UPS Eyes Major Opportunity as Mexico’s Nearshoring Wave Grows

UPS is capitalizing on Mexico’s burgeoning role in global supply chains, presenting substantial opportunities for enhanced service efficiency and financial gains. Kate Gutmann, EVP and President of International, Healthcare, and Supply Chain Solutions at UPS, highlighted the company’s strategic advantage in managing shipments from Asia to Mexico destined for the U.S. This process includes handling inbound transportation, fulfillment, and linehaul operations. During an investor and analyst conference on March 26, Gutmann emphasized the potential for UPS to offer a comprehensive, integrated solution in a market that’s currently fragmented across various logistics stages.

As companies reallocate their manufacturing and distribution closer to the U.S. to harness tax and labor cost benefits, UPS is witnessing a shift in trade flows, particularly at the Mexico-U.S. border—one of the world’s rapidly expanding cross-border trade corridors. This strategic shift is already reflecting in UPS’s performance, with a notable increase in export volumes from the Americas, primarily driven by enhanced cross-border services. Conversely, a decline in shipments from Asia mirrors changing global trade dynamics. By engaging with shipments earlier in their journey, UPS not only stands to improve financial outcomes but also enhance operational efficiencies across its network.

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Union Pacific Connects Chicago to Southern California with New Direct Rail Service

Union Pacific has introduced a new direct rail service linking Southern California with metro Chicago, aiming to attract more over-the-road shipments and ease traffic congestion. Launched in April, this route enhances connectivity from the Lance Fritz Inland Empire Intermodal Terminal in Fontana, California, to Northlake, Illinois, complementing another existing route to Joliet, Illinois. This service promises transit times of four to six days, offering a swift and efficient alternative for shippers.

This strategic expansion not only offers shippers lower drayage costs near both urban hubs but also aligns with Union Pacific’s broader objectives to enhance network efficiency and encourage the shift of freight to intermodal solutions. The initiative is part of a series of strategic enhancements including new on-dock services at Port Houston and the cross-

border Falcon Premium service, strengthening Union Pacific’s commitment to providing versatile and congestion-reducing options for its customers.

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Parcel Carrier Service, Better Trucks, Expands its Reach with 1,100 Additional ZIP Codes

Better Trucks, a growing parcel carrier, has significantly expanded its delivery network by adding 1,100 new ZIP codes across the U.S., enhancing service in the Midwest, Southeast, New York, and Texas. This expansion, effective immediately, aims to fill gaps in existing service areas and meet the evolving demands of shippers, as explained by co-founder and CEO Andy Whiting.

The carrier strategically chose new areas that complement its current markets, like those between Indianapolis and South Bend, Indiana, to ensure effective service coverage. This growth is part of Better Trucks’ ongoing effort to offer robust alternatives to traditional carriers like FedEx and UPS, especially after the surge in demand during the COVID-19 pandemic. Looking forward, Better Trucks plans to continue its careful expansion to meet the high expectations of today’s shipping landscape.

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