Maersk’s LatAm Nearshoring: Myths vs. 2026 Reality

The discourse surrounding nearshoring in Latin America (LatAm) is rife with misconceptions, particularly as we approach 2026 and examine the strategic shifts Maersk and other logistics giants are working through. Much of what is commonly believed about supply chain relocation to the region simply misses the mark, creating distorted expectations and hindering effective planning.

Myth 1: Nearshoring is only about cheaper labor.

This is perhaps the most persistent and misleading notion. While labor cost differentials certainly play a role, particularly in sectors like manufacturing, the primary drivers for nearshoring to LatAm by 2026 have fundamentally shifted. Companies are now prioritizing supply chain resilience and speed to market above all else. The disruptions experienced during the early 2020s, from port congestion to geopolitical tensions, exposed the fragility of extended global supply chains. A report by the Inter-American Development Bank (IDB) in 2024 highlighted that over 60% of surveyed companies considering nearshoring cited reduced lead times and enhanced supply chain control as their top two motivations, with labor costs coming in third. For example, a major automotive components manufacturer recently relocated a significant portion of its assembly operations from Asia to northern Mexico, specifically within the Monterrey industrial corridor. Their decision was not predicated on a drastic reduction in labor expenditure, but rather on cutting shipping times from 40 days to 4 days and gaining greater oversight of production quality. This allows them to respond to demand fluctuations with unprecedented agility. The cost savings from reduced inventory carrying costs and avoidance of air freight for urgent shipments often outweigh any marginal labor cost increases. It’s about total landed cost, not just one input.

Myth 2: LatAm’s infrastructure cannot support large-scale nearshoring.

The idea that Latin America lacks the necessary infrastructure is outdated. While challenges certainly remain in certain regions, significant investments have been made, and continue to be made, in key nearshoring hubs. We are seeing a concerted effort to upgrade ports, expand highway networks, and develop modern logistics parks. Consider the progress in Mexico. The country’s northern border states, such as Nuevo León and Coahuila, have witnessed a surge in industrial park development, integrating warehousing, cross-docking facilities, and customs services. According to data from the Mexican Association of Industrial Parks (AMPIP) in 2025, the capacity of logistics infrastructure in this region has increased by 35% since 2023, specifically to accommodate nearshoring demands. Similarly, Brazil’s southeast region, particularly around São Paulo and Rio de Janeiro, has seen substantial private and public sector investment in port modernization and highway expansion. The Port of Santos, for instance, has continually upgraded its container handling capabilities, allowing for greater throughput and faster turnaround times. To assume a uniform infrastructure deficit across the entire continent ignores these targeted, strategic developments. Companies like Maersk have directly invested in expanding their logistics footprint, including cold chain solutions and warehousing, in these very areas, recognizing the existing and growing capabilities. It’s a chicken-and-egg situation. Demand drives investment, and investment enables demand.

Myth 3: Customs processes and bureaucracy make LatAm nearshoring too complex.

Another common misconception involves the perceived labyrinthine customs procedures and excessive bureaucracy. While working through international trade regulations always requires expertise, many LatAm countries have made considerable strides in modernizing their customs operations and simplifying trade processes. The Pacific Alliance (Chile, Colombia, Mexico, Peru), for example, has been at the forefront of digitalizing trade procedures and harmonizing regulations. Their efforts aim to create a more integrated and efficient trade bloc. A 2025 World Bank report on ease of doing business noted a 15% average reduction in customs processing times for goods moving between these member countries over the past three years due to digital initiatives and single-window systems. Plus, many countries now offer specific programs and incentives for foreign investment, including simplified customs clearance for companies participating in designated economic zones. Mexico’s IMMEX program, which allows for temporary import of goods for manufacturing without tariffs, has been instrumental in facilitating cross-border production. It’s not about an absence of regulations, but rather the availability of established frameworks and experienced local partners who understand how to navigate them efficiently.

Myth 4: Nearshoring to LatAm is primarily for low-tech manufacturing.

This myth severely underestimates the growing capabilities and diversification of LatAm’s industrial base. While textiles and automotive components remain significant, the region is increasingly attracting investments in higher-value, more technologically advanced sectors. We are seeing a notable increase in nearshoring for electronics assembly, medical devices, and even aerospace components. Companies are using the growing pool of skilled labor, particularly engineers and technicians, graduating from technical universities in countries like Mexico, Brazil, and Costa Rica. For instance, Costa Rica has become a hub for medical device manufacturing, attracting major global players due to its educated workforce and stable political environment. The country’s commitment to education and specialized training programs has fostered a highly skilled labor force capable of handling complex manufacturing processes. On top of that, the services sector, including IT, software development, and business process outsourcing (BPO), is experiencing a significant nearshoring boom. Forecasts suggest that the services sector will account for 25% of new nearshoring investments in LatAm by 2027, moving beyond traditional manufacturing. This shift reflects a recognition of the region’s intellectual capital and digital infrastructure.

Myth 5: Geopolitical instability makes LatAm a risky nearshoring destination.

The perception of widespread political instability across Latin America often deters potential investors, but this view oversimplifies a diverse continent. While some countries do face political and social challenges, many others offer remarkable stability and a predictable business environment. It is important to differentiate between countries and regions. Nations like Chile, Uruguay, and Costa Rica consistently rank high in indices of political stability and ease of doing business. Even within larger countries, specific industrial zones and economic corridors often benefit from strong local governance and security measures designed to protect foreign investments. Take the Bajío region in Mexico, a major manufacturing hub for the automotive and aerospace industries. Despite broader national concerns, this region has maintained a relatively stable environment for decades, attracting significant foreign direct investment due to its established industrial ecosystem and supportive local governments. Investors conduct thorough due diligence, of course, but a blanket assessment of “instability” for the entire region misses the nuanced realities on the ground. Many companies find that the benefits of proximity and resilience outweigh the perceived risks, especially when compared to the escalating geopolitical uncertainties in other parts of the world. My experience tells me that most companies are perfectly capable of distinguishing between general regional headlines and specific investment conditions in a particular city or industrial park. In conclusion, the nearshoring field in Latin America is far more sophisticated and opportunity-rich than many prevailing myths suggest. Businesses must move beyond outdated perceptions and engage in thorough, localized assessments to capitalize on the region’s evolving potential for supply chain optimization.