C.H. Robinson has introduced a new cross-border service aimed at improving efficiency and reducing costs for shippers moving freight between Mexico, the United States, and Canada. The company manages more than 37 million shipments annually and says the new model addresses inefficiencies common in cross-border logistics.
Under current practices, trucks crossing from Mexico into the U.S. are often underutilized because Mexican law requires all freight on a truck to be cleared by the same customs broker. This limits the ability to consolidate less-than-truckload (LTL) shipments from different suppliers headed to the same destination.
© C.H. Robinson
According to Jay Cornmesser, Vice President for Mexico cross-border services, this results in multiple trucks transporting individual shipments from different suppliers to the border, creating higher costs and underused truck capacity.
The new service consolidates LTL freight at a secure facility in Mexico before transporting it across the border on a single truck. The freight is managed by C.H. Robinson's customs team and routed using its Optimizer technology, which applies artificial intelligence to determine mode, route, carrier, and delivery schedules.
The company states that one of the main benefits is earlier inbound visibility. Freight can be moved to the consolidation center the same day, giving shippers up to 48 hours of additional insight into their shipments. This is intended to help manufacturers dependent on just-in-time delivery better anticipate supply chain disruptions. The service is also expected to provide cost savings by consolidating freight earlier and optimizing deconsolidation after border crossing, reducing overall transport costs through higher truck utilization and fewer miles traveled. In addition, it can support tariff management by moving freight in bond through U.S. bonded warehouses, which may defer or eliminate tariffs if goods are destined for Canada. This is especially relevant for industries such as automotive, where components are subject to higher tariffs on aluminum and steel content.
The service is expected to be used by industries reliant on Mexican imports, including automotive, food and beverage, healthcare equipment, and industrial components.
For more information:
C.H. Robinson
Tel: +1 952 683 2800
Email: [email protected]
www.chrobinson.com