UPS expands into Nicaragua, Honduras

Global logistics provider UPS expanded its UPS Express Freight service into Nicaragua and Honduras, two emerging economies that count the US as their No. 1 trading partner.


Honduras UPS expands into Nicaragua


Global logistics provider UPS expanded its UPS Express Freight service into Nicaragua and Honduras, two emerging economies that count the US as their No. 1 trading partner. “Trade between these two countries and the US has grown at a remarkable rate in recent years,” said Scott Aubuchon, director of International Air Freight, UPS. “US imports from Nicaragua have been growing at a rate of 21 per cent per yearon- year the last two decades—10 times faster than the latest IMF GDP growth forecast of the US economy for 2012. “The growth we began to see after the 2006 Dominican Republic-Central America-US Free Trade Agreement (CAFTA-DR) is now accelerating with the recent trends in near-sourcing,” Aubuchon added. A rising presence in the automotive industry, Honduras is the third largest exporter of automobile wiring harnesses to the US. The country’s recent diversification of exports over the past decade from primarily agricultural goods to industrial goods has made the US and Germany two of its largest export trading partners, with 65 per cent of those exports bound for the US. Approximately 51 per cent of Honduran imports are from the US, followed by Guatemala and Mexico. Approximately 58 per cent of Nicaragua export commodities are shipped to the US, including seafood, apparel and precious metals such as gold. Among the Latin American countries involved in CAFTA-DR, Nicaragua has become the fastest growing exporter to the US, while Nicaragua’s largest import partners include the US, Venezuela, Costa Rica and China.