18 part 1: Advancements in e-Commerce Shipping to Mexico

Michael DiVincenzo: 00:00:00

On top of saving a lot of dollars from having those two legs of trucking, we can have them send one truck directly to Laredo, and that can typically cut out, say, one to three days in transit.

Voiceover: 00:00:11

This is Outside the Box with Ascendia usa, a podcast educating US Based brands, marketplaces and e tailers on international shipping topics and how they can expand their global e commerce footprint.

Nick Agnetti: 00:00:25

Hey, everybody.

Nick Agnetti: 00:00:26

Welcome back to another episode of Outside the Box with AsendiUSA podcast. I am with my CO, Jason Rowland.

Jason Rowland: 00:00:33

Hey, everybody. Welcome back.

Nick Agnetti: 00:00:35

We have very special guests again. Joining us again today, we've got Leslie foxhoven and Michael DiVincenzo. You guys want to say hi real quick? Hi.

Leslie Foxhoven: 00:00:43

Good to see you again.

Michael DiVincenzo: 00:00:45

Hey guys. Thanks for having us back.

Nick Agnetti: 00:00:47

It's good to have you guys back. And we're here to talk again about all things Mexico.

So the last episode that we had you guys on dropped back in March, and it was really to talk more about, you know, why we launched the product and the service and.

And what we're doing to really make Mexico deliveries better and to make it a market that is a little bit easier to access for the brands and retailers that are listening. And we're kind of coming back today to talk a little bit about, you know, what's changed. Some advancements and, you know, some geopolitical stuff.

Nick Agnetti: 00:01:21

And.

Nick Agnetti: 00:01:21

I don't know. Jason, did I miss anything?

Jason Rowland: 00:01:23

No, that sounds great. I know there's a lot of. A lot of good stuff to get into. A lot of updates for the. The facility and the product.

And Mexico is always a great, crazy kind of changing environment. So we'll get into some updates, and I think it'll be a great, great episode.

Nick Agnetti: 00:01:37

Yeah. It still shocks me the number of users that we saw in terms of just online shoppers in Mexico as a country. Right. I mean, it's just.

I see it as it's going to continue to be a growing market, so I think it's a great place to be and to continue to expand into the, you know, the Latin American market. So. All right, well, let's just. Let's just get right into it then. Mike, can you tell us what.

So since we last talked, you know, we've got our own facility in Laredo, Texas. Right. Can you give us an update on the facility? Maybe what's changed?

What, you know, what's grown, what we're doing different, Just everything, really.

Michael DiVincenzo: 00:02:13

d the service in September of: 2024

And as we started bringing on more clients One thing we noticed is that it was a little difficult for some clients, especially in, say, the Texas or southern U.S. region, to take their parcels that are going down south of Mexico and bring them up to one of our facilities, say in Chicago, New York, Philadelphia or Los Angeles. So what we decided to do was we launched a processing facility in Laredo, Texas. It's about five miles from the actual U.S. mexico border.

back in May of this year, so: 2025

It's fully operational, just like any of our other facilities, except it's specific to our direct to Mexico product. So as of right now, we're not processing parcels for the other countries we're sending to, but this is particular for Mexico.

So we receive parcels in that facility, we can process them, and then we could give our customers the ability to clear their parcels into Mexico via a T1 or A1 clearance.

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Jason Rowland: 00:04:34

Yeah, that's great.

Nick Agnetti: 00:04:35

Oh, go ahead, Jason.

Jason Rowland: 00:04:36

Yeah, well, just on, on the trucking, the way that we do it now, how much that must save the customers a lot of money because all that in, you know, line haul truck across the country and, and get it either into one of our facilities or down into Laredo. Having it there so close to the border must save, I would imagine, what amounts to hundreds of dollars per shipment. Right.

So all those trucking costs that end up getting kind of eaten up with vendors and brokers and, you know, different truckers from around the country, all those different lt. So it must be saving our customers a pretty good amount of money to have it so close to the border.

Michael DiVincenzo: 00:05:13

Yeah, that's a great point.

And it actually works twofold because it not only saves the customers a ton of money, but it also saves them a lot of days in transit because previously we would have to bring the parcels to one of our facilities around the US and then from there we would tender them down to the border at this facility anyway.

So on top of saving a lot of dollars from having those two legs of trucking, we can have them send one truck directly to Laredo and that can typically cut out say one to three days in transits.

Nick Agnetti: 00:05:44

Spence. Yeah, it's big time.

So I was fortunate enough to bring a client on that is going directly to Laredo and the amount of time it saves from going from Ord to Laredo or into Mexico versus going directly to Laredo in New Mexico is huge. The transit times are phenomenal, which I know we'll get into too.

But Mike, going back though, so just because obviously, you know, the purpose of our podcast is very educational. Right. So we want to educate listeners in the cross border logistics space.

You had mentioned a couple clearance opportunities that, that we have by having our facility in laredo. You mentioned T1 and then another one. Can you expand on that just a little bit?

Michael DiVincenzo: 00:06:27

Yeah, absolutely.

Michael DiVincenzo: 00:06:28

And I think we'll, we'll definitely get into it to an extent a little bit later. But there are two predominant clearance methods when customers want to send E Commerce shipments or any shipments in that matter to Mexico.

So a T1 is a simplified clearance method which is, or in other words informal. And then an A1 is a formal clearance which you see a lot for business to business commodities, things like that.

But we use for about 95% of the parcels we send down to Mexico. Right now we use a T1 clearance, which is the easiest and cheapest way to do the clearance into Mexico for business to consumer.

Nick Agnetti: 00:07:19

Okay, got it. And sorry to steal any thunder for later in the show. I guess I just didn't really put all that together, but I understand. So. Okay.

So Jason, you had some questions I think on the customs broker or something?

Jason Rowland: 00:07:33

Yeah. So thank you for listening. Tune in again next week when we continue this discussion.

Voiceover: 00:07:38

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