UPS Wants to Help Customers Solve U.S.-Mexico Cross-border Trade Challenges

Discussion in 'UPS Pressroom News' started by ROBO MOD, Jan 11, 2016.


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    • Streamlines portfolio for shipments of all sizes
    • Creates new, single Power of Attorney to remove customs barrier
    • Adds delivery guarantee to less-than-truckload freight shipments

    UPS® (NYSE:UPS) strengthened its cross-border services to help U.S. exporters capture new opportunities in Mexico, and Mexican exporters to increase trade with the U.S. 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 cross-border 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.”

    UPS has the broadest range of services between the U.S. and Mexico, giving shippers more flexibility of choice from one carrier.

    “With UPS’s acquisition of Coyote Logistics in 2015, shippers gained Coyote’s leading technologies for truckload services, giving customers the ultimate in visibility and confidence,” Cubias added. “UPS has seen nearly a 20% increase in customer requests for U.S.-Mexico cross-border movements.”

    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.

    U.S.-to-Mexico trade includes the same industries. Growth of the Mexican middle class means in the future more volume will go from the U.S. to Mexico from the healthcare and retail industries.

    “The U.S.-Mexico trade lane is vibrant so UPS is investing ahead of market shifts,” said Cubias. “Shippers see trade between borders as complex, but we can help customers streamline and improve their supply chain. And, because we offer pickup and delivery service in every postal code across both countries, we provide true end-to-end service.”

    U.S.-Mexico Service Enhancements

    As of January 2016:

    • UPS Freight® LTL is renamed UPS® Standard LTL. UPS also introduced a new delivery guarantee when UPS is the customs broker.
    • UPS Air Freight Consolidated® and UPS CrossBorder Connect® LTL shipping services are renamed UPS Worldwide Expedited™ Ground Freight. This new general service offering has a delivery guarantee when UPS is the customs broker.
    • UPS Air Freight Direct® is renamed UPS Worldwide Expedited™ Air Freight and is a general service offering with a delivery guarantee when UPS is the customs broker.
    • UPS CrossBorder Connect® FTL is renamed UPS Worldwide Expedited™ Truckload.
    In addition, UPS offers

    • A new, single national Power of Attorney in Mexico that today covers 27 ports of entry so shippers have less paperwork for more efficient customs clearance into the country.
    • A cross-border portfolio with more time-in-transit options than any other carrier.
    • Truckload service between the U.S. and Mexico for a complete offering.
    UPS began operating in Mexico in 1989. Today, UPS has more than 2,000 employees in Mexico and brokerage operations in more than 20 Mexican cities. In 2014, the accuracy rate for customs entries on small package shipments UPS moved into and out of Mexico was 99.8%.

    Our long history in cross-border movements plus the improvements we made to our ground freight services -- such as the addition of guarantees and truckload via Coyote Logistics -- gives us confidence we can support shippers better than ever before,” Cubias said.

    *U.S. Department of State