote reusing and repurposing belongings to reduce waste.

Q: How is the logistics and mobility industry evolving, and what role do you envision Trafimar playing in its future? 

A: We are highly responsive to evolving client needs. Rather than trying to redefine the industry, we focus on listening closely to clients and adapting to their changing expectations. We anticipate ongoing demand for services related to moving and relocation, but we are committed to addressing new challenges as they arise. Our approach is to stay attuned to client needs and to be flexible in finding solutions, ensuring that we can effectively meet both current and future demands.

Q: What are the key growth areas and opportunities that Trafimar is focusing on for the next five years? 

A: Our key priorities for the next five years include expanding our presence in Mexico, particularly in the Bajío and southeastern regions. We aim to enhance our services by either developing better relationships with local suppliers or establishing our own operations if needed. While we value our national network of suppliers, we recognize the growing demand outside major cities like Mexico City and are focused on addressing this shift.

Trafimar is a leading logistics and mobility service provider in Mexico with over 40 years of experience.