Promoting Intermodal Solutions for Growth, Sustainability

Q: What distinguishes Matson Logistics in the competitive logistics and supply chain industry, particularly in the Mexican market?

A: Matson Logistics has over 140 years of experience and is publicly traded on the New York Stock Exchange (NYSE). Originating from Matson Navigation, we offer premium, expedited services from Asia to the United States, including Hawaii. As a 3PL provider and Intermodal Marketing Company (IMC), we specialize in intermodal transportation. We have been operating in Mexico for over 20 years, focusing on cross-border services and partnerships with major US and Mexican railroads, including Ferromex and CPKC. This year, we launched Matson Logistics MX to expand our services for the domestic market, including intermodal, road transport, and warehousing.

Q: What trends are influencing Matson Logistics operations in Mexico and abroad? 

A: Matson Logistics prioritizes both technology and humans. We developed our own Transportation Management System (TMS), which we use consistently across the United States and Mexico to ensure high-quality service regardless of location. Over the past four years, we have focused on adapting to local cultures and markets, recognizing that being bilingual is not enough; understanding cultural nuances is key, especially in Mexico where WhatsApp is widely used. Our financial strength has enabled strategic investments, such as establishing Matson Logistics MX to seize opportunities in Mexico. We focus on building strong customer relationships and offering tailored services to support clients. Flexibility, adaptability, and investment in growth are central to our strategy.

Q: What are the main industries Matson Logistics serves in Mexico, and which are the primary routes the company operates to and from the country?

A: Matson Logistics serves two main categories: automotive and Freight of All Kinds (FAK), which includes household products, food items, cleaning products, and paints. In the automotive sector, we are deeply integrated due to Mexico’s strong presence in the industry. Our primary routes for the automotive sector include the Bajio, Mexico City, Mexicali, and Tijuana, with plans to expand to Chihuahua. 

For cross-border operations, we serve Canada and the United States, covering the entire East and West coasts, with Chicago being a key market. In Mexico, we also focus on Monterrey, Saltillo, Silao, San Luis Potosi, Puebla, Cuernavaca, Morelos, and Toluca. Monterrey hosts our largest intermodal hub.

Q: How is Matson Logistics leveraging data analytics and automation to drive efficiencies in supply chain networks?

A: Matson Logistics uses advanced technology to ensure efficient communication with all suppliers, such as railroads, carriers, and shipping partners. Our TMS system centralizes all data, eliminating the need for manual processes and multiple systems, while ensuring real-time, accurate reporting. We also integrate electronic data interchange (EDI) data from railroads and capture essential documents like the Carta Porte within our system. Our GPS-equipped containers, which monitor routes, temperatures, and security, allow us to respond quickly to any issues, improving both efficiency and safety. These technologies help us differentiate ourselves and enhance the customer experience.

Q: Which of Matson Logistics’ services are in higher demand in Mexico, and what opportunities have you identified in the market?

A: In Mexico, intermodal transport holds about 5% of the market, which presents a significant opportunity for growth. While highway transport remains essential, it faces congestion, particularly on routes like Mexico City to Laredo. We are promoting intermodal transport as a more sustainable and efficient option, as trains are able to carry up to 220 containers, reducing road congestion and environmental impact. Overall, we believe intermodal transport will see increased demand in Mexico due to road capacity constraints and the government’s focus on enhancing the rail sector. Matson Logistics’ expertise positions us well for long-term growth in both sectors.

Q: How is Matson Logistics helping to reduce the logistics industry’s carbon footprint?

A: We are deploying initiatives both in-house and with our partners to drive sustainability across the supply chain. As a public company, we report sustainability metrics. Intermodal transport is 75% more sustainable than road transport, and we focus on promoting this option to customers. We also work with suppliers who use cleaner diesel or electric trucks, further reducing emissions. We also provide customers with CO2 savings data when they choose intermodal transport, which supports their own sustainability initiatives. 

Q: What challenges does Matson Logistics face in the Mexican logistics market, and how does the company address them? 

A: A key challenge in Mexico’s intermodal industry is the lack of education, as few career programs cover rail or intermodal logistics. To address this, Matson Logistics works with the Educational Committee of the Mexican Association of Intermodal Transport (AMTI) to educate new and existing generations on intermodal logistics. 

We also face challenges related to customs processes. Unlike road transport, intermodal shipments require customs clearance at inland facilities rather than at border crossings. We educate clients about these differences, providing personalized support, including going to client plants to ensure their processes align with intermodal requirements. We also assist with storage and container management through our transport provider network, offering external yards near client plants for better flow and efficiency.

Q: What are  your expectations for the Mexican market considering the change in administration and the rise of nearshoring?

A: Matson Logistics is a flexible company that has adapted to various administrations and market conditions. We are confident in our ability to adjust to whatever changes may come. While we cannot predict future changes, we are prepared to work with any government. 

Many clients import goods from Asia to Mexico, manufacture finished products, and then export them to the United States and Canada. This creates an imbalance in logistics that requires us to adjust our capacity to accommodate the volume moving northward, which affects transport dynamics, especially with intermodal and road shipments.

Q: What are Matson Logistics’ short and long-term goals for its operations in Mexico?

A: In the short term, Matson Logistics plans to expand its offices in Monterrey and Mexico City, focusing on hiring and training skilled staff. As nearshoring continues, demand for logistics services continues to grow, especially as companies expand their operations in Mexico. We aim to integrate more into our clients’ supply chains. In the long term, we will continue to grow by replicating our proven model, offering services in Mexican pesos, and strengthening relationships with both clients and suppliers. 

We are committed to creating a transparent and respectful environment, with a strong focus on quality service and human interaction, even as we adopt automation. Our goal is to maintain long-term partnerships and to expand our expertise in areas like warehousing, customs, and transportation. Matson Logistics is committed to the Mexican market for the long term. Our stability and strategic vision give our clients confidence in our ability to support them in any market conditions.

Matson Logistics offers overseas sourcing support throughout Asia, including PO and vendor management, consolidation, and expedited LCL/FCL and airfreight transport.