Kuehne + Nagel consolidates parts warehousing in El Paso

The new cross-dock will be situated in El Paso and will open in August this year, with Kuehne + Nagel committing to an initial seven-year period of operations having made “significant investment” on building improvements.

Kuehne + Nagel said the facility will support the increase in goods movements to the north and south over the border. There has been a significant increase in container shipments from Mexico to the US this year and import container bookings from China to Mexico went up 24% last year.

John Levin, regional vice-president for the central area for Kuehne + Nagel US, confirmed that the crossdock will support the distribution of automotive raw material shipments from the US to Mexico, and finished goods for assembly plants and top tier suppliers in the other direction. While not sharing the actual percentage of automotive material to be handled at the operation, Levin described it as “fairly sizeable”.

“Currently Kuehne + Nagel El Paso will allow us to process 33% more trailers daily,” he told Automotive Logistics. “The storage capacity on site is over 25,000 racked pallet locations and 100,000 sq ft [9,290 sq.m] of floor crossdock and storage space.” 

Efficient design 
The warehouse will feature 54 dock doors, front and rear crossdock capability, 125 truck yard spaces, as well as added vertical racked storage locations. The logistics provider said the additional dock availability would help reduce the amount of time a truck is received and offloaded, and the building’s improved layout will make cargo flow more efficient. It will also feature enhanced security and modern offices, according to the company.

Levin said the new, larger facility will increase its warehouse footprint, improve building efficiencies, and complement its freight forwarding services, with final import and export services into or out of Mexico.

Kuehne + Nagel said the new facility will support customers as they seek to redesign their supply chain processes by providing effective alternatives for cross-border shipments. 

“The facility offers crossdock space, long-term storage inside the foreign trade zone and bonded warehouse, as well as domestic distribution services,” added Levin.

He also said the El Paso crossdock is strategically located 10km from the El Paso port of entry between the US and Mexico. The warehouse is C-TPAT certified, providing security for customers’ supply chains. It is also a container freight station enabling shippers to consolidate cargo with other Kuehne + Nagel loads and deconsolidate for a cost effective and prompt delivery. [Continues below]

Increased cross-border shipments 
There has been an increase in cross-border shipments from Mexico to the US, according to global supply chain market intelligence provider Freight Waves. Some of that comes as a result of increased container shipments from China to Mexico.

“What we’re seeing is a surge in inbound imports between China and Mexico,” said Freight Waves Sonar market expert, Ryan Grote during a market update at Freight Waves’ Future of Supply Chain event in Atlanta, US this month. The Freight Waves Sonar Inbound Ocean TEU Volume Index shows that import container bookings from China to the US are up 36% over a five-year period and up 11% year-on-year. However, bookings from China to Mexico are up 127% over the past five years and 24% over the past year. “Because of that, the progression to get those goods into the United States is to ship those goods cross-border from Mexico to the US…[.]” Grote continued. “We’re really seeing a boom in Laredo, Texas, as a lot of that freight passes through the border and into the US. From a supply chain shipper perspective it’s something to consider as the supply chain starts to shift.”

*In April this year Kuehne + Nagel took over management of a 170,000 sq.m spare parts fulfilment and delivery centre for BMW in Wallersdorf, Germany. The logistics provider is responsible for the physical receipt of goods, pre-packaging, the management of packaging material and empties, as well as the loading of goods onto shuttles for dispatch to all BMW parts distribution locations.