UPS-owned Coyote Logistics bets on U.S.-Mexico trade

Wall or no wall, UPS-owned Coyote Logistics is betting its new office in metropolitan Guadalajara that NAFTA trade isn’t going away anytime soon. The new Guadalajara office allows the logistics provider to further develop its intra-Mexico business and “execute a broader, more complex array of services to existing and new customers both in Mexico and North America,” said Coyote President Jonathan Sisler.

UPS bought Coyote Logistics in August 2015, and the acquisition boosted revenues in UPS’ Supply Chain and Freight divisions in 4Q2016.

The Guadalajara office will offer truckload, less-than-truckload, intermodal brokerage and transportation management services to shippers.

UPS noted that cross-border freight still lacks visibility and suffers from inadequate communication from third-party partners. Coyote’s in-house technology (part of what made it such an attractive acquisition to UPS) raises the bar in that regard.

Coyote offers customer and carrier mobile apps that provide near-real-time visibility of shipments, especially at the border, “where many delays can occur,” the company said. Further, analytics and configurable key performance indicator reporting allow shippers to pinpoint bottlenecks and take appropriate actions.

On the macro-level, the U.S. and Mexico remain active trade partners, with daily trade volumes reaching US$1.4 billion in commercial trade. Mexico’s domestic economy continues to expand, with middle-class demand growth outpacing its northern neighbor. To dismissing this market, economists say, would be economic suicide.

Coyote’s dense carrier network suggests that it is taking no chances. “This is a significant opportunity for Coyote within the Mexican market,” said Coyote Guadalajara senior manager, Cesar Valdez. “We have already made significant progress developing relationships with shippers and carriers in Mexico. We are increasing our capabilities more than ever before, creating greater awareness of our services – and we are just getting started.”

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