Report U.S. express carriers hindered by barriers, customs service
Countries without good customs processing and personnel are a major impediment to the international growth of U.S. express delivery companies because inefficient clearance impedes time-sensitive expedited goods more than other shipments, according to a report by the U.S. International Trade Commission.
Conversely, a good customs system may increase the likelihood that a particular good would be shipped by air to that market.
The report, which was commissioned last year by the House Ways and Means Committee to look at the competitive conditions facing U.S. firms in foreign markets, cites increasing competition with postal service monopolies as another impediment to capturing market share.
Global growth prospects for companies like FedEx Corp. and UPS hinge on reform to reduce postal monopoly influence on subsidiary businesses, the inclusion of express delivery-related provisions in trade agreements and adherence to customs guidelines issued by the World Customs Organization.