Retail Supply Chain Restructuring Reshaping North American Freight Markets
According to a FreightWaves survey of 250 retail supply chain executives, 93% of retail companies plan to expand warehousing and distribution networks in the United States or Mexico, while 85% plan to withdraw at least half of their supply chains from East Asia by 2028. This structural shift is changing the freight market landscape: moving from centralized national distribution centers to regional distribution networks, resulting in shorter freight distances, increased frequency, and creating new freight demand in previously thin markets.
Regional Distribution Networks Bring Structural Changes
The traditional retail supply chain model relies on one or two large national distribution centers, with goods moving from ports in Los Angeles or Long Beach to these centers before being distributed nationwide. The new model establishes multiple regional distribution centers—one serving the Southeast, one serving the Midwest, one serving the Northeast, and one serving Texas and the South. This shift means freight changes from 600-mile long-haul transportation to 200-mile regional transportation, with local freight demand significantly increasing in markets like Nashville, Memphis, Louisville, and others.
Nearshoring Drives Texas as Logistics Hub
87% of surveyed executives indicated plans to launch nearshoring pilots in Mexico within 24 months. All related products enter the U.S. through Texas border crossings, with the Laredo crossing handling more trade value than any other land border crossing in the country. Dallas, San Antonio, Houston, and the broader Texas freight market directly benefit from this trend.
Source: FreightWaves
