June 23, 20 - 12:12 pm - LABS

E-commerce is saving logistics companies in Mexico

E-commerce is saving logistics and courier companies in Mexico, according to Milenio. Faced with the collapse of more than 90% in the air traffic of passengers due to the coronavirus pandemic, courier companies have managed to mitigate the blow to their cargo demand thanks to e-commerce. The newspaper ponders that logistics had less pronounced falls than other sectors.

The increase in orders for toys, books, and health items has enabled companies like FedEx, UPS, and MasAir to continue to operate.

In the first four months of this year, UPS moved 10.9 tons of goods by air, a volume of cargo 8.8% smaller than in the same period last year, but which allowed the company to maintain its operations and its chain of customers and suppliers. Currently, the company has almost 700 access points and physical stores in Mexico, as well as partnerships with pharmacies and convenience stores for the delivery of packages.

In an interview with Milenio, the Marketing Director of UPS Mexico, Michael Cuesta, said that “UPS services today are more important than ever because of everything that is happening; people are locked up at home, stores are closed, and there is a need for quality health products. People want items like toys, books, and sporting goods”, he said.

The same happened to FedEx, which transported 16.07 tons from January to April in Mexico, a drop of 17.3% compared to the same period of 2019. “We saw a trigger for orders of things that are very important for families such as medicines, masks, gloves, and hand sanitizer,” the president of FedEx Express in Mexico, Jorge Torres, told Milenio.

Cargo being loaded onto a passenger airplane
Cargo being loaded onto a passenger airplane. Photo: Jaromir Chalabala/Shutterstock

For him, the entry into force of the Trade Agreement between Mexico, the United States, and Canada (T-MEC) on July 1 can contribute to a faster economic recovery, Torres stated. “There is no better time than the entry into force of the T-MEC because we just believe that it will be a vehicle through which, with full coordination with the three levels of government, we can capitalize. Take advantage of that vehicle to be able to go towards this recovery, “he said.

On the future of the courier and parcel sector, Cuesta said that nobody knows exactly what is going to happen, although the only certainty is that e-commerce will continue to rise.