Cross-border automotive freight consolidation to mitigate US tariffs

The logistics firm is combining freight consolidation in Mexico, cross-border transport, customs brokerage and bonded warehousing with AI-optimised delivery across the US and Canada. The new service was designed to overcome inherent inefficiencies in cross-border supply chains, where trucks crossing from Mexico into the US are often under-utilised. To comply with Mexico law, all freight on a trucks must be cleared by the same customs broker, which inhibits consolidation of less-than-truckload (LTL) freight from different suppliers or OEMs.

Now, LTL freight can be consolidated at a secure facility in Mexico and moved cost-effectively across the border, giving earlier inbound visibility and saving costs through optimised routes and lower tariffs.

“Say you’re a company that assembles vehicle seats in the US, and you’re importing foam, fabric, a wiring harness, a motor and switches from five different suppliers in Mexico. Those are coming to the border on five different trucks, five different transfer carriers are taking the loads across, and only then your freight might be consolidated for delivery to your warehouses or plants,” said Jay Cornmesser, vice-president for Mexico cross-border services at CH Robinson. “You’re unnecessarily paying for too many trucks and unnecessarily paying for unused space on each truck.”

Ben Bidwell, senior director for customs at CH Robinson added that the consolidation can provide some relief from US tariffs. “We can move freight in bond, meaning it can enter the US through a bonded warehouse to defer US tariffs for better cash flow or even eliminate tariffs in the freight is passing through to Canada,” Bidwell said. “Because auto parts and components are one of the top items flowing across the Mexico border, this is particularly attractive for automotive supply chains subject to the 50% tariffs on items containing aluminium or steel.”

The trend of consolidating cross-border shipments is growing as geopolitical tensions rise. Other logistics providers and suppliers are turning to similar strategies to ease the impact of tariffs and border frictions. Kuehne+Nagel, for example, has opened a new cross-border facility in Laredo, Texas to consolidate loads and centralise customs brokerage for automotive clients, while Eaton has partnered with Uber Freight to streamline and pool customs processes for shipments from Mexico into the US. Tier-1 suppliers are also making use of consolidation hubs in border towns such as Laredo, as well as in the US Midwest, to combine multiple LTL shipments into full truckloads, reducing both cost and tariff exposure.