Dive Brief:
- Radiant Logistics has opened a new location in San Antonio, Texas, as logistics providers look to capitalize on Mexico's growing role in U.S. supply chains, the 3PL announced Monday.
- The location, part of its "Service by Air" network, will "provide a comprehensive level of domestic, international and U.S.-Mexico cross-border freight forwarding and logistics services," according to a news release. It will leverage Radiant's SAP TM platform, a transportation management system, along with its purchasing power and global network.
- The San Antonio operation will be led by Mark and Rebecca Sweat, who have 40-plus years of combined experience in servicing a mix of customers with a focus on U.S.-Mexico trade lanes, the release said.
Dive Insight:
The San Antonio operation adds to Radiant's more than 100 locations worldwide, including in Texas cities like Laredo, El Paso and Mission near the Mexico border, as it supports a range of manufacturers, distributors and retailers.
Many companies are pushing to build factories closer to consumers and diversify production beyond China, with Mexico being a prime beneficiary of that trend. Logistics companies like Radiant are following close behind by establishing operations and services that can support increased cross-border shipping activity.
"Our conversations right now are more around what do we need to do to be in Southeast Asia, to be in Mexico to support our existing and prospective customers as they're executing those types of [strategies]," Bohn Crain, Radiant's chairman, founder and CEO, said in a November earnings call.
Capturing growing demand in areas outside of China is a priority for Radiant as it struggles with an extended period of weak freight demand and excess market capacity. Its revenue fell nearly 28% year over year in its second quarter, which ended Dec. 31.
"With that said, we remain optimistic that we are at or near the bottom of this cycle and would expect markets to begin to find their way to more sustainable and normalized levels towards the back half of calendar 2024," Crain said in a news release last week announcing the results.
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