Thursday, September 10, 2015

Freight Forwarding and Shipping Agency Sets Up Mexican LCL and FCL Service

John Good Looks to the West with New Box Route
Shipping News Feature

UK – MEXICO – Possibly the worst thing any company can do is rest on its laurels, business, especially freight and logistics, fluctuates wildly from year to year and survival depends on adaptation to new markets. If, like John Good Shipping, you have been around for 180 years, the desire to evolve and expand must still be an integral part of company policy. So it is that the Yorkshire headquartered ships agency and freight forwarding outfit has looked to the West, and a new market, Mexico.

Traditionally John Good has been trading in the Baltic and beyond with trade lanes developed to Turkey as well as the Indian subcontinent and the Far East. This latest move however sees the company offering both LCL and FCL services to and from the South American country. Just as Brazil is the lead initial for the BRICs economies so Mexico provides the M in MINT, the top four emerging economies of Mexico, Indonesia, Nigeria and Turkey. Seamus Jennings, Joint Managing Director at John Good pointed out that expansion into the country was an ideal choice for the British company to target due to its trade links with both the US, under the North American Free Trade Agreement (NAFTA), and the rest of South America.

Over recent years, Mexico has significantly increased its export markets, boosting its growth to almost 4% across all trades. The UK is currently in 6th position in world economies with a GDP of $2.535 billion whilst Mexico lies 14th with a GDP of $1.258 billion and a potential Jennings describes as ‘colossal’. Energy prices are to be significantly reduced by the Mexican government, a move which should promote industry and draw overseas investment as well as a need for imported raw materials.

Jennings points out that trade between the two countries is already enjoying double digit growth and the new service coincides with both the UK and Mexican governments celebrating 2015 as the ‘Year of United Kingdom in Mexico’, an initiative which is designed to increase trade and understanding. In 1826 (seven years prior to John Good setting up his company) the UK was the first country to recognise Mexico as an independent power when both countries signed the Treaty of Amity, Commerce and Navigation, and the events planned to be included in this promotion cover such diverse areas as business forums, trade missions, seminars to provide business opportunities, as well as activities for the promotion of tourism and gastronomy.