Air+Road Solution Could Be Answer To China-To-Mexico Shipping Challenge

Air+Road Solution Could Be Answer To China-To-Mexico Shipping Challenge

Mexico has become a popular manufacturing hub for North American companies looking to shrink their supply chains. But this near-sourcing trend creates real challenges.

Many component parts used during the assembly process in Mexico are made by Chinese suppliers, and there is very limited direct air freight service from China to Mexico.

The greatest need for a China-to-Mexico freight solution is among manufacturers of electronics, automotive and aerospace products that require rapid replenishment of inbound components. Therefore, ocean shipping is not an option. These companies want the speed of air freight, but currently Cathay Pacific is the only carrier offering direct freighter service from China to Mexico.

One creative alternative is a multimodal, Air+Road solution via the US.  Dimerco is one of the global forwarders that can offer direct freighter service from China into US cities near the Mexico border and then combine that with bonded trucking service to transport cargo directly to the international airport in Mexico closest to the consignee.

Cargo never enters US Customs territory, so duty payments are deferred until final customs clearance in Mexico. With this solution, door-to-door transit time is about 6–8 days – just 2 to 3 days longer than direct airport-to-airport service. And the savings over direct air service can be substantial – as much as 40% percent

Here’s how it works.

1. Cargo is transported using regular consolidated flights from China to the US.

2. A bonded truck transports goods to any Mexico airport, duty free across the border.

3. Customs inspection and clearance happen at the airport closest to the consignee. Cargo is treated by Customs as an airport-to-airport shipment.

4. Last-mile delivery is arranged by the forwarder as part of the total solution.

The popularity of the service is growing among Dimerco customers, who are happy to trade the few extra days of transit time for added savings and reliable air freight capacity. You’ll need an experienced global forwarder to help with the details of this solution. Success requires the following.

Existing capacity. The forwarder should have block space agreements with key Asia-based air carriers and be able to guarantee the space.

Experienced operations teams. Careful coordination of details at origin and destination is critical. You’ll want to work with a forwarder that operates offices in both China and the US destination points. 

Rapid processing of required paperwork. You’ll need a forwarder well-versed in customs procedures. Once cargo arrives, they must file an “immediate exportation” entry with US Customs that allows cargo to move in-bond into Mexico without passing through Customs.

Clearance at the destination airport. The in-bond trucking service allows cargo to avoid clearance at the Mexican border. Border clearance can add days to the trip.

Safe transit. In-bond trucking from the US direct to the airport in Mexico should be a non-stop, highway-only trip by a two-driver team. This avoids security concerns for high-value cargo.

Users of global air freight services are typically looking for the fastest transit time available. While this China-to-Mexico, trans-shipment solution increases transit time by a few days, it is a practical response to the near absence of direct air freight shipping from China to Mexico.

The best step to determine if this option could work for your business is to test it with several shipments – with Dimerco or another forwarder offering the service.

Weekly Brief

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