JP Morgan Chase Vastera, the global supply chain and trade logistics unit of JP Morgan Chase, has launched its new Border Logistics Management solution, a comprehensive outsourced customs warehousing service designed to bring greater visibility and efficiency to companies moving goods between the US and Mexico.

Border Logistics Management helps companies save time, improve working capital, and take greater control of their supply chain by reducing inventory levels, decreasing order-to-deliver time, improving the monitoring of carrier activities, and improving regulatory and security measures.

JP Morgan Chase Vastera’s solution combines a number of key supply chain, logistics and trade compliance components into a single outsourced offering, including US and Mexico customs clearance, customs warehouse oversight and management, customs broker oversight and management, trade document preparation, trade flow and process visibility.

“The complexities of crossing the US-Mexico border continue to burden shippers. Our offering delivers a more streamlined, secure approach to those businesses with regular trade volume between the two countries,” says Bernie Hart, global product executive, JP Morgan Chase Vastera. “In addition, the launch of the service marks another significant step into the logistics and supply chain arena for JP Morgan Chase as the company remains the first and only financial institution to offer such solutions.”

Some of the benefits of Border Logistics Management include:

  • Reduced disruptions due to expert management of the cross-border flow of goods between Mexico and the US from in-gate to drayage and, in some cases, to final destination – provided by JP Morgan Chase Vastera’s trade professionals.
  • Simplified oversight of logistics processes as a result of centralising best-in-class service providers all under one roof – each provider selected, contracted and managed by JP Morgan Chase Vastera to meet each client’s unique needs.
  • Increased visibility throughout the cross-border process due to exchange of standardised data and information between providers, enabling shorter lead times and lower inventory levels.
  • Elimination and minimisation of customs warehouse and brokerage service provider selection, negotiation and management challenges.
  • Reduced transaction costs as a result of JP Morgan Chase Vastera’s buying power combined with its process and procedure simplification.
  • Streamlined cross border trade operations that simplify navigating complex US and Mexico Customs regulations to ensure duty minimisation.

Border Logistics Management is being offered to support cross-border shipments into and out of El Paso and Laredo, Texas. The solution will expand throughout the year to additional sites along the US-Mexico border.

According to the Bureau of Transportation Statistics, Mexico, next to Canada, has been the second largest trading partner of the US for the past five years. The value of trade between the US and Mexico grew 8.9% in 2005 to US$290bn.