Hello, everyone, and thank you for joining us. We're so happy to have you with us today. We are going to be covering our Expeditors' Mexico Air and Ocean Market update. We are glad to have you in attendance, and we are going to go ahead and get started here in just one moment.
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Finally, you can also subscribe to get further information about our future events and market updates through our QR code, and I'll drop the link in the chat here shortly. Now to introduce our speakers, we have with us Eduardo Alba. He is our Regional Manager for Air Services for Mexico and the U.S. Southern Border, as well as Lorena Rosani, who is our Regional Manager for Ocean Services for Mexico and the Southern Border. We're very happy to have them with us today, and they're going to share their expertise on Mexico and what's going on with air and ocean. Eduardo, I will pass it over to you to get started.
Thank you very much. I hope the information today is useful for all of you. Can we go to the first slide, please, Samantha? As I speak to customers and carriers alike, it's undeniable that there is a lot of anxiety regarding what's going on in both the political and economic world. Of course, I cannot talk expertly about both politics and tariffs, but I will do my best to explain what we're seeing in the market in order for you to make educated decisions and try to avoid speculation and just try to see what's in front of us, what we can actually describe based on the facts that we're seeing. We're coming from a year 2024 that was relatively stable in regards to demand, economic growth in Mexico, United States, and other countries.
Also, it was a relatively stable year in the relationship of capacity and demand in Mexico. We're going to go a little bit deeper as we go along. Some of the things that we've seen and the challenges that we thought that we were going to have at the beginning of the year had to do a little bit with e-commerce, having the United States and all across the world, Mexico also in particular, a big impact in both supply and demand, particularly as it relates to Asia. We've seen an increase of 4% of supply over the past four weeks. The only volatility has to do a little bit with the beginning of the year and the Chinese New Year. The further capacity worldwide was a little bit down. I'm going to dig deeper into the Mexico.
Definitely, the situation with tariffs and whatnot has to do with—has an impact on how we plan, although we probably did not expect some of the things that are going on and how that has been impacting the economy. The one thing is we were all expecting a little bit more moderate growth. Can we go to the next slide? Please. Again, we can see that worldwide, the relationship between capacity in the past few weeks 4% growth, and only the freighters and integrators were down. Again, it can be explained by what happened at the beginning of the year, demand going down a little bit, and of course, the Chinese New Year.
I want to use this more as a base to make a comparison with what's going on with the Mexican market and how it worked in the past 12 months and the trends that we are seeing in the past three months. If we can go to the next slide, Samantha, please. One thing in particular about Mexico and demand on the Air Services is that on the export side, not just now, but since 2019, we're seeing a slowdown of the export. It has to do with a number of things going on. Even compared to 2019, the demand on the export side of air is close to 19% down. It was down 9% during the entirety of 2024. That compares with 6% growth on imports. As we're going to see, a lot of it has to do with just one with China.
The total trade is down 3.5%. We need to keep this in mind because this is not just what we see as Expeditors. This is what the airlines see as they make their planning on how they're going to address capacity as they move forward. Can we go to the next slide, please, Samantha? As you can see, and I'm making this a little bit of a more extended period comparison of 2019 to 2024 because, again, it gives you more of a wider range view on how the airlines and the carriers and everyone can see the market. We can see that there's a tremendous imbalance even when it comes to China. If we go to China in particular, we have a 55% decrease from 2019 to 2024 on the demand.
It was coming from a base in which there was already imbalance in 2019. We've always had imbalance with China. The imports grew by 47% in that same period of time. One of the many things that it means is that supplies coming from China are coming in production. Actually, we've seen different trends in the market, like, for instance, Chinese airlines or other airlines coming directly into the Mexican market, which did not just happen three, four years ago. We are also seeing that those same flights do not go back at full capacity. There is excess capacity going out on those flights. This happens in Mexico City, Guadalajara, and even Monterrey. If we go into all the other origins and destinations, we can see in general a slowdown for the German market, a little bit of a flat with the United States.
The only country that has been increased and actually is balancing itself out is Brazil because 2024 was a great year for exports. Also, it was a good year for the imports. That was a little bit imbalanced prior to 2024. Now, when we think of Brazil, we need to also understand that a little bit of that has to do with infrastructure in Brazil, ocean ports being very congested. We cannot make plans on how that's going to look like in 2024 real well. The main feature, and we can go to the next slide, please, Samantha, is that on the Chinese imports, the majority of the demand comes from e-commerce, from the Temus, from the Sheins, all these big companies that are selling a lot of product into Mexico. It has completely turned around the Mexican market when it comes to APAC.
Things that we've seen, as I mentioned, capacity on the freighters has changed the dynamic completely on how we brought products from China and Asia in general. Around the time of 2019, before the pandemic, and even during the first years of the pandemic, the majority of the imports coming from Asia came via Los Angeles. Los Angeles was, because of all the demand and all the capacity between China and the United States, Los Angeles was a great place to consolidate cargo to Mexico, Guadalajara, Monterrey, and all the Mexican market in general. There used to be great capacity on different airlines coming from Los Angeles and Guadalajara, mainly that around the time of 2020, 2021, we had three airlines, and they all had about five to six flights per week on freighters. That was more than enough capacity to service this market.
Because of several things going on, one of them being the change of Mexico City airports. Now we have a new one in the Mexico City airport. There were some connectivity issues that make it difficult for these airlines. We saw that Aeromexico pulled together the freighters from Los Angeles to Mexico. The remaining two airlines, AeroUnion and MasAir, they pulled substantial capacity. A lot of these companies pulled more than 50% of the total capacity from the market. That is when the Chinese, when Cathay, China Southern started to come into Mexico City and Guadalajara and now some other different airlines. That changed the dynamics on how we bring products from China. Not only that, these flights come extremely congested because these e-com companies purchased probably more than 50% of the capacity from Asia on hard block agreements.
The logic of how they purchased this capacity is a little bit different than what we see in general in the market. They are not as concerned as the freight as they are concerned about securing this capacity. They can go out and purchase at rates that are probably a little bit higher than what other industries tend to purchase. That brings the remaining of the capacity, the price of the remaining of the capacity up on the inputs. What we see in general is that there is substantial congestion in Mexico City, in Guadalajara, and also we not only see congestion on the aircraft, we see substantial congestion on the ground when it comes to the Mexico Customs. Even in NLU, that is a new airport, at different points in time, we've seen severe congestion on those airports.
Definitely, the imbalance, again, it puts pressure on the rate coming inbound. Although we can see that there are very competitive rates outbound of Mexico. At this very point, there's still very high demand coming from China, very, very high demand, even though there's been rates due to rates imposed by the Mexican government to China, but that hasn't slowed down the demand, as we think. Definitely, because of that, when we made the comparison on the previous slides, we can see that the airlines, several of them, are moving their fleet to attend this market, the e-com market, rather than other markets that are less profitable for them. There's a question of profitability in play that makes some of these airlines move their planes into this market and pull it out of different markets.
We're going to see a little bit in the next slides of how that works. If we can go to the next slide, Samantha, please. Going a little bit into how it looks on, and I took a three-month sample and a little bit of a comparison with the entirety of last year to see what has been the reaction of the airlines to what I've been trying to explain to you in the past few slides, which is, again, that 2024 was not a great year for air freight, particularly air exports out of Mexico and Guadalajara, and these market conditions that we're now facing. Guadalajara, we can see that both in the last three months and in the entirety of 2024, airlines pulled capacity at a rate of 9% from the Guadalajara market. What this means to the Guadalajara market, well, different things.
It alters some frequencies. It alters the ability to connect with different—sorry about the sound—to different flights across the world. Definitely, when we're making some calculations, and we have had these conversations with some customers, there is the expectation that because the market is slowing down a little bit, and there's a threat that it might slow down a little bit more because of tariffs, there is an expectation by some companies, by some people, that this could bring the prices of the air freight rate down. If the airlines keep pulling capacity, then this might change in a completely different direction because then we're going to be struggling to get capacity. Guadalajara probably is one of the markets that we've seen is a little bit more acute. Can we go to the next slide, please, Samantha?
In the case of Mexico City, and here we need to address two airports, Mexico City and NLU. As you all know, Mexico City is only daily passenger capacity. Although we've seen that the passenger market remains very healthy, in the past three months, we've seen capacity down in the Mexico City airport. Very difficult in the case of Mexico City to make a comparison of the past three months with the entirety of 2024 because since we pulled all the freighter capacity out of this airport, we lost 53% of the capacity in that airport. I think it's very telling that even on passenger daily capacity, we have been losing some capacity in the market. Can we go to the next slide, Samantha? Now, on NLU, and here's where we're seeing some of the effect of e-com and the things that are going on right now.
It's a new airport, and yet in the past three months, it has lost close to 15% of the capacity. This is exclusively freighter capacity. What we're seeing is airlines such as Qatar pulling almost entirely all of their frequencies. Also, we're seeing some other airlines that are telling us that they're struggling to fill their entire flights, and that is altering their frequencies. They're sheltering some of their scheduled flights that are not flying because of lack of demand or cargo in the airplanes. We're waiting to see how the airlines are going to keep reacting to this reality in NLU as well. There's also another thing that is going on is that we're seeing that the rates in Mexico City, say, for instance, market like Europe, that is served almost 50% by passenger capacity and 50% on freighters.
We're seeing now a huge gap in rates between passenger that doesn't have the pressure because it's paid by the passengers. We're seeing the rates going up or at least keeping at the same level in NLU. Can we go to the next slide, Samantha, please? One thing that we need to consider is that now with this structure that we have with two airports, we need to navigate different dynamics of the two different airports on how they work. It is in the best interest of every company to be able to do business on these two airports. Definitely, NLU is driven by cargo. It has lost connectivity because they cannot bring, in the case of these Mexican airlines that I was telling you coming from Los Angeles, they have much better routes because they could bring some produce and different products from South America.
Now, on passenger flights, on interline agreements, now they can't. That affects their profitability. Definitely, NLU is more successful to e-com. The Mexico City airport has become a little bit more reliable because it depends a little bit more on travel. Although we can see seasonality, particularly when it comes to markets like Brazil, we see payload issues through the year. When it gets a little bit warmer, these wide-body airplanes lose a little bit of their payload. That makes it a little bit more unreliable. All in all, we're seeing more reliability on Mexico City airport and passenger capacity. Can we go to the next slide, Samantha?
Lastly, Monterrey, even though we saw a huge growth in capacity in 2024, and a lot of companies getting a lot of interest because of nearshoring and business with China, we saw a 5% drop of capacity in the past three months. Not just the new year and what happened in January, but we're seeing this happen across the board in a more sustained period. That is one thing that we need to keep in mind. We saw in 2024 that Lufthansa made a big investment with two flights going to Europe. That makes Monterrey a lot less dependent on Mexico City and Dallas to get capacity. That is a good thing for the market. Can we go to the last slide, Samantha? Finally, a couple of things. Again, as I mentioned at the beginning of the presentation, there's going to be a lot of speculation.
We understand that right now, for many companies, planning is difficult. Requesting for forecasts is complicated because of the threat of tariff, there's uncertainty. Companies are looking for different sourcing in different parts of the world. They're looking for different markets to sell product, to diversify and protect against tariff. We still see a lot of e-com taking the percentage of the existing capacity. There is a danger of price instability. There are going to be capacity decisions, meaning what airlines fly from where to where is going to depend on how demand looks. That is going to make it for us very challenging in 2025. What we can do for you is we, as Expeditors, because we're non-asset-based, and in these moments, we think that this is a much better strategy. We have a mix of different airlines carriers.
We have a wide footprint, and we don't rely on just one airline, or we don't rely on our own equipment. We have a different layer strategy on how we purchase this capacity on different spot purchases, additional capacity purchases, and, of course, soft block agreements, hard lock agreements that allow us to provide some stability to a market that's going to be a little bit unstable. We have a wide-tailored footprint and relationship with trusted airlines. We don't do crazy things to try to get capacity. Our non-asset-based model brings flexibility and adaptability. Definitely, if we don't compete like some of our competitors, if we don't bring our own equipment into different markets, that's going to be always very appreciated by the airlines.
The fact that we're not stuck with trying to make our own flights profitable, that enables us to have a much better chance to get capacity in the market than someone that is competing directly with the airlines and then trying to purchase capacity. Our network remains very strong. Definitely, our customer service and communication on the things that are going on is going to be paramount to help you through what looks to be a very complicated 2025. If you have any comments or questions, I'll be more than glad to answer to you either on this forum or if you want to email me directly, I will be more than glad. Thank you very much for your time today.
Thank you, Eduardo. Lorena, we'll let you take over from there.
Thank you, Sam. First of all, I will start with sharing some interesting information in regards to the ocean market on a global scale, and then going further into the Mexican market. Starting with the capacity side, overall, we saw an increase of approximately 27% in the order book in regards to the amount of fleet that is going to be deployed in the upcoming years. This specifically is going also to be shown and directly have an effect on the Latin America region where Mexico relies or is part of. Just to give you a comparison, in Q1 2025, in comparison to the same period, 2024, we saw a growing capacity of 20%.
More now than ever, the ocean carriers have a close look into the Mexican market, not only from an economic standpoint, but as well as an increase on the purchasing power of the Mexican market by itself. This is also in line with several expansion projects, one of which is the Manzanillo Port expansion into Cuyutlán Lagoon, as well as the Lázaro Cárdenas APM terminal expansion, which specifically into this specific expansion in Lázaro Cárdenas. It is foresaw that it is going to end by 2027. This means that in a very short-term period, we are going to have an increase in the capacity of both ports. Specifically, Lázaro Cárdenas is going to have, with this port expansion, a 4 million TEU capacity, dynamic capacity. In comparison, Manzanillo, once this project ends by 2030, is going to have a 10 million TEU capacity.
By this, I mean that going into what I just mentioned, not only the ocean carriers, but itself, the government as well, also looking into how we can portray a better capacity into the market as a whole. Now, going in terms of the demand, it's important to note that the demand has also increased in 2024. This is by 7.7%. It is also foreseeable that this is going to be somewhat in line, but not as close as in the capacity side. I will speak further of this as I go along in this next slide. However, specifically to the demand side, going further into the consumer goods as well as the capital equipment, both industries had an interesting increase in 2024. Surely, we are going to see some dynamics change in this specific and other industries just by the current geopolitical situations.
However, there is still some optimism in terms of what this is going to bring. As we mentioned, Mexico is one of the few countries in the world that has the most commercial agreements with several countries. This, by all means, can only mean that we have somewhat of an opportunity to keep close contact with our main trade partners. Also, in figures in 2024, the last that we saw trend is that Mexico grew 4.3%. Let's see how this first trimester of 2025 ends. Surely, we will have some of a slighter increases than we saw in 2024. Now, going further into some outside factors, just to mention a few topics, which I will also mention as I go along on the next slides. There are different outside factors, disruptors, somewhat of affecting, obviously, or having some effects on the capacity as well on the demand side.
It is projected that the market is going to grow approximately 2.5%. This is going to have some shifts, as I mentioned, and also some political unrest that surely have some specific impacts. It is also important to note, as well as the tariff announcements, let's see how that goes along in terms of the next few months. Next slide, please. Now, going further in terms of the supply and demand, it is just important to note that, as I mentioned on the previous slide, the capacity and the demand both are on a positive trend of sorts. However, there is an important gap to note on the capacity side, being the red line in the graph, where we can see that there is set or predicted to be at a 5.7% by the end of 2025. This is obviously forecasted information.
In comparison, the demand overall, and this is somewhat of a global numbers, where the demand specifically is going to be at around 2.5%. As I mentioned, there is still enough capacity in the market in regards or in comparison to the demand side. This is, as I mentioned, not only in Mexico, but as well as the rest of the regions. Next slide, please. Now, we spoke about some of the industries being impacted on a positive trend in terms of an overall growth. Here we can see, for example, the raw material industry with an important increase in December, as well as the year-to-date analysis. These are figures for 2024. Also important to mention the machinery parts, an important growth as well on December, specifically at a 17%.
A lso important to note that even though the high-tech industry had a slight decrease in regards to December 2024, it is important to note that overall, during the year, it had an important increase in comparison to what we saw with other industries. It is important also to note, being Mexico very in line with the automotive industry, the automotive industry as a whole had also important figures during 2024. Next slide, please. Now, how this projects in terms to specifically Mexico. The figures are somewhat different in terms of what we saw globally. This, as I mentioned, due to different factors and disruptors around the globe.
However, overall, I mean, figures that somewhat portray this specific need, specifically noting that on the high-tech, we did have an increase of 4%, which, as I mentioned, is also in alignment with one of the most, let's say, demanded products here in the Mexican market. Overall, this is someone of the figures that we wanted to show, figures that we will obviously share. This is still, let's say, of a live organic information that we will be sharing as we go along in 2025. Next slide, please. Now, important to note that on the demand side, as we saw on different industries, it is important to note that overall, Latin America, where Mexico, as I mentioned, is part of, had an increase in comparison to the different other regions. It was the region with the most demand, specifically led by Mexico, followed by Brazil.
Overall, the South America trade increased by 15.4%. This is surely a portrait of the foreign investments that we are receiving from different countries, as well, as I mentioned at the beginning, of the different trade agreements that we have with different countries. Surely, this will be somewhat of an effect as we go along in 2025. However, good figures overall with this specific trend that we are showing in regards to 2024. Next slide, please. Now, it is also important to note that we not only saw, as a region, an increase overall, but we also saw an increase per lane. It is important to note that Europe was the trade that had the most increase in regards to other prospective regions. For example, meaning North America as well as Asia.
Whilst both have a positive trend, it is important to note that Europe and India, specifically with an 11.3% increase, is somewhat of a good news overall, as I mentioned. Again, it's important to note that we are a strong market with an increasing purchasing power. Next slide, please. Now, going into what we've spoken in different webinars, mentioning these new alliances and what they are bringing into the market, just to go very briefly into that, 2024, we saw different alliances, mainly with different capacities out there. These are figures on a global scale. However, these are also somewhat in alignment to the Mexican market by itself. By this, I mean that a lot of carriers had direct services into Mexico as well as deployed at bigger vessels.
This is because of the healthiness of the Mexican market, as well as the positive projections that the economic sector had in regards to the Mexican market. Now, going further into 2025, we're seeing somewhat of a shifting on these specific alliances. The capacity as a whole somewhat remains to what we saw in 2024. The carriers are still very optimistic in terms of what is the Mexican market going to bring, not only in regards to the nearshoring effect, but as I mentioned, with the increasing purchasing power of the Mexican market by itself, a lot of influx of foreign persons into the market is also creating somewhat of a boom of sorts, buying of white appliances, to name just as an example, right?
By this, we just want to portray that even though these alliances are already for 2025 set, and for example, the newest one being the Gemini Cooperation has already started. It started in February. This is going to bring somewhat of new solutions in terms of connectivity, ocean connectivity to other markets with bigger vessels, as I mentioned before, and also with, in some cases, faster transit times, not only on the Asian market, but as well as the European one. This is going to bring us a reboost in the economy. Surely, we'll have some good news as we go with 2025 in regards to the capacity. We will see how the demand falls in terms of that.
However, as I mentioned, there is some information out there that still needs to be set in order to have a more definite understanding of what the demand is going to fall into. Next slide, please. Now, we spoke about the demand. We spoke about the capacity. Going further into the different alliances and the different carriers into the Mexican market, it is also important to note that the schedule reliability is still somewhat on the optimal side of things. By this, we mean that it is above or closer to the 50%.
This surely, as I mentioned, the deployment of bigger vessels, the capacity not only injected into the market by the ocean carriers, but as well as the port expansions in Manzanillo, Lázaro Cárdenas Port, and as well some new expansion in Veracruz ports are also going to keep on increasing on improving this schedule reliability as a whole on a door-to-door basis. Just going a bit into this slide, we are showing the global schedule reliability right now figures up to now to January 2025, where we can already see some improvement in regards to or in comparison to January of 2024. This is important to note that this figure is still, or this graphic is still somewhat of a live, organic in terms of what we are looking at in the market right now.
We do foresee that the schedule reliability is going to improve in the upcoming months, just because, as we mentioned during this presentation, there is some important connection implementations from the carriers and from the government as well with the projects mentioned before. Also, this is going to have an important effect on the global average vessel arrivals. By this, we mean that these are going to improve as well as the schedule reliability improves. We can also share some information specific to the Mexican market as we go along on 2025. Next slide, please. Now, important to note that the port status in the main ports in Mexico is on the healthy side of things. Going a bit further into the slide, Manzanillo, for example, which is a port very prone to congestion, has now looking to a port occupation of 80%.
This is in line to different factors. It is well known right now that as the Chinese New Year ended, there's still a recovery period on the volumes once the Chinese factories are all full and open. We are obviously going to see some improvements on the demand side to Manzanillo Port. It is still something that we are looking at on a daily basis, just because this can perhaps shift not so much impacting so much right now, but it is also important to note the healthiness of the port itself. Also, it's important to note that the dwell times are also improving in Manzanillo. This overall is going to improve on the terminal side, as well as on the delivery side of the cargo.
It's important to note as well that even though right now the occupation in Manzanillo, it's around 80% or so for week 10, the port itself has had some increases in regards to January 2024. Surely, we'll be sending some information of the volumes that Manzanillo Port and the rest of the ports have been handling right now. Lázaro Cárdenas Port also has somewhat of a 50% of occupation. Same week 10, this is obviously going to shift on a week-to-week basis. We will surely mention this. We will share this information as we go along during the year. It's important to note that as well as in Manzanillo Port, Lázaro Cárdenas has also been impacted by a positive volume of 4.1%. These figures of January 2024.
However, as mentioned and shown, there is still enough room in Lázaro Cárdenas currently and in the forecoming years in regards to the occupation. Now, going into the Veracruz and Altamira port, it's somewhat been impacted in comparison to previous years. I mean, comparison just January 2024, where there's a slight decrease on the volumes. However, this has been in part with the, let's say, with some demand issues as well as bad weather. I mean, as I mentioned, some global disruptors in this specific part of the coast impacting. However, this is going to be improved in the upcoming weeks just because of the healthiness of the Europe to Mexico trade and also because Veracruz and Altamira port are ports that we are receiving cargo from India even.
This is going to increase the occupation on both ports and is going to take them in a bit of a more optimal cargo flow there. Next slide, please. Thank you. As I mentioned, overall, there are different global disruptors affecting not only the globe, but also specifically Mexico. As we mentioned before, there are some imbalances in terms of the supply and the demand, not only affecting different parts of the world, but specifically Mexico. This is going to be somewhat felt during the time of or the transition of 2024. Also important to note some geopolitical concerns. I mean, it's well known out there that different political and economic factors are affecting the current stability of the country's demand.
However, we do foresee that having a strong economy, this is going to be something that is going to be felt during 2025 as well. Also, important to note that 2024 was the year with the most elections worldwide. This, obviously, has its specific effect as well as very aligned with the geopolitical one. Last but not least, it's important to note that as this new configuration of the carrier alliances brings new services, new products into the market, there's obviously a transition period between these new products. We do foresee that there is going to be some disruptors. We saw at the beginning of the Gemini alliance during February. However, specifically, one of these carriers has mentioned that this is going to be stabilized as we go along into Q2.
We hope to have good news in that specific topic. Some coasts being more impacted directly and indirectly than the other. However, overall, it's somewhat of good to keep on track of these specific outside factors affecting the ocean market. Now, going to the next slide, please. Now, in terms of recommendations as well or in alignment with what we saw on the air market update, we do recommend that let's have a close to accurate forecast. This will create some structure and some stability into what we can foresee in terms of the capacity out there specifically to the Mexican market.
Also, it's important to note that even though there is still enough capacity in the Mexican market or to the Mexican market and outside on the export side as well, it is important to keep on booking all cargo with at least two weeks in advance just to keep on the somewhat of structural and the cargo flow as optimal as possible to avoid any impact regardless if it's on the export or in the import side. Also, it's important to note that there are some PSS and other surcharges being implemented. This specifically on the export side into Latin America or the rest of Latin America. We'll surely have some notices or announcements specific to these surcharges to keep on the conversation going into the implementations that the carriers are going to use not only on the import side, but as well as the export side, as mentioned.
Also, it's important to note that the flexibility and the adaptability of switching between destination ports, meaning Manzanillo or switching to Lázaro Cárdenas Port and vice versa, can also be healthy in regards to any foreseeable or unforeseeable situation in both ports. As well, we can use this same example in the East Coast ports, same instruction or recommendation, better said, into Veracruz and Altamira Port. Last but not least, it's important to note that Expeditors does have a wide carrier footprint. This allows us to keep on the capacity going regardless of any inconsistency, any disruption going out there. Rest assured that we have the best formula put out there in terms of keeping on the healthiness of the supply chain.
It is also important to note that as this 2025 has started being very dynamic, surely we will have the same dynamism as we go along in 2025. Keep close contact with your customer service representatives as well as any future market update announced by our sales teams. I think that will be all from my part. Thank you very much.
Wonderful. Thank you, Lorena. We appreciate all of that valuable information. We are now coming to a time of Q&A. If you all would like to drop your questions into the Q&A box, we'll be happy to address them. I think, excuse me, I think we do have one starting out, Lorena, for you, but a question about dwell time. They were asking, why do dwell time average days, why are they longer with volume detraction? I believe they're referring specifically to Altamira and Progreso. Can you address that?
Yes, sure. Thank you. Due to bad weather impacting mainly Altamira Port, it is right now currently a strong wind season in the northern part of Mexico. This has had an impact on specifically the time at the terminal itself, right? This is why the dwell times are being impacted at the terminal.
Lots of different factors have the impact on these timings, right? Eduardo, the next question is for you. They ask, when exporting air shipments from the U.S. to a direct airport in Mexico, what do they need to know to make sure that their shipment is not held up?
It has to do a lot more with customs brokerage requirements. My suggestion is that you approach our brokerage team, but it has to do with a number of factors. All the documentation, such as certificates, different types of labeling that the product requires. It has to do a lot more with brokerage. There is a really, really wide number of different requirements in Mexico that are very specific to each product with each HTS number. It is going to be a little bit difficult to explain unless I know what exactly the product is, but it is mainly due to brokerage requirements that need to be taken care of before the shipment is sent to Mexico. Not just the United States, but any other country.
That's a great point. Obviously, too, with so many things changing with customs brokerage in both Mexico and the U.S., it's important to also work with your customs brokerage representative to talk through those specifics. We can certainly align you with someone with our team. We are also hosting a Mexico Customs webinar similar to this one next month. I encourage you guys to obviously register for that event and hear the latest in what is changing in Mexico Customs as well. I think that was the last question in our Q&A box, unless anyone else has another one they want to throw out there. Eduardo, Lorena, Renee, also on. Do any of you have any last comments as we wait to see if anyone has a final question?
I was just going to add, excuse me, I was just going to add on that last question that something that we see a lot in Mexico, especially on the airside on delays, as Eduardo said, usually with customs, the one thing that we get all the time is just make sure who is going to be your Importer of Record, right, in Mexico, especially if you don't have an entity in Mexico. That's when we usually see those delays. If you do have an entity in Mexico or a customer in Mexico, it's just making sure that those processes are aligned before sending any air shipment or ocean shipment to Mexico. That's the key.
Perfect. Thank you for that additional information, Renee. I think that's very helpful. Okay. Again, Lorena or Eduardo, any last statements or comments, things that we feel like the group should know, and we can wrap up and give everyone a few minutes of their time back.
No, just if you have any questions, please be sure to send it to us, and definitely we'll look into them, and I'm sure there's going to be a lot of questions. Thank you.
Yeah, same for ocean, and thank you again for your relationship with Expeditors and anything in regards to any further question, any market update. We are sure to help on that. Thank you.
Thank you both so much. We appreciate you providing all of your expertise. I did drop a link into the chat here. If you guys have questions or want to subscribe to, I should say, to future events, you can follow that. I thought I had dropped it appropriately to where it would link for you, but you can follow that to actually find a way to get subscribed to all of our market updates. If there are no further questions, we will wrap up for today. Thank you all for joining us. Again, you will find your survey in your email box in the next few hours. Once you complete that, it will direct you to the landing page where you can get a presentation and recording of today's event. Thank you all again.