Yusen Logistics Mexico
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1 Yusen Logistics Mexico Jordan Dewart Vice President April 30, 2014
2 Agenda About Mexico Facts, Age and Auto-boom Intermodal Shipping: Rail is becoming a Great option Incoterms Shipping to Mexico Passport Service Trans-border Service Case Study Partnering with a Full Service 3PL / IMC Page 2
3 Mexico Facts President: Enrique Peña Nieto since 2012; to end in Population (2013): 119 million Unemployment (Apr 2014): 4.8% Debt to GDP ratio (Dec 2013): 42.8% 8 th Automobile Manufacturer (2013) projected to be top 5 by 2016 Expected to keep a +3.5% growthyear over year in GDP Free trade agreements with more than 50 countries and regions: Source: Mexican Ministry of Economy, 2012 Avg. 3.2% growth last 5 yrs Source: The World Bank, 2013 Source: The World Bank, 2014
4 Mexico s Auto-boom Light Vehicle Production Page 4 Source: Automotive Meetings, 2014
5 Intermodal Shipping
6 Rail Is Becoming A Great Option Rail service has improved significantly both on the US and Mexican Side. Cost effective solution Generally longer haul makes economic sense. New options to northwest corner of Mexico West Coast markets Avoids produce season in South Texas. Despite these advantages, rail still greatly lags behind trucking, WHY? Page 6
7 Incoterms a handy tool for shipping into Mexico Take advantage of Incoterms: Transfer of risks and costs to buyer or seller Unified obligations for contracting parties International validity Intermodal use of Incoterms: Seller Inland Export Customs Rail Shipment Import Inland Buyer Customs EXW FCA CPT CIP DAT DAP DDP Page 7
8 MX / US Border Shipping to Mexico Border Direct Service Takes advantage of US side rail savings & Mexico OTR Transit. Same customs clearance process as trucking. Easy to setup with existing supply chain partners. Rates are very competitive as they can include fuel surcharge and border crossing fees. Railroad Responsibility Northbound Door-Ramp Drayage Ramp-Door Drayage Origin Ramp Ramp Destination Destination Origin Ramp-Door Drayage Southbound Door-Ramp Drayage
9 MX / US Border Shipping to Mexico Mexico Direct Service Bypass the congested Laredo border crossing No delays at the border Smaller Customs fees / border dray charges eliminated Increased Security when entering and crossing into Mexico Some cargo liability maintained while in the railroad Greenest solution as total use of railroads Railroad Responsibility Northbound Door-Ramp Drayage Ramp-Door Drayage Origin Ramp Ramp Destination Destination Origin Ramp-Door Drayage Door-Ramp Drayage Southbound Page 9
10 Case Analysis : Flatbed to Intermodal Origin: Steel Manufacturing, Midwest Destination: Central, Mexico Commodity: Bundles of Steel Stacks Each bundle weighs 10,000 lbs. Service Type: Loads on an OTR platform Switches to an Intermodal container in Detroit via crane transload. Pulled to a terminal in Chicago and heads to Laredo, TX. Forwarded OTR to deliver in Puebla Shipper: Steel Manufacturing Flint, MI Yusen Transfer to Intermodal Detroit, MI Delivery to Consignee Puebla, MX Rail Terminal Chicago, IL Customs House Broker Laredo, TX Rail Destination Laredo, TX Page 10
11 Advantages of partnering with a Full Service 3PL/ IMC Take advantage of overall cost savings, regardless of incoterm. Superior capacity working with all rail companies. Innovative solutions to unique supply chain challenges. Physical presence throughout network (USA, Laredo, Mexico). Customer centric vs Asset centric. Competitive pricing through route optimization. Global network reaches beyond North America when needed. Page 11
12 Thank you!
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