Dive Brief:
- C.H. 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 on Nov. 12.
- The move positions the company to better serve the border-adjacent state of Chihuahua, Mexico’s top exporting region, which saw its export value surge 35.7% year over year to $47.6 billion in Q2, per the release.
- “We continue to see El Paso emerge as a vital gateway for not just high-tech freight, but also automotive, medical devices, and healthcare products,” Jay Cornmesser, VP for Mexico cross-border services at C.H. Robinson, said in the release. “Our expansion in El Paso is a direct response to the evolving needs of our customers in today’s dynamic trade landscape.”
Dive Insight:
C.H. Robinson’s expansion gives the company more than 2 million square feet of logistics space along the U.S.-Mexico border providing it with agility and scalability. It follows the company’s recent launch announced in September of an LTL consolidation service that reduces inefficiencies in cross-border supply chains.
As nearshoring and global trade uncertainty persists, Mexico continues to draw a range of businesses, C.H. Robinson said. This has led to opportunities to aid companies in navigating the country’s “unique logistics environment.”
Of the top 10 manufacturers in the world, Mexico had the second-largest percent increase of manufacturing activity in Q2, according to a United Nations Industrial Development Organization report. Only China’s growth rate was higher.
Mexico has benefited from the United States-Mexico-Canada Agreement, which has shielded the country from the brunt of tariffs issued by the Trump administration.
C.H. Robinson said the uptick came with high-tech products leading Mexico’s export categories. Chihuahua has emerged as a hub for computer and communication equipment manufacturing among other products, according to the company.
Other companies, including carrier Werner Enterprises and Ryder System, also see opportunity in cross-border shipments.
Werner operates terminals in El Paso and Laredo, Texas, which offers expedited cross-border freight handling. Ryder manages nearly 21,000 cross-border freight movements monthly between the U.S. and Mexico.
“On the industrial side, if a customer needs anything, whether it’s cross-border activity, we have a big presence in Mexico,” John Diez, president and COO of Ryder System, said during the Stephens annual investment conference on Nov. 19.
At C.H. Robinson, Cornmesser said the brokerage is supporting a fast-growing Europe-based food and beverage company, which sought a service to handle customs, warehousing and multi-modal transportation.
“They needed an error-proof program that mitigated any potential for missteps that would cost time and money,” he said. “By leveraging our integrated logistics capabilities, companies can streamline their supply chains and stay compliant as they adapt to new shipping, storage, and trade regulations.”
