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Summary of diving:
- CH Robinson Worldwide added more than 450,000 square feet of warehousing and cross-docking space in El Paso, Texas to bolster its cross-border operations, the brokerage announced Nov. 12.
- The company’s move is to better serve the neighboring border state of Chihuahua, Mexico’s biggest exporting region, which increased the value of its exports 35.7 percent year over year to $47.6 billion in the second quarter, per the release.
- “We continue to see El Paso emerge as a critical gateway not only for high-tech transportation, but also automotive, medical device and healthcare products,” Jay Cornmesser, vice president of Mexican cross-border services at CH Robinson, said in the statement. “Our expansion in El Paso is a direct response to the growing needs of our customers in today’s dynamic business landscape.”
Diving Insights:
CH Robinson’s expansion gives the company more than 2 million square feet of logistics space along the US-Mexico border, providing it with agility and scalability. This follows the company’s recent launch in September of an LTL consolidation service that reduces inefficiencies in cross-border supply chains.
As global trade uncertainty continues, Mexico continues to attract a wide range of jobs, said CH Robinson. This has led to opportunities to help companies navigate the country’s “unique logistics environment.”
According to the report of the United Nations Industrial Development Organization, Mexico had the second highest percentage increase in manufacturing activity in the second quarter of the world’s top 10 producers. Only China’s growth rate was higher.
Mexico has benefited from a US-Mexico-Canada agreement that shielded the country from most of the tariffs issued by the Trump administration.
CH Robinson said the increase occurred with high-tech products leading Mexico’s export categories. According to the company, Chihuahua has emerged as a center for the production of computer and communication equipment among other products.
Other companies, including carrier Werner Enterprises and Ryder System, also see opportunities in cross-border shipments.
Werner operates terminals in El Paso and Laredo, Texas that provide express cross-border freight. Ryder handles nearly 21,000 cross-border freight movements between the United States and Mexico per month.
“On the industrial side, if a customer needs something, whether it’s cross-border operations, we have a big presence in Mexico,” Ryder System president and CEO John Dies said at Stephens’ annual investment conference Nov. 19.
At CH Robinson, Cornmesser said the brokerage supports a fast-growing food and beverage company based in Europe, which is looking for services to handle customs, warehousing and multimodal transportation.
“They needed an error-proof program that would reduce any potential for time-consuming and costly missteps,” he said. Using our integrated logistics capabilities, companies can streamline their supply chain and stay compliant with new shipping, warehousing and trade regulations.
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