New services and terminals are coming online from DHL as the express carrier seeks to expand its operations between North America, Mexico, and Asia.
DHL said it is now offering a new "Break Bulk Express" (BBX) service to customers shipping multiple packages in one day from Mexico to the U.S. DHL achieves this by consolidating multiple express shipments into single large bundles to reduce customs clearances, delivery times, tracking and related costs.
BBX is part of DHL’s recently announced North America Trade Lane initiative, a five-year, $100-million investment in infrastructure and service in North America, focusing on U.S.-Mexico trade.
Lindsay Birley, DHL’s executive vp-international products and services, said that according to the U.S. Bureau of Transportation Statistics, the market for BBX-type services in North America is currently about $375 million a year, with air shipments representing approximately 30% of the total. Northbound shipments from Mexico include, automotive parts, high-tech products, consumer electronic goods, and agricultural goods such as flowers, fruits and vegetables.
Along with BBX service, DHL is opening two new gateway facilities: one in Merida, Mexico, to meet U.S.-Mexico cross-border shipment needs, plus a new international gateway in Southern California to handle greater freight volumes between the Western U.S. and the Asia-Pacific region.
The Merida facility will boost DHL’s handling capacity by more than 87% in the region, enabling the transport of more than 38,000 additional shipments per year, said Jesus Rosano, director of operations planning, DHL Mexico. This would allow the carrier to increase routes, freight capacity, and customs clearance services.
John Cameron, executive vp-operations for DHL, said the company invested over $3 million in its West Coast Distribution Facility in Riverside, CA. Most of the money was used to add on-site offices specifically for providing customs processing and clearance functions. It will function as DHL’s new International Gateway operation for Asia-Pacific trade.
DHL began operations at its West Coast Distribution Facility in 2005, after investing $70 million to convert the former Air Force Reserve base in Riverside into an international freight-handling terminal.