Service Supply Chain Flexibility Taking Flight to New Heights

U.S. companies that move goods into, out of or through Mexico are about to experience a much greater level of service supply chain flexibility, thanks to a new agreement that will permit an unlimited number of cargo flights between the countries. That will equate to faster service and better rates, which in turn will help service supply chain professionals control costs and accelerate revenues.

Experts predict that the new deal, which takes effect in less than a month (on Aug. 21), will significantly increase trade and travel between the U.S. and Mexico.service supply chain transportation

Once the agreement is active, cargo carriers can schedule and operate routes between Mexico and a third country without a connection to the United States, which, Harvey said,  will enable all-cargo carriers to “provide the fastest services and at the best rates for businesses and shippers.”

Greater Freedoms for Service Supply Chain Transportation

While this agreement provides the same “unlimited” status to passenger flights, it’s the all-cargo carriers and global service supply chain solutions providers who will reap the greater rewards of the deal.  No longer restricted, all-cargo flights can be scheduled from any destination to any destination among both countries—or even to a third country.

“This agreement provides new rights that will allow our cargo carriers to expand their worldwide networks to better integrate services with Mexico, Caitlin Harvey, a representative of the U.S. Department of Transportation, told Air Cargo World. “Our carriers will now have traffic rights to start an operation outside of the United States, fly to the United States, fly to Mexico, and then continue to another country.”

Benefits beyond Service Supply Chain, Too

The benefits of this aviation agreement between the U.S. and Mexico extend beyond fostering the growth of business and trade between the two countries. This agreement will also:

  • Benefit airports and businesses in both countries.
  • Create jobs in both countries.
  • Pave the way for airlines from the U.S., Mexico and other countries to provide services to intermediate locations.

Airlines are already beginning to jockey for position to leverage the benefits of this deal that will allow an unlimited number of passenger and cargo flights between the U.S. and Mexico. Delta Airlines is closing in on acquiring up to 49 percent of Aeroméxico, an initiative first announced in November 2015.

Flash helps Companies Succeed in Mexico

This aviation agreement between the U.S. and Mexico will further strengthen Flash Global’s position as a leading provider of holistic service supply chain solutions in Mexico. We already have the expertise and infrastructure in place to help customers succeed in Mexico and throughout Latin America. Once such success story: Flash helped Juniper Networks set up 45 depots in Mexico in less than 30 days. Now, due to fewer flight restrictions, doing business in Mexico will be easier than ever.

Contact us now to learn more about how we can tailor a custom service supply chain solution that will help you maximize efficiencies, control costs and accelerate revenues.