DP World, a leading global provider of end-to-end logistics services, has developed a pioneering solution for transporting finished vehicles from Mexico to the United States and Canada via rail. Beginning June 1, 2024, DP World will introduce a groundbreaking 53-foot intermodal container service for this purpose.
The process involves loading vehicles directly into containers at Mexican factories or designated stuffing yards near manufacturing hubs. These containers are then transported by truck to intermodal rail ramps and shipped by rail to various destinations including Los Angeles, Chicago, Detroit, and Toronto.
Upon arrival, the containers are trucked from the rail ramps to designated yards, where the vehicles are unloaded and further transported to dealerships. This door-to-door transit typically takes between eight to 14 days depending on the route. It is projected that this new service will facilitate the transportation of an additional 30,000 finished vehicles between trading partners in 2024.
Unlike traditional 40-foot containers, which can hold a maximum of four cars, the 53-foot containers can accommodate up to six vehicles, resulting in increased efficiency and cost reduction for Original Equipment Manufacturers (OEMs). DP World is currently the sole provider of this innovative intermodal 53-foot container solution for finished vehicles.
This development comes at a crucial time for the automotive logistics industry in North America, which has been grappling with challenges such as capacity shortages in ro-ro (roll-on/roll-off) and multilevel railcars. These shortages have spurred the demand for alternative outbound solutions.
Mexico has emerged as the top trading partner of the United States, surpassing China in 2023, largely due to the strong cross-border relationship fostered by Mexico's thriving manufacturing sector, especially in automotive production. The enactment of the United States-Mexico-Canada Agreement (USMCA) in 2020 further bolstered this partnership.
Since the start of 2024, DP World has already transported over 5,000 cars across the Mexico-U.S. border for American and Japanese OEMs with manufacturing operations in Mexico. This underscores the company's commitment to providing innovative solutions to meet the evolving needs of the automotive industry in the region.
“Our extensive experience shipping cars in containers worldwide, the large racking fleet we can deploy globally within weeks, and our expert teams and hyper focus on quality and service have enabled DP World to provide this unique solution in a challenging environment. Our initial volume shipments this year have proven concept that the 53-foot intermodal solution is a viable alternative during times when traditional capacity is tight, so we decided to officially offer the program to the wider market,”said Christoph Seitz, Global Vice President Finished Vehicles at DP World.
The process involves loading vehicles directly into containers at Mexican factories or designated stuffing yards near manufacturing hubs. These containers are then transported by truck to intermodal rail ramps and shipped by rail to various destinations including Los Angeles, Chicago, Detroit, and Toronto.
Upon arrival, the containers are trucked from the rail ramps to designated yards, where the vehicles are unloaded and further transported to dealerships. This door-to-door transit typically takes between eight to 14 days depending on the route. It is projected that this new service will facilitate the transportation of an additional 30,000 finished vehicles between trading partners in 2024.
Unlike traditional 40-foot containers, which can hold a maximum of four cars, the 53-foot containers can accommodate up to six vehicles, resulting in increased efficiency and cost reduction for Original Equipment Manufacturers (OEMs). DP World is currently the sole provider of this innovative intermodal 53-foot container solution for finished vehicles.
This development comes at a crucial time for the automotive logistics industry in North America, which has been grappling with challenges such as capacity shortages in ro-ro (roll-on/roll-off) and multilevel railcars. These shortages have spurred the demand for alternative outbound solutions.
Mexico has emerged as the top trading partner of the United States, surpassing China in 2023, largely due to the strong cross-border relationship fostered by Mexico's thriving manufacturing sector, especially in automotive production. The enactment of the United States-Mexico-Canada Agreement (USMCA) in 2020 further bolstered this partnership.
Since the start of 2024, DP World has already transported over 5,000 cars across the Mexico-U.S. border for American and Japanese OEMs with manufacturing operations in Mexico. This underscores the company's commitment to providing innovative solutions to meet the evolving needs of the automotive industry in the region.
“Our extensive experience shipping cars in containers worldwide, the large racking fleet we can deploy globally within weeks, and our expert teams and hyper focus on quality and service have enabled DP World to provide this unique solution in a challenging environment. Our initial volume shipments this year have proven concept that the 53-foot intermodal solution is a viable alternative during times when traditional capacity is tight, so we decided to officially offer the program to the wider market,”said Christoph Seitz, Global Vice President Finished Vehicles at DP World.