FedEx and UPS dominate international air cargo in Mexico

FedEx and United Parcel Service (UPS) dominated international airfreight service carried by international airlines in scheduled service in Mexico during 2022.

In particular, FedEx carried 73,100 tons, up from the 72,800 tons it moved a year earlier.

UPS recorded a load of 42,900 tons, which implied an increase over the 41,400 tons in 2021.

Other companies that operated this service include Abx, Atlas Air, Amerijet International and American Airlines.

The Civil Aviation Law of 1995, the Airports Law of 1995 and their respective Regulations regulate air transportation in Mexico, and have not been substantially modified since 2017.

International air service is regulated by air services agreements.

However, in the absence of an agreement, the service is provided according to the principle of reciprocity.

Air carriers may provide ground handling services themselves or contract them with another company, which may be another airline. A permit from the Federal Civil Aviation Agency (FAA) is required to provide these services.

Within the United States, FedEx’s competitors include other package delivery companies, primarily UPS, passenger airlines offering express package services, regional delivery companies, air carriers, and USPS.

FedEx

FedEx Express’ principal international competitors are DHL, UPS, DPD (a GeoPost subsidiary of La Poste de France), General Logistics Systems (a package delivery group owned by Royal Mail), foreign postal authorities, passenger airlines, air carriers, regional carriers and cargo-only airlines.

The company also competes with startups that combine technology with crowdsourcing to focus on local market needs.

In addition, some high-volume parcel carriers, such as Amazon.com, are developing and implementing in-house delivery capabilities and using independent contractors for deliveries, and may be considered competitors.

For example, Amazon.com has established a network of hubs, aircraft and vehicles and has expressed its intention to offer its in-house delivery capabilities generally to third parties.

Many of FedEx Express’ international competitors are government-owned, controlled or subsidized transportation companies, which may have greater resources, lower costs, less sensitivity to profit and more favorable operating conditions than FedEx Express.