UPS is expanding its services to cater to the needs of automotive and industrial customers with operations in both the US and Mexico. For the first time, the company will offer time-definite heavy freight air service between the two countries on its own aircraft. This new initiative aims to provide more tailored supply chain services to these customers.
The investment of nearly $50 million is a significant step towards enhancing the cross-border product within the UPS Ground system. This upgrade will enable customers to navigate the best logistics options, taking into account increased trade complexity associated with higher tariffs, changing regulations, and rising fuel prices. The new service options for one-day, two-day, three-day delivery are designed to help manufacturers move high-value, time-sensitive parts with greater speed and predictability.
Historically, UPS services between the US and Mexico have focused on small package shipments, with remaining capacity allocated for freight. However, the company is now offering a service upgrade in which shippers can receive day-definite, guaranteed service. This change reflects the growing demand for more customized logistics solutions as trade complexity increases.
The new UPS Ground with freight pricing functions as a less-than-truckload solution for multi-package shipments over 150 pounds, using the more simple parcel network. It is designed for multi-package shipments that do not require a pallet. The company has offered freight-pricing in UPS Ground within the domestic US market, but is now extending that to cross-border movements.
The automotive and industrial customers want an easy button for logistics,
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The move reflects the growing demand for more customized logistics solutions as trade complexity increases.
