New services and terminals are coming online from DHL as the express carrier seeks to expand its operations among North America, Mexico, and Asia.
DHL said it is now offering a new “Break Bulk Express” (BBX) service to customers shipping multiple packages in one day from Mexico to the United States. DHL achieves this by consolidating multiple express shipments into single large bundles to reduce customs clearances, delivery times, tracking, and related costs.
BBX is part of DHL's recently announced North America Trade Lane initiative, a five-year, $100 million investment in infrastructure and service in North America, focusing on US-Mexico trade.
Lindsay Birley, DHL's executive vice-president-international products and services, said according to the US Bureau of Transportation Statistics, the market for BBX-type services in North America is about $375 million a year, with air shipments representing approximately 30% of the total. Northbound shipments from Mexico include, automotive parts, high-tech products, consumer electronic goods, and agricultural goods such as flowers, fruits, and vegetables.
Along with BBX service, DHL is opening two new gateway facilities: one in Merida, Mexico, to meet US-Mexico cross-border shipment needs; plus a new international gateway in Southern California to handle greater freight volumes between the western United States and the Asia-Pacific region.
The Merida facility will boost DHL's handling capacity by more than 87% in the region, enabling the transport of more than 38,000 additional shipments per year, said Jesus Rosano, director of operations planning, DHL Mexico. This would allow the carrier to increase routes, freight capacity, and customs clearance services.
John Cameron, executive vice-president-operations for DHL, said the company invested more than $3 million in its West Coast Distribution Facility in Riverside CA. Most of the money was used to add onsite offices specifically for providing customs processing and clearance functions. It will function as DHL's new International Gateway operation for Asia-Pacific trade.
DHL began operations at its West Coast Distribution Facility in 2005, after investing $70 million to convert the former Air Force Reserve base in Riverside into an international freight handling terminal.