Northbound Consolidation: A Smarter Approach to Cross-Border Logistics

Existing challenges

Cross-border logistics play a critical role in the automotive supply chain, connecting manufacturers and suppliers across the globe. However, inefficiencies in freight movement, particularly for shipments traveling northbound from Mexico into the United States, have long presented challenges.

Many less than full truckload shipments move with significant empty space, leading to increased costs and underutilized capacity. Additionally, complex customs processes, bridge crossing fees, and fluctuating truckload availability create further obstacles for shippers.

To address these challenges, consolidation programs have emerged as a strategic solution. By combining freight from multiple shippers, consolidation improves truck utilization, lowers transportation costs, and simplifies the customs process. This guide explores the benefits of a structured program, and how consolidated freight movement can enhance efficiency, reduce emissions, and provide greater supply chain stability.

Shipping from Mexico to the United States: Existing challenges

From underutilized truck space to complex customs processes and challenges procuring reliable warehouse space in automotive centric markets in Mexico, shippers must navigate a range of obstacles to maintain a smooth and cost-effective supply chain. Here are some of the key challenges that impact northbound and southbound freight operations.

• Northbound efficiency: Many partial truckload shipments from Mexico to the United States operate inefficiently, with underutilized truck space increasing costs. This inefficiency also leads to more trucks on the road, raising the risk of theft or other disruptions.
• Southbound support: While southbound shipments have existing solutions, ensuring balance and efficiency in both directions remain a challenge.
• High shipping costs: Paying for unused truckload capacity inflates transportation expenses.
• Complex cross-border logistics: Legal and customs requirements, infrastructure constraints, and increasing demand due to nearshoring cause delays and inefficiencies. 
• Frequent, high-volume shipping demands: Tight transit times and just-in-time supply chains increase pressure and risks on supply chain logistics operations. 
• Expensive bridge crossing fees: Separate LTL entries incur high entry costs that quickly add up.
• Constrained truckload capacity: Market volatility further complicates planning and cost control.
• Sustainability concerns: Inefficient logistics contribute to higher carbon emissions.
• Cargo safety: With cargo theft on the rise, security for cross-border shipments is a concern. 

Without a dedicated consolidation strategy, shippers often pay for full truckload capacity regardless of shipment size, leading to unnecessary expenses and operational bottlenecks.

Northbound consolidation from C.H. Robinson

With focus on consolidating U.S. bound freight in the interior of Mexico, this end-to-end logistics solution from C.H. Robinson integrates warehousing, surface transportation, customs brokerage, and border crossing services, leveraging our scale and experience operating supply chains in Mexico, and complementing global freight forwarding capabilities.

Key program benefits

• Optimized truckloads: Maximized freight capacity reduces empty space.
• Cost savings: Customers pay only for the space used, lowering expenses. 
• Visibility: Faster validation of shipped quantities and PO lines fulfilled.
• Improved dock efficiency: Streamlined loading/unloading processes enhance supply chain flow.
• Consistent delivery schedule: Reliable transit times support just-in-time inventory management.
• Lower carbon emissions: Fewer truckloads mean reduced environmental impact.
• Simplified customs and cross-border handling: A seamless experience for entries of multiple suppliers.

How northbound consolidation works

1. Local freight pickup: C.H. Robinson collects freight from supplier locations across Mexico.
2. Consolidation at warehouses: Freight from multiple suppliers is combined at key automotive hubs in Mexico (Monterrey & Queretaro), serving surrounding states.
3. Full truckload optimization: Northbound shipments are cross-docked and consolidated into full truckloads for efficient transportation and border crossings.
4. Border crossing and customs handling: C.H. Robinson works with 3rd party Mexico customs brokers for smooth border transit. Freight moves to a cross-dock warehouse at port of entry. When bonded entries are required CH Robinson has shipper specific programs designed to accommodate.
5. Deconsolidation and final delivery: Shipments are distributed to final destinations via the global C.H. Robinson logistics network.

Get the most from your northbound consolidation program

Consolidating freight in Mexico can reduce up to 35% of total transportation cost while reducing emissions by 21%. With over 2 million cross-border shipments in North America every year, C.H. Robinson has the scale, density, and expertise to ease the flow of goods across your automotive supply chain.

With 35 years of presence and logistics expertise in Mexico, we are uniquely positioned to offer this northbound consolidation solution. Our dedicated capacity allows us to be insulated from volatility in the market and pass on these benefits through cost savings. Creating a northbound consolidation program could be the next step in your automotive supply chain optimization journey—driving efficiency, reducing costs, and supporting your sustainability goals across North America.

Get started

Connect with a C.H. Robinson automotive expert to see how a northbound consolidation program can optimize your supply chain strategy—at the border and beyond.