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FedEx and UPS to battle each other over Mexico's growing air cargo traffic

RIVAL express companies FedEx and UPS both have their minds set on grasping a larger chunk of Mexico's air freight pie, while others in the industry grapple with the confusion surrounding the capital's supposed three-pronged airport system

17 February 2020 - 19:00

RIVAL express companies FedEx and UPS both have their minds set on grasping a larger chunk of Mexico's air freight pie, while others in the industry grapple with the confusion surrounding the capital's supposed three-pronged airport system.

UPS just this month opened up a new air route between Louisville and Mexico, hot on the heels of the ratification of the new free trade agreement between the US, Mexico and Canada, reports London's Loadstar.



The integrator now operates five nights a week between its main hub and Queretaro with an Airbus 300 freighter, bringing the tally of UPS flights into Mexico to nine a night, Monday to Friday.



'The new air route will help drive growth and export opportunities for businesses of all sizes in the state of Queretaro,' said UPS Mexico marketing director Michael Cuesta.



'As a national frontrunner in the automotive, aerospace and manufacturing sectors, this region has experienced strong economic growth. And UPS is investing here to further support the economic development and connect our customers.'



In January, FedEx strengthened its presence in the Mexican market with a US$24.6 million investment in Toluca airport, one of three designated airports serving Mexico City, adding 17,000 square metres to its controlled zone to double its capacity.



Both integrators have Mexico's small and mid-sized companies in their sights, particularly those in the e-commerce sector looking to sell to US consumers and other international markets. To attract this audience in the region, UPS is offering preferential rates, with discounts of up to 50 per cent to new customers and a 20 per cent discount on shipments in Queretaro.



And, according to one report, FedEx is also offering discounts to SME shippers in the Toluca area.



Queretaro is turning into a shooting star on the Mexican airport scene. In the first half of last year, it was the fastest growing among the nation's larger cargo gateways, with an 11.6 per cent increase in throughput. This was in stark contrast with the Mexican air freight market overall, which contracted 1.7 per cent during the period.


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