FedEx seeks Cuba service extension

The parcel and express carrier has requested a second air cargo service extension from the U.S. Department of Transportation, citing “continued operational challenges in the Cuban market.”    FedEx has requested an additional extension from the U.S. Department of Transportation (DOT) to inaugurate U.S.– Cuba all cargo air service five days a week between Miami and Varadero (VRA), FedEx said in a statement to American Shipper.
   The parcel giant was awarded cargo service between Miami and Matanzas/Varadero (VRA) in Cuba last year, to commence by April 15, 2017. FedEx said it needed an initial extension to October 15, 2017 to allow for more time to address “business challenges and regulatory complexities” in Cuba. The DOT approved the initiation extension, after FedEx sent a letter to the DOT regarding unanimous approval in a poll to extend the start-up date for service to Cuba.
   However, FedEx “is seeking further extension of its service to June 15, 2018 is needed in order to address continued operational challenges in the Cuban market,” the company said.
   According to the parcel and express carrier, “substantial hurdles persist” to launching its Cuba service. “Namely, these hurdles relate to securing the appropriate Cuban commercial partners in VRA for critical operational components such as: airport ground-related services; unfettered access to airport customs clearance facilities and warehousing/staging space as needed; and last-mile delivery capabilities,” the company said.
   FedEx maintains that “an efficient and reliable U.S.-Cuba air express/cargo service” would “maximize the public benefit of the U.S.-Cuba Memorandum of Understanding for the U.S. shipping public and economy alike.”
   Furthermore, the company said that the DOT’s granting of the extension request would “be consistent with department precedent.”
   On Feb. 16, 2016, the United States and Cuba signed a Memorandum of Understanding (MOU) that allows for the resumption of scheduled air services between the United States and Cuba. Under that MOU, U.S. carrier may operate up to twenty daily rout-trip frequencies.