US XPress Nixes US-Mexican Border Business

US XPress Nixes US-Mexican Border Business

February 9, 2019

U.S. Xpress is reducing its U.S.-Mexico cross-border investment. The move will improve consolidated operating margins.  According to the company, relationships with its former partners in Mexico will continue to enable cross-border service for customers “as a variable cost alternative”.

U.S. Xpress started the exit from its fixed cost investment in the cross-border business by selling off its Mexican entity to existing managers.

In the coming months of 2019, U.S. Xpress will close its trucking terminal in Laredo, Texas, and dispose of 700 dry van trailers. It will use network optimization to reposition 300 domestic tractors, which currently carry loads to and from the border, into more profitable routes.

This post is based on the SupplyChain247 article, U.S. Xpress announces exit move out of U.S.-Mexico cross-border business, by Jeff Berman, January 25, 2019. Image source: Dave Moyer.

Discussion Questions:

1. What are the driving forces behind the U.S. Xpress decision to exit its U.S.-Mexico cross-border business?

Guidance: The company has stated that the decision is to improve its consolidated operating margin by divesting low-return U.S.-Mexico operations. That will improve the company’s core U.S. operations, and provide higher cash flows and profits.

2. How does U.S. Xpress plan Continue reading

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Angola’s New Last Mile Delivery App

Angola’s New Last Mile Delivery App

January 26, 2019

One large pig to go? No problem.  For $124, an African start-up called Tupuca will deliver it to your doorstep.

Prefer a medium sized chicken?  That will be $5, please.

With Tupuca’s app, customers in Luanda, Angola can order a diverse array of products, including coal, fuel, produce, and even live animals like chickens, pigs, or goats.  At present, an average size order is around $40, and Tupuca’s 140 drivers make about 17,000 deliveries each month.

This post is based on the APICS article, Last-mile delivery apps grow African economies one goat at a time, by Abe Eshkenazi, December 14, 2018. Image source: Shutterstock / Syda Productions.

Discussion Questions:

1. How does Tupuca’s app fit in with the economic and socio-cultural environment in Angola?

Guidance: By partnering with Roque Online, which sends a buyer to the market to buy top quality produce or livestock, Tupuca offers a unique service to its African clients.  Africa boasts 21 of the world’s 30 fastest-growing cities. Newly emerging middle class consumers have money to spend and smartphones on which to order food and other products.

2. How does Tupuca’s app add value for African consumers and the African Continue reading

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