C.H. Robinson Launches Cross-Border Freight Consolidation

Saving shippers as much as 40%, it’s a brand new solution to transfer freight from Mexico extra effectively and offset the impression of upper tariffs

C.H. Robinson, which manages 37 million shipments a yr as the worldwide chief in AI-driven provide chains, has launched a brand new service that may save cross-border shippers as much as 40% and offers them visibility to their freight as much as 48 hours earlier. It uniquely combines freight consolidation in Mexico, cross-border transport, customs brokerage and bonded warehousing with the biggest community of carriers and AI-optimized supply throughout the United States and Canada.

The new service was designed to beat inherent inefficiencies in cross-border provide chains. Trucks crossing from Mexico into the United States are sometimes under-utilized and generally carry only a single pallet. That’s as a result of Mexico legislation requires all freight on a truck to be cleared by the identical customs dealer – inhibiting consolidation of less-than-truckload (LTL) freight from completely different suppliers or producers, even when it’s headed to the identical vacation spot.

“Here’s a situation we see on a regular basis,” stated Jay Cornmesser, VP for Mexico cross-border providers. “Say you’re an organization that assembles car seats within the United States, and also you’re importing foam, material, a wiring harness, a motor and switches from 5 completely different suppliers in Mexico. Those are coming to the border on 5 completely different vehicles, 5 completely different switch carriers are taking the masses throughout, and solely then your freight may be consolidated for supply to your warehouses or vegetation. You’re unnecessarily paying for too many vehicles and unnecessarily paying for unused area on every truck.”

Now, LTL freight might be consolidated at a safe facility in Mexico and transfer cost-effectively on a single truck to the border and on a single truck throughout, seamlessly overseen by C.H. Robinson’s customs group. Using synthetic intelligence, C.H. Robinson’s proprietary Optimizer expertise then determines one of the best ways to mix and route the freight to its ultimate locations. Key advantages of the streamlined service embody:

• Earlier inbound visibility: “An organization’s freight from central Mexico’s industrial hubs takes a day or two to get to the border and one other eight to 24 hours to cross, as a result of lengthy ready strains and frequent disruptions. When their varied suppliers ship to them utilizing completely different carriers, customs brokers and tech, they hardly ever have upstream visibility,” stated Cornmesser. “Our new service brings freight to our new consolidation middle in Mexico identical day for same-day visibility. This helps guarantee the graceful circulation of supplies to a just-in-time producer and is particularly helpful once they want freight expedited. With as much as 48 hours additional visibility, we are able to pull freight from completely different areas nearer to the receiver, expedite freight that’s additional alongside in transit or on the very least receive a extra aggressive charge for an expedite from our consolidation middle.”
• Significant price financial savings: While the price of getting freight to the border is decreased, price financial savings with the brand new service additionally come past the border with optimized deconsolidation, consolidation and supply. With steady real-time knowledge inputs, C.H. Robinson’s Optimizer is ready to dynamically select the correct mode, proper route, proper provider and proper day to maneuver the freight. Trucks, journey time and miles are minimized. Trailer utilization is maximized.
• Tariff mitigation: “At a time when provide chains are strained by new and better tariffs, our new cross-border consolidation service can present some reduction,” stated Ben Bidwell, senior director for customs. “We can transfer freight in bond, which means it might probably enter the United States via a bonded warehouse to defer U.S. tariffs for higher money circulation and even remove tariffs if the freight is passing via to Canada. Because auto elements and parts are one of many prime objects flowing throughout the Mexico border, that is notably engaging for automotive provide chains topic to the 50% tariffs on objects containing aluminum or metal.”

As heavy customers of consolidation, retailers that import meals and drinks from Mexico would additionally profit from the brand new cross-border service, as would healthcare corporations that depend on medical gear made in Mexico or any industrial producer that depends on elements, parts or electronics made in Mexico.

“With so many industries beneath intense financial stress proper now, that is precisely the time to have a look at your provide chain holistically and get the advantages of those interconnected options,” stated Michael Castagnetto, president of North American Surface Transportation. “With C.H. Robinson’s 35 years of expertise in Mexico and the 1.5 million shipments we handle on this area a yr, this new cross-border consolidation service is a pure extension of our experience in LTL, our AI innovation and our fixed quest to optimize our clients’ provide chains.”

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