May/2012
Mexicom Logistics Newsletter

Summer is upon us, which usually means a slight drop in exports and international transportation. This phenomenon is known in North America as the "summer low."

 

This situation is no cause for panic amongst the staff of Mexicom Logistics, Because we all know that with good management techniques, a well established sales strategy and some good old-fashioned elbow grease, we can stave off this dreaded summer low.

Mexican Truckers Avoiding Border

 

 

Last October, the governments of Mexico And the US, agreed to start a pilot program called Cross-border trucking program, which would allow Mexican carriers to go into the US using their own equipment. So far, the low participation is one of the reasons why the. program has been a slight disappointment

 

A U.S. Transportation Department official announced in a press conference, that only 33 Mexican trucks have crossed since the U.S. opened its southern border to long-haul trucks in October.

 

"Participation is not where we want it or need it to be to make it a viable program," said William Quade, the Federal Motor Carrier Safety Administration's associate administrator for enforcement and program delivery. "The agency is extremely concerned about not having sufficient data."

 

The U.S. must evaluate the pilot program to determine whether it would be safe to open the border to all truck traffic. So few Mexican trucks are participating that it may not be possible to have a statistically valid sample for the analysis, Quade said yesterday at a meeting of the agency's Motor Carrier Safety Advisory Committee in Alexandria, Virginia. 
 
The largest Mexican trucking firms aren't participating. Mexican operators cite insurance costs and uncertainty over whether the border will stay open as reasons for not wanting to participate.

 

If this program were to fail, it wouldnt be the first time. In 2007 the US government tried a similar program, which yielded very dissapointing participation rates as well.
 
 
Access Article                        Source: Bloomberg Businessweek
No heavy weights on Mexican roads. 

Despite the disagreement voiced by several transportation companies in Mexico, the Transportation and Communications Ministry (SCT) announced that, as of May the first, articulated freight trucks can no longer carry loads that exceed the maximum weight allowed by the ministry
.
This would mean that  the temporary measure adopted by the government, which allowed double articulated freight trucks to carry 10 000 extra  lbs, is now revoked. The permited weight for this type of rigs is now reverted to the original 147 000 lbs. 

According to the SCT, the purpose of this reversal is to better keep the life, the integrity and the health of the people that circulate on the roads. This trial measure may have had good economic results but the risk that it generated were considered too great by the ministry.
According to an unbiased analyst,  accidents involving double articulated trucks increased by 35% since the adoption of the temporary "heavy load"  measure. "It had become urgent to make concrete and thourough decisions to prevent more accidents from happening." Added the SCT.

                                                                    Source:   CNN Expansion
Polymers to replace traditional materials in the Mexican Automotive Industry  


I
t is not news that polymers have become a booming industry the world throughout. The many advantages this product offers have greatly helped many industries. For example, engineering polymers have the ability to improve performance, safety and offer eco-friendly solutions. For this and other reasons, they are becoming extremeley popular in the Mexican automotive industry.

From an automotive company's standpoint, polymers provide several advantages. For example, their light weight enhances motor performance, which in turn reduces gas consumption and environmental degradation, which increases the vehicle's resistance. Their cost efficiency, versatility and breadth of applications are helping them gradually edge out the competition from traditional materials such as metal and glass.  
In Mexico, manufacturing companies have placed the focus on processability, fire retardancy, strength and heat resistance. These advances are expected to boost the value of engineering polymers and make them the material of choice among automotive manufacturers.

 

Due to its proximity to the American market, the free trade agreement between both countries, and low labor costs, Mexico has become a favored investment destination within the automotive industry. This reason could cause several more automative companies to set up assembly plants in Mexico, which would greatly improve exports and, in turn, benefit the transportation industry. 

Despite the market's potential, the lack of technical preparation by the Mexican transformation sector limits the development of new engineering polymers applications. There is also the issue of the Asian competitors that offer simmilar products at low prices. This would mean that the Mexican transformation sector needs international-quality personnel to be able to compete at the highest level and this can only be achieved with substantial investments in training. With a more prepared and better trained workforce, the market will have a greater opportunity to succeed.

Access Article                                     Source: PR Newswire 
 

 

12000 freight trucks to be inspected in Mexico 

 
The Government of Mexico City announced that it will recall and inspect 12000 freight units over the next 3 months. The vehicles that will be inspected must have Mexico City or State of Mexico plates, and must be 2004 models or older. The reason for this government run inspection is to assure safe and quality freight service, to enforce enviromental laws and to avoid accidents with older units. 
 
Armando Quintero, Mexico City's transportation secretary, signed this bill, which does not allow older trucks to circulate if they do not submit to the inspection.

"Mexico City's government has started several short and long term measures to better the control we have over the heavy machinery that circulates in our city. The main goal is to maintain a safe road for all our citizens as well as to help keep a healthy and clean environment." says Quintero.

Freight truck owners who do not submit to the inspection will be subject to a fine that can go up to 10000 mexican pesos (800 usd) and have their vehicle impounded.
 
Access Article                                                        Source: Milenio
AAM expands business in Mexico

American Axle & Manufacturing Holdings, Inc., (AAM) announced the opening of a second location of AccuGear, Inc., located in the city of Silao, Guanajuato, Mexico. AccuGear, is dedicated to the production of metal formed products.

 

The new AccuGear location in Silao joins the Guanajuato Manufacturing Complex (GMC) as AAM's second manufacturing facility in Mexico. Under the leadership of Plant Manager Kevin Edmonds, the plant will manufacture precision differential gears and assemblies to support a variety of AAM customers and programs.


 The city of Silao offers a centralized location to support customers in both North America and South AmericaAAM is dedicated to profitably growing AccuGear's business by providing competitive, quality, advanced-technology product solutions for their truck and passenger car programs.

 

 

Access Article                                        Source: PR Newswire

  

 
Truck driver arrested after making wrong turn into Mexico
 
Jabin Bogan, a truck driver for a Phoenix's valley carrier, was driving a load of ammunition from Tennessee to Phoenix, with a stop in El Paso, when he took a wrong turn. Because, of the border traffic, the driver was forced to continue all the way into Mexico.
 
The employer of driver Jabin Bogan, said Bogan was legally transporting the ammunition to a facility in Phoenix, Arizona. 

Bogan's lawyer argues that a U.S. Customs agent advised the driver that he could take a U-turn once in Mexico. However, when he tried to come back, Mexican border agents searched the truck, which contained 27,000 rounds of ammunition. Mexico's firearms law stipulates that it is illegal to bring ammo into the country without prior permission. He was therefore arrested.
 
Bogan has been appealing his charges. But If he is convicted, he could spend five to 30 years in prison.
  
All of the ammunition that's now in Mexico was on its way to United Nations Ammo Co a Phoenix rifle and ammunition shop. The rounds that Bogan was transporting are mainly used for hunting rifles. This type of surplus ammunition is in such high demand, that local suppliers say there's almost impossible to replace it now.
Members of the cominity are pleading the case stating that it was a misunderstanding and demand their governmen to step in.
 
Access Article                                       Source : AZ family

 

Issue : 5
In This Issue
Mexican Truckers
Heavy weights
Polymer revolution
Truck inspection
AAM
Trucker arrested
Featured Article
FedEx looks to broaden its business after aquiring Multipack   
FedEx Corp. completed the acquisition of Mexico's Servicios Nacionales Mupa S.A de C.V., or MultiPack.
   
FedEx said the move strengthens its network in Mexico by allowing it to provide a wider range of transportation and logistics services. FedEx unveiled its intention to buy MultiPack, placing it under the control of FedEx Express, the corporation's air-express division.
 
As integration of MultiPack progresses, customers in Mexico will have direct access to all of FedEx's portfolio of domestic and international transportation and logistics services, the company said. 
 

Source

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At Mexicom Logistics we strive to be the BEST logistics and transportation option for our American and Canadian customers as well as our partners looking to do business in Mexico. Our versatile Mexican staff has extensive experience in the Mexican market, but what really gives us an edge is that we also know the inner workings of the North American transportation industry.


We look forward to hearing should you have any queries, please do not hesitate to contact us.

 

Aldo Medina 

Sales & Marketing Manager

Mexicom Logistics
795 1st Ave. Suite 319 Lachine
Montréal, Quebec, Canada

Mexicom Logistics