UPS Wants to Help Customers Solve U.S.-Mexico Crossborder Trade Challenges
UPS strengthened its crossborder services to help U.S. exporters capture new opportunities in Mexico, and Mexican exporters to increase trade with the U.S., the company announced today.
The global logistics company aims to solve the complex problem of how to move freight and packages more efficiently and reliably on this important trade lane.
The U.S. is Mexico’s largest trading partner. Mexico is the United States’ second-largest export market, after Canada, and its third-largest trading partner. Every day, some $1.4 billion is exchanged in commercial trade between the U.S. and Mexico.
Growth in manufacturing and the middle class in Mexico, increases in ecommerce shipments and the rise in intermodal crossborder shipments between the U.S. and Mexico drove UPS’s renewed focus on the trade lane. In 2014, UPS established a center of excellence for U.S.-Mexico trade. A team of experts evaluated and improved offerings, focusing on shippers’ needs.
“We reengineered and aligned our capabilities for more flexibility, reliability, visibility and simplicity,” said Carlos Cubias, vice president of the UPS center of excellence. “Shippers now have the same service options—express, expedited or standard—for all shipments regardless of size. In addition, UPS is the only carrier with delivery guarantees for LTL and package shipments when we are the customs broker.”
The UPS acquisition of Coyote Logistics in 2015 brought Coyote’s leading technologies for truckload services, giving customers enhanced visibility. “UPS has seen nearly a 20-percent increase in customer requests for U.S.-Mexico crossborder movements,” said Cubias.
Automotive, manufacturing, aerospace, and high-tech are the priority industries UPS serves out of Mexico. “Small and medium-sized enterprises in Mexico have a lot of opportunity to grow through exports and UPS has solutions to help them,” said Agustín Picado, UPS’s country manager for Mexico.
UPS has also introduced a number of innovations that help expedite crossborder ground movements in and out of Mexico. One is to carry shipments in bond across the border, so they are not delayed there, and then have them clear customs at an airport.
“Inspections at the border cost a day of delay at least,” said Cubias. “Clearances at airports are more efficient and are often much closer to customers’ facilities. Customers that were paying for expedited air service can now can get the same level of service on the ground.”
A second innovation involves a new, single national power of attorney that covers 27 ports of entry so shippers have less paperwork for more efficient customs clearance into the country. “Customs brokerage is a fragmented business in Mexico and we work with many of them,” said Cubias. “We worked closely with the brokers we work with to come up with a uniform power of attorney so that shippers sign up once and this allows them the opportunity to clear at any port in Mexico. We believe this is an industry first.”
UPS’s overall goal is to simplify what might otherwise be a complex U.S.-Mexico crossborder shipment. “Shippers see trade between borders as complex, but we can help customers streamline and improve their supply chain,” said Cubias. “And, because we offer pickup and delivery service in every postal code across both countries, we provide true end-to-end service.”
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