Growing business activity along with consumer demand inside Mexico is indeed driving increased demand when it comes to southbound freight flows from the U.S., says a report from Redwood Cross-Border Index, which happens to be a fourth-party logistics provider that’s Chicago-based.
This trend happens to be powered by the expanding retail sector that is witnessed across Central Mexico, which is anchored primarily due to Walmart de México and also certain ongoing nearshoring trends, the company went on to confirm in the Q3 2025 Redwood Cross‑Border Index.
More specifically, Mexico’s geographic region, which is defined due to the fast‑growing Bajío–Mexico City–Querétaro corridor, happens to be emerging as a very fast-developing as well as significant economic region. In response to this, the manufacturers in Mexico’s Bajío region are also widening their operations in order to meet the demand of consumers that are concentrated from Querétaro to the Valley of Mexico. This sort of growth mirrors the Texas Triangle of the US, which is Houston, Dallas-Fort Worth, Austin, and San Antonio, which offers some prominent capacity as well as labor to help commerce in both directions.
Together, the effect of the Twin Triangles is drawing more southbound freight flows from the U.S to Mexico, and at the same time also motivating carriers that operate south of the border to actively look out for southbound shippers so as to attain a network balance. This kind of macro resilience is evident in spite of the tariff concerns, since the economy of Mexico grew by 0.7% in Q2 as compared to 0.2% in Q1, with the foreign direct investment (FDI) as well as venture investment going ahead and showing an upward trend, offering robust support for manufacturing and also retail replenishment across Central Mexico.
According to President of Redwood Mexico Operations Jordan Dewart, the transformation of Mexico into being the primary trading partner of the US continues, undeterred by the past, present, or even future barriers for that matter. This kind of ongoing investment south of the border is actually going ahead and shortening the cash cycles for companies across both countries, thereby fueling economic growth in the middle of turbulence.
Dewart added that there are hundreds of people flocking to Querétaro every day and rapidly transforming the area into a very prominent retail hub with growth in consumption that’s increasing by the day. In order to effectively meet the expectations of this demand, and that too in the middle of the growth, logistics service providers must go ahead and strategically integrate themselves more deeply within Mexico, thereby moving far beyond just the border operations.
