CHICAGO: March 14, 2017. UPS 3PL subsidiary Coyote Logistics has opened a new office in metropolitan Guadalajara, Mexico to develop transborder truckload, LTL, and intermodal brokerage services.
According to the U.S. Department of Commerce, nearly US$1.5 billion worth of goods cross the border between the U.S. and Mexico each day under the NAFTA. Approximately 80 percent of U.S.- Mexico merchandize trade crosses via road and rail.
U.S. imports from Mexico contain as much as 40 percent U.S. content, which means U.S. and Mexican-made goods use border crossings multiple times throughout a supply chain process between the two countries.
Coyote provides a network of 40,000 contract carriers to 14,000 shippers based on a partial or fully outsourced supply chain management program, Collaborative Transportation Management (CTM), and a suite of technology solutions.
"The Guadalajara office is a smart expansion for Coyote and our customers," said Coyote president, Jonathan Sisler. "We have been arranging the movement of freight into, out of and within Mexico for years, but this expansion allows us to further develop the intra-Mexico business and execute a broader, more complex array of services to existing and new customers both in Mexico and North America."
UPS said favorable production costs, proximity to North American consumer markets and rising labor costs in China, have prompted U.S. companies to move a portion of their supply chains from Asia to Mexico.
"We are very excited about what this project and opportunity means for Coyote," says Coyote director of Mexico Business Strategy, Jose Fernandez Chavira. "The new Guadalajara office represents a significant step forward in our continued growth and success. Being closer to customers and carriers will put us in a great position to increase our footprint."
The top commodity between the U.S. and Mexico last year was electrical machinery at US$102.6 billion, with US$94.0 billion moved by truck, followed by vehicles and parts with US$43.7 billion moved by rail.
Earlier this month Mexico Secretary of Commerce Ildefonso Guajardo Villarreal reiterated his government's opposition to additional tariffs or quantitative restrictions on trade with the U.S.
Villarreal said that thanks to NAFTA, the automotive industry had become "a pillar of the economic relationship" between Mexico and Michigan and added that his country is quite ready to modernize and strengthen the existing treaty for the future benefit of all parties.
Data from the U.S. Department of Transportation shows the value of NAFTA cross-border trade by truck, air, sea, pipeline and rail fell 3.4 percent last year to US$1.069 trillion.
The value of U.S.- Mexico freight fell 1.1 percent to US$525.1 billion as trucks carried 71 percent and rail 14.7 percent. Airfreight totaled 3.0 percent by value.