World Trade - March 2009 - (Page 31) own set of challenges that an experienced freight forwarder/customs broker can address. These include different Customs laws, practices and rules along the U.S.Mexican border. In other words, what works in Laredo might not in El Paso and other border crossings, Kuehner warns. Additional issues include pilferage, violence and criminal activities caused by organizations related to the drug trade rampant in Mexico, especially along the Southern U.S. border. Then there are issues related to Transportation Security Administration (TSA) requirements. “TSA is going to continue to present challenges in terms of meeting requirements and how they service customers coming out of Mexico,” says Detroit, MI-based Dale Page, senior director, automotive sector, for Pilot Air Freight. “This will dictate the service solutions that we can use for our customers.” In other words, if a customer is looking for timely service coming out of Mexico and are not a known shipper, forwarders have limited options for expediting that shipment. Border control officials between the United States and Mexico can also be an issue. “There are a lot of issues regarding transportation and how it’s managed,” Page says. “The key to our service success is we have knowledgeable people at the border who work closely with both U.S. and Mexican Customs. This makes for a seamless transition. You can never forecast what truck will get the red light and what inspections need to be done. These can cause delays.” But if the paperwork is right, and a knowledgeable freight forwarder is representing the shipper, even those challenges are doable. While some service provided by freight forwarders has been impacted by wide spread consolidation in the industry, others like Panalpina have been able to adjust and meet is customers’ growing and changing needs. “The trend at Juarez/El Paso market, for instance, shows that some of the larger ‘consolidated’ companies are not able to keep up with an ever-changing and complex customer demands,” Kuehner says. “While Panalpina remains a strong and solid player in the global market, we are able to offer flexible and prompt reaction time to our customers’ needs and expectations.” What appears to be the stronger driving force is client corporate logistics departments becoming more involved in managing cross-border logistics. “Most large U.S. companies had left the management of cross-border logistics up to each maquila,” Kuehner reports. But now with C-TPAT and other compliance drivers, factories are now becoming managed by their corporate offices. “This is having an impact on standardizing operating procedures as well as driving down cost with economies of scale,” he adds. “We see a bright future for Panalpina with this market due to our involvement with key industry verticals like auto, hi-tech and medical. “ Panalpina, a worldwide provider of logistics and forwarding services, has well-established cross-border business units in San Diego, CA; Phoenix, AZ; and El Paso and Laredo, TX. Recently, the company opened an office in McAllen, Texas, and Panalpina El Paso moved into a state-of-the art, 116,000 square-foot warehouse/distribution center for direct distribution to big consumer markets in less than 24 hours (e.g. California, Texas, Tennessee, Georgia, etc). “We have established trans-border standardized solutions that offer solid operations with cross-border expertise and U.S. brokerage teams, cross-dock service and cross-border trucking with pick and pack, and delivery schedules to ensure professional coverage of all customers’ needs are met at all times,” states Kuehner. “Furthermore, we are making on-going investments in leading edge IT tools and human capital to support U.S. Customs specifics such as NAFTA entries, Reconciliation and Duty Drawback.” James R. Tourtellotte/U.S. Customs and Border Protection Pilot Air Freight is equally concentrating efforts in Central America and Mexico. Fifty percent of the business Pilot does in the automotive sector is coming out of Mexico, despite diminished sales in the industry.. “We are finding there continues to be a need, although volumes are low,” Page reports. “Nevertheless, there continues to be a demand for seamless transportation from the interior of Mexico, where the auto industry is concentrated, to the United States.” Pilot offers door-to-door service with complete visibility and tracking from the minute a shipment is picked up in Mexico to when it is delivered to the end user in the United States—or vice versa. “The challenge in the past has been the ability to find reliable Mexican carriers that could meet the schedule requirements of customers,” Page says. “Today we have a lot of confidence that the carriers we use can get the job done from the interior of Mexico.” Again, the key is how freight forwarders manage shipments at the boarder. Here, Page again emphasizes how important it is to have knowledgeable people working on both sides of the border as well as good relations with both U.S. and Mexican Customs officials. WT Karen Thuermer, a Washington D.C.-based reporter, specializes in transportation topics. For reprints of this article, please contact Cindy Williams at williamsc@bnpmedia.com or 610-436-4220 ext. 8516. WWW.WORLDTRADEMAG.COM 31 http://WWW.WORLDTRADEMAG.COM
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