FedEx expands trans-border ops

Aug. 28, 2007
FedEx Corp. is expanding its FedEx Transborder Distribution service to handle more cross-border trade between Mexico and the U.S.

FedEx Corp. is expanding its FedEx Transborder Distribution service to handle more cross-border trade between Mexico and the U.S.

The company is beefing up its portfolio of services designed to simplify cross-border trade for importers and exporters and adding two new border facilities – one in Ciudad Juárez, Mexico, the other in El Paso, TX – to help facilitate the flow of goods.

“With this expanded cross-border solution, we’re looking to simplify the supply chain process by managing the transportation, brokerage and distribution of shipments that cross the Mexico-U.S. border on a regular basis,” said Ed Clark, president & CEO of FedEx Trade Networks. “The vision is to create a single point of contact to facilitate the efficiency of the entire process.”

He said this expanded solution will also help FedEx work hand-in-hand with maquilas and companies using maquilas (or other duty-deferral programs) as part of their supply chain, so they can benefit from a simplified shipping and customs clearance process managed entirely by FedEx – using specific procedures to remain in compliance with customs regulations in the U.S. and Mexico.

Clark said some of the advantages to the expanded trans-border trade network include: moving cargo directly from point of origin to maquilas in Mexico, and from the maquilas to distribution centers or end users in the U.S. based on a company’s factory production needs; providing online shipment visibility so customers can efficiently manage their supply chain operations; consolidated invoicing or split billing options; and offering comprehensive brokerage solutions.

In addition to the Mexico-U.S. border-crossing services provided through FedEx Transborder Distribution, Clark said FedEx could also handle cargo movement from Asia or Europe into the U.S., across the border into Mexico to maquilas, and back to the U.S. for final distribution. He noted a cargo shipment from a maquila or other duty-deferral programs in Mexico can arrive in the U.S. in as little as one to five days, depending on the origin and final destination.

“We want to make trade easier for our customers in Mexico and the U.S. so that both countries can capitalize on the benefits of the North American Free Trade Agreement (NAFTA),” said Juan Cento, president for FedEx Express, Latin America and Caribbean Division.

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