UPS Team Tackles Complex Cross-Border Logistics

UPS has operated in Mexico for 25 years. Photo: UPS

Every day, some $1.4 billion is exchanged in commercial trade between the U.S. and Mexico, according to UPS. In fact, the U.S. is Mexico's largest trading partner, and Mexico is the United States second-largest export market (after Canada) and its third-largest trading partner.

Growth in manufacturing and the middle class in Mexico, increases in e-commerce shipments, and the rise in intermodal cross-border shipments between the U.S. and Mexico drove UPS's renewed focus on the trade lane.

In 2014, UPS established a center of excellence for U.S.-Mexico trade. A team of experts evaluated and improved offerings, focusing on shippers' needs. Then early last year, UPS announced it had strengthened those cross-border services.

“UPS has seen nearly a 20% increase in customer requests for U.S.-Mexico cross-border movements,” says Carlos Cubias, vice president of the UPS center of excellence. “We reengineered and aligned our capabilities for more flexibility, reliability, visibility and simplicity. Shippers now have the same service options – express, expedited or standard – for all shipments regardless of size. In addition, UPS is the only carrier with delivery guarantees for LTL and package shipments when we are the customs broker.”

Automotive, manufacturing, aerospace and high-tech are the priority industries UPS serves out of Mexico. U.S.-to-Mexico trade includes the same industries, and growth of the Mexican middle class means in the future more volume will go from the U.S. to Mexico from the healthcare and retail industries.

Familiar with that automotive freight is Darryl Barber, automotive segment marketing manager for UPS. He points out that the automotive industry has been expanding beyond the typical Detroit and rust belt states, both to southern states such as Alabama and Kentucky, as well as across the southern border to Mexico.

“You'll see the same parts kind of crisscrossing the border multiple ...Read the rest of this story

See Much?: We need better headlamps, period.

Heavy Duty Trucking Named Finalist for Two Journalism Awards

Heavy Duty Trucking magazine is happy to announce that it has been named a finalist in two categories for the 63rd Jesse H. Neal Awards, which honors excellence in business journalism.

The four-part series on The Modern Maintenance Manager was named a finalist for Best Series. The series examined what the trucking industry's most forward-looking maintenance and equipment executives are doing to hire and keep technicians, manage employees, increase efficiency and productivity as well as to meet other demands placed on the modern maintenance manager.

The series consisted of feature articles by editor in chief Deborah Lockridge, executive editor David Cullen and technology contributing editor Jim Beach.

HDT was also named a finalist in the Best News Coverage category for its coverage of the EPA's GHG Phase 2 Rule. Through news, articles, and analysis, HDT's editors examined many aspects of the rule as proposed and as issued in its final form last summer. The coverage included contributions by editor in chief Deborah Lockridge, executive editor David Cullen, senior contributing editor Tom Berg and senior editor Jack Roberts.

Finalists for this year's Neal Awards include 128 nominations covering a range of categories, including best content, blogs, social media and best use of data, infographics and art direction. A total of 42 winners will be announced, culminating in the Grand Neal Award, which honors the most outstanding entry from among the winners in all categories.

A panel of 14 judges will review the finalists to select winners in the 17 editorial categories. Winners will be announced during a special awards ceremony on March 31 at Pier Sixty in New York City.

The Neal Awards were created by the American Business Media association (now named Connectiv) in 1955 to recognize and reward editorial excellence in business-to-business publications that cover such fields as agriculture, ...Read the rest of this story

ATA supporting NACV trade show

UPS Tests Drone Launched From Atop Package Car

Photo: UPS

UPS announced that it has successfully tested a drone that launches from atop one of its package cars. The system is designed to autonomously deliver a package while the truck is driven on a route.

The drone can autonomously deliver a package to a home and return to the truck while a delivery driver continues along the route to make a separate delivery.

The test was conducted in Tampa, Fla., with Ohio-based Workhorse Group, a battery-electric truck and drone developer. Workhorse built the drone and the electric UPS delivery truck used in the test.

“This test is different than anything we've done with drones so far,” said Mark Wallace, UPS senior vice president of global engineering and sustainability. “It has implications for future deliveries, especially in rural locations where our package cars often have to travel miles to make a single delivery.”

Rural delivery routes are the most expensive to serve for UPS due to the time and vehicle expenses required to complete each delivery. A reduction of just one mile per driver per day could save UPS up to $50 million in a single year, according to the company.

If implemented, the drone can aid drivers at various points along a route to help save time and reduce costs. The drone docks on the roof of the delivery truck. A UPS driver can load a package into a cage suspended beneath the drone through a hatch built into the truck. The driver can then direct the drone along a preset autonomous route to the address.

The done in the test was a Workhorse HorseFly UAV Delivery system model. It has a 30-minute flight time and can carry a package weighing up to 10 pounds. The drone recharges in between flights while it is docked.

“Imagine a triangular delivery route where the stops are miles apart ...Read the rest of this story

Spot Truckload Freight Rates Level Off Following Gains, Declines

Spot truckload freight rates appear to have stabilized after flatbeds trended slightly higher the past few weeks while vans and reefers moved downward, according to new figures from the freight matching service provider DAT Solutions.

This also happened as overall freight volume also steadied for the week ending Feb. 18, as the number of available loads increased 4% and truck capacity fell 1.2% compared to the previous week.

The national average flatbed rate was unchanged at $1.96 per mile, but still 5 cents higher than three weeks earlier. Both vans and reefers each declined 1 cent from the week before, coming in at a national average of $1.62 per mile and $1.88 per mile, respectively. Compared to three weeks earlier vans are down 7 cents per mile and reefers lost 9 cents.

All reported rates include fuel surcharges. The average price of on-highway diesel edged up a penny to $2.57 per gallon last week.

With little change in rates, load-to-truck ratios were up, but only a little for each trailer type last week:

The number of van load posts increased 3% last week while van posts dipped 1%. While the national average van rate fell, 46 of the top 100 van lanes had higher rates last week compared to 41 that paid less. Thirteen lanes were neutral. Average outbound rates in major markets were mixed:

Several van lanes fell due to an influx of reefer capacity, according to DAT, as low demand in the reefer market had ...Read the rest of this story

International Truck Receives NJPA Contract

Photo: International Truck

International Truck has been awarded a contract by the National Joint Powers Alliance that will offer new International Class 6, 7, and 8 chassis to more than 50,000 NJPA members in the U.S. and Canada.

NJPA is a public agency that establishes alliances between buyers and suppliers for use by education, government, and non-profit entities. Through NJPA, members have access to pre-negotiated pricing and terms that streamline the purchasing process to save on costs and time.

NJPA members will be able to use the program to shop for Class 6, 7, and 8 trucks at International Dealer locations in the U.S. The International Truck contract (081716-NVS) with NJPA is in effect until Nov. 15, 2020.

“Through this program, municipalities and government agencies in search of solutions to meet their business needs can order International trucks without having to spend time and money to go through a bid process,” said Jeff Sass, senior vice president, sales and marketing, Navistar.

“This joint enterprise with NJPA represents an exceptional opportunity for these customers to purchase our lineup of severe- and medium-duty trucks, including International's flagship HX Series and the reliable and versatile WorkStar and DuraStar models," he added,

Related: Quick Spin: International LT625

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