18 July (Lloyd's List) - SOUTH Korea’s HMM and Singapore-based Ocean Network Express have jointly launched a new service between China and Mexico, citing an expected boom in near-shoring demand amid changing trade patterns.

“Our new Far East-Latin America Express (FLX) service is designed with the expectation of nearshoring in Mexico,” an HMM official told Lloyd’s List.

“The volume of shipments from China to Mexico is expected to grow rapidly. Unlike existing networks connecting Asia and South America such as the New West Latin America services, FLX is totally focused on Mexico.”

The move comes as trade between China and Mexico has surged in recent years, with Chinese manufacturers increasingly using Mexico to circumvent Washington’s tariffs on their goods.

According to Container Trades Statistics, imports from China to Mexico in January 2024 were 60% higher than 12 months earlier, rising from 73,000 teu to 117,000 teu.

That followed data from the US Census Bureau, indicating Mexico had overtaken China as the primary trading partner for US imports by value in the first quarter of 2023.

Recent news indicates that the US is stepping up its efforts to crack down on goods originally produced in China but entering the country from Mexico, such as steel products.

Such efforts could prompt frontloading shipments to arrive at their destination before the duties take effect.

The first voyage of the FLX will depart from the port of Shanghai on August 16, with the round trip taking a total of 42 days. The loop will be operated by 4,000 teu container vessels. The port rotation will be as follows Shanghai-Busan-Lazaro Cardenas(Mexico)-Busan-Shanghai.

Prior to HMM and ONE, French carrier CMA CGM also launched a direct China-Mexico express service in May 2024.