NAFTA supply chain poised for growth

“Thanks to NAFTA and the lowering of taxes and duties on many commodities, trade has dramatically increased between the United States and Canada with billions of dollars in goods and services crossing the border on a daily basis,” said John Costanzo, president, Purolator International.
By Patrick Burnson, Executive Editor
October 18, 2011 - SCMR Editorial

Near-sourcing and the North American Free Trade Agreement represent a perfect supply chain match, industry analysts contend.

“Thanks to NAFTA and the lowering of taxes and duties on many commodities, trade has dramatically increased between the United States and Canada with billions of dollars in goods and services crossing the border on a daily basis,” said John Costanzo, president, Purolator International.

He noted that the company is currently in an “aggressive” 2011 expansion, has 10 new U.S. branch locations planned before the end of the year, giving it a presence in 18 of the top 20 U.S. markets for trade with Canada. 

“Its customers in aviation, technology, energy, and consumer goods work closely with Purolator for its expertise in cross border trade, extensive Canadian distribution network and ability to handle complexities in a global market,” he said in recent address.

Speaking at last month’s Supply Chain Council’s Executive Summit, Costanzo shared his perspectives on sustaining a competitive edge in a global market environment, including the trends in global trade and logistics services from a Canada / North America and world perspective.  He also addressed the opportunities NAFTA has created for Canada, the US’s largest trading partner and top trading partner for many global economies.

Costanzo’s speech, “Insights in Leveraging NAFTA for Greater Global Supply Chain Capability,” reinforced many of the observations made in a recent study.

After surveying import and export compliance managers from 200 firms, Customs & Trade Solutions Inc and Management Dynamics have compiled key statistics into our latest benchmark study, “Best Practices for Managing NAFTA and Free Trade Agreement Programs.

The benchmark study suggested best practices for implementing and optimizing NAFTA while divulging key statistics, such as:

• 86 percent of all firms used a manual process to manage their NAFTA data
• Only 34.3 percent of all companies were confident of the information they shared with Customs and their Customers through the NAFTA certificate
• 32 percent of respondents have had their customs group audited in the last 3 years

 



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Carloads headed down 2.5 percent annually to 286,660, and intermodal containers and trailers remained on a growth path, up 2.3 percent to 270,952.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA