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SAN JOSE -- Flextronics will expand its EMS operations in Mexico through the development of a new facility in Ciudad Juarez. The plant is scheduled to be operational in the first half of 2006.

"Flextronics selected Ciudad Juarez based on its strategic access to North American markets," said chief operating officer Mike McNamara. "The supply base in this area is well established, allowing for logistical cost savings and increased efficiencies."

The facility will perform product build-to-order, product completion and pack-out, mechanical services and logistics such as repair and distribution.

Mike McNamara, Flextronics' chief operating officer. "Ciudad Juarez's proximity to the United States offers flexible logistics options including next-day delivery advantages, shorter transit times and lower transportations costs.

Other Flextronics operations in Mexico are in Guadalajara and Aguascalientes.

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NEW YORK -- Asia’s peak shipping season kicked off with pilot strikes, rate increases and reports of tight space conditions in some areas, particularly in regions that route cargo through transit hubs.

A strike by Polar Air Cargo pilots is expected to last through the peak season and cut freighter capacity out of Shanghai, Hong Kong, Japan and Korea, said Trans Global Logistics USA, a major freight forwarder. Japan Airlines and Asiana immediately imposed rate increases after the strike was announced Sept. 16. The full impact of the strike is expected to hit toward the end of the month, TGL said.

Carriers are also hiking fuel surcharges by as much as 67 cents per kilogram.

Furthermore, there is typically a surge in air freight prior to the Chinese National Holiday celebration, which runs from Oct. 1-7. Shanghai and Hong Kong are among the areas expected to feel the brunt of peak season traffic, particularly due to high volumes of electronics goods. TGL advised allowing an extra one or two days of transit time for freight routing through Asian transit hubs because of congestion.

ST. PETERSBURG, FL -- Jabil Circuit Inc. yesterday reported net earnings rose 59% on a 25% jump in sales for its fiscal fourth quarter. Jabil, a top-tier electronics manufacturing services provider, said net income was $70.5 million, in the August quarter, and revenue was $2.04 billion.

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