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UPS rolls out Trade Direct service in Japan
POSTED: 1:36 p.m. EDT, January 16,2007

UPS announced yesterday that it has rolled out UPS Trade Direct Services into Japan. The company said this move will help improve intra-Asia transportation processes and expand trading options within Japan.

UPS launched Trade Direct in 2002, and it is now available in 50 origin countries in North America, Europe and Asia. Trade Direct is a door-to-door service that combines air and ocean transportation with brokerage and final delivery. This type of service provides a single bill and full visibility from manufacturer to final delivery, which, UPS said, provides ease-of-use and cost and time savings through a single customs clearance, as well as bypassing traditional distribution centers.

A UPS spokesperson told Logistics Management that Trade Direct gives shippers faster moving inventory, which, in turn, speeds cash flow and receivables and reduces inventory carriage costs. And a singular consolidated bill for freight and package delivery services can reduce administrative costs and streamline bill reconciliation.

The spokesperson said that while when Trade Direct was first made available in 2002 as a cross-border capability in the Americas, its primary need was for shippers importing into the United States. She cited an ¡°explosive need¡± today for getting products into Asia-particularly ocean movements to Japan from all over the world and significant growth in intra-Asia particularly between China and Japan-as the drivers for rolling out Trade Direct in Japan.

One of the biggest improvements shippers in Japan may see with Trade Direct, according to the spokesperson, is a reduction in transit times.

¡°There are several factors that come into play when determining transit times, such as mode of transportation and point of origin,¡± said the spokesperson. ¡°We anticipate that the improvements in getting things to market will be comparable to what we are seeing in other areas [using Trade Direct]-reductions of anywhere from six up to 20 days.¡±

From: Logistics Management
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