Dive Brief:

• The U.S.-Mexico Air Transport Agreement entered into effect Sunday, allowing passenger and cargo airlines in both countries to access any airport in the other country.
• The agreement was signed in December, but diplomatic notes were not exchanged until July 22. The two countries last updated the agreement in 2005.
• The agreement, however, is not an open skies agreement — foreign airlines cannot begin and end a cargo trip within the same country. 

Dive Insight:

The expansion of the agreement to allow international cargo travel between any port may significantly reduce logistics operators' last-mile costs — a major concern for the ecommerce, pharmaceutical and food industries, among others.

Now, even approved charter fleets or private cargo airlines may deliver their goods to the clients' most convenient location, rather than a selection of pre-authorized ports. And as distribution centers are built in increasingly diverse locations, third party logistics providers and retailers with privately-owned air fleets stand to benefit greatly from the agreement.  

Mexico's Ministry of Communications and Transport added in a press release the updated agreement allows air cargo carriers to access the full of U.S.-Mexico trade, which amounts to $500 billion each year. The ministry claims the agreement will permit airlines greater travel flexibility, facilitate global trade and foster the growth of air-heavy industries like e-commerce.