Borderlands: Mundi Launches Funding Tool for Mexico-Based Freight Forwarders



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Borders is a weekly recap of developments in the world of cross-border trucking and trade between the United States and Mexico. This week: Mundi launches a financing tool for freight forwarders based in Mexico; more manufacturing jobs are heading to Mexico; Dachser Mexico provides cross-border services to a tuna shipper; and CBP publishes an operational update on cross-border trade.

Mundi launches a financing tool for freight forwarders based in Mexico

Financial services platform Monday recently launched a digital factoring solution for Mexico-based freight forwarders who export goods to the United States.

The New York-based startup said its non-recourse factoring solution could provide financial services that give transportation and logistics companies the capital to start operations as the global trade market continues to recover from the crisis. pandemic.

“We are now at a 3% higher level at the start of the pandemic, and with the entry into force of the United States-Mexico-Canada agreement, we believe that growth will continue in the years to come”, Martin Pustilnick, CEO and co-founder of Mundi, mentioned.

Founded in 2020, Mundi focuses on small and medium-sized Mexican exporters who ship to the United States, with the aim of reducing the risks and inconsistencies associated with many B2B transactions in the cross-border market.

Big banks have traditionally been the primary lenders in global trade finance, including supply chain finance, historically funding over 80% of transactions.

Big banks began to slowly withdraw from the industry over a decade ago, in part due to an increase in capital requirements – such as Basel III regulatory requirements – caused by the 2008 global financial crisis. .

Regulatory changes have been initiated by governments around the world. In July 2013, the Federal Reserve Board finalized a rule to implement the Basel III capital rules in the United States

The loss of funding from the big banks has resulted in a $ 1.5 trillion trade finance gap in global supply chains, according to Pustilnick.

Revenues for the global trade finance industry could exceed pre-coronavirus pandemic levels to reach $ 54 billion as early as 2022, according to a forecast by Coalition, a research company owned by S&P Global.

Mundi recently hosted a webinar titled “Key Freight Forwarding Industry Trends for 2022,” in which officials said 80% of Mexico’s export market is concentrated to the United States.

Pustilnick said there is untapped potential with small and medium-sized business (SME) exporters in Mexico in need of financial support.

One of the differences between a bank and Mundi’s factoring solution is that banks often only focus on large companies, while Mundi works with SMEs and has a 100% digital application process.

Paulina Aguilar, director of Mundi in Mexico, said her international factoring tool is focused on SMEs by giving them access to capital with longer payment terms and other benefits.

Mundi’s non-recourse factoring solution also enables freight forwarders and logistics companies to offer payment terms to their customers and receive payment immediately, without risking default.

Aguilar also said that traditional banks analyze financial history, while Mundi also takes billing and export information into account.

“One of the lessons we have learned from the COVID-19 pandemic is that the most agile organizations that are best suited to the new business environment will survive,” Aguilar said. “It also influences the way companies solve liquidity problems, demonstrating that traditional banking is falling short of the current needs of exporters and freight forwarders who are still growing.”

More manufacturing jobs in Mexico

Kawasaki Heavy Industries Ltd. and HNI Corp. recently announced new or expanding manufacturing facilities in Mexico that will create approximately 800 jobs.

Tokyo-based Kawasaki is expanding an existing motorcycle engine plant in the Mexican city of Monterrey to be completed in 2023. It will complement Kawasaki’s motorcycle plant in Lincoln, Nebraska, which the company is also developing. ‘enlarge.

Kawasaki will invest a total of $ 265 million in Monterrey and Lincoln.

The expansion in Monterrey could generate up to 550 jobs. Kawasaki did not specify how many jobs would be added at its Lincoln plant.

Muscatine, Iowa HNI Corp. is investing $ 18 million to build an office furniture manufacturing plant in Saltillo, Mexico.

The plant, which is expected to be completed in 2022, will create 250 jobs.

Dachser Mexico provides cross-border services to tuna shipper

Logistic provider Dachser Mexico will oversee the transportation of Tuny brand canned tuna products to the United States.

Tuny is produced by Grupomar SA, based in Mexico City, a family of companies producing canned and frozen products marketed under various brands. Grupomar also owns and operates tuna vessels and longliners.

Dachser Mexico provides trucking services from a Grupomar warehouse in Monterrey to its final destination in Laredo, Texas.

In addition to providing trucking services, Dachser Mexico also manages full container ocean freight shipments for Grupomar. FCL’s cargo will be unloaded from the Mexican port of Manzanillo to various ports in New York and Los Angeles, as well as San Juan, Puerto Rico and Puerto Caldera, Costa Rica.

Dachser USA Air & Sea Logistics is a unit of the Dachser Group based in Kempten, Germany, which provides transportation, logistics and warehousing services in maritime and road solutions.

CBP issues operational update on cross-border trade

During fiscal year 2021 to date (October to August), United States Customs and Border Protection processed $ 2.6 trillion in imports, an increase of nearly 15% over the same period in 2020.

CBP also seized 77,416 shipments for trade offenses during the current fiscal year.

Trade via sea shipments accounted for over 40% of the total value of imports, followed by air, road and rail transport.

CBP also seized 2,186 shipments in August that contained more than $ 300 million in counterfeit goods.

Drug seizures at ports of entry had mixed results in August, with heroin seizures down 36%, while seizures of fentanyl increased by 34%, cocaine by 32% and methamphetamine by 13%.

Click for more FreightWaves articles by Noi Mahoney.

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