Tech-Driven Solution for Simplifying Cross-Border Logistics

Q: What problems does Cargado aim to address in the cross-border logistics landscape? 

A: Cargado aims to simplify the complexities of cross-border freight movement. Logistics companies, including freight brokers, 3PLs, and freight forwarders, play essential roles in ensuring that freight is transported efficiently from one location to another. We provide a platform that connects these logistics companies with a network of trucking companies. Our solution streamlines communication and helps both parties expand their cross-border networks. By creating a structured online marketplace, we enhance the overall logistics experience, making it easier for businesses to manage cross-border shipments and improve operational efficiency. Our goal is to facilitate smoother and more effective freight transportation.

Q: How does Cargado’s technology simplify the complexities of cross-border freight logistics?

A: Cargado’s technology transforms complex, nuanced communication into structured data. Unlike domestic shipments, which primarily focus on pickup and delivery details, cross-border logistics involves numerous additional requirements. We have developed a platform that consolidates this information, allowing logistics companies to input and share all necessary data in one place. This eliminates the need for repetitive communication via email or WhatsApp, streamlining the process and enabling better collaboration among all parties involved. Our goal is to enhance visibility and efficiency throughout the entire logistics operation, ultimately making cross-border shipping smoother and more effective.

Q: Cargado operates as an invite-only load board. Why did you choose this model and how does it set Cargado apart from traditional load boards in the logistics industry?

A: We chose an invite-only model for Cargado to create a curated and trustworthy environment for our users. With 17 years of experience in freight logistics, including both domestic and cross-border freight, we recognized the importance of building relationships with reliable carriers. This model allows us to connect our customers with a select network of trusted carriers, enhancing the quality of service and collaboration.

Unlike traditional load boards, which can resemble a chaotic marketplace, our platform prioritizes  trust and safety. Cargado aims to create an experience similar to Airbnb, emphasizing structure and comprehensive information. This ensures that our users have access to a well-organized marketplace where they can collaborate with reputable carriers rather than navigating a disorganized space filled with uncertainty. By prioritizing quality connections and a structured interface, we set ourselves apart from conventional load boards, making it easier for our customers to find and work with the carriers they prefer.

Q: How does Cargado ensure that its platform remains secure and trustworthy?

A: Cargado ensures security and trustworthiness through its invite-only model, which minimizes the risk of fraud and double brokering. Each broker undergoes a thorough onboarding process, including a video call and demo, allowing us to establish personal connections and assess their credibility. On the carrier side, we require broker referrals for any carriers not known to our team and meet with most carriers in person before allowing them into the platform, leveraging our network of carrier partnerships managers at the border.

While we recognize the need to develop additional infrastructure as we scale, our size allows us to effectively manage the vetting process and maintain a trustworthy environment. Our focus is on leveraging technology to support this process and enhance operational efficiency.

Q: How does Cargado ensure the protection of sensitive data and transactions on its platform, and what measures are in place to mitigate potential cybersecurity threats?

A: Cargado takes a comprehensive approach designed to protect sensitive information and transactions. Unlike traditional load boards, our system prevents brokers from viewing each other’s postings, ensuring confidentiality. From the outset, our team has focused on identifying and addressing potential security threats, including fraud and identity issues. Data protection is a top concern for clients, particularly larger brokers who demand a secure alternative to existing load boards. We take these concerns seriously and continually enhance our security protocols to maintain trust and reliability on our platform.​

Q: At the beginning of the year, Cargado secured US$3 million in pre-seed funding. How will you allocate these funds to enhance Cargado’s offer?

A: The majority of our seed funding will be allocated to staffing, as our team is our most significant expense. This includes salaries for our engineering, sales, and carrier partnerships teams. The latter team includes personnel located at key border cities, such as Laredo and San Diego, who actively meet with carriers and facilitate the onboarding process. As we grow, we plan to expand this team further.

So far, we have spent only a portion of the funds raised, and we are ramping up our hiring efforts to support our growth objectives. Overall, our focus is on building a strong foundation that enhances our service offerings and expands our operational capabilities.

Q: What challenges have you encountered during the implementation of Cargado’s load board service in the Mexican market? 

A: One significant challenge has been shifting the prevailing communication methods in the industry, where many transactions occur via WhatsApp and LinkedIn. Trucking company owners often rely on large WhatsApp groups to coordinate loads and trucks, and changing established habits requires considerable effort.

While our platform is built in both Spanish and English to accommodate users from the start, we have mainly brought on known US trucking companies who operate in Mexico given our network. We are actively onboarding major Mexican trucking firms to enhance our presence. Over the next six to nine months, we aim to significantly grow our network within Mexico.

Looking ahead, our plan includes not just expanding the load board experience but also enhancing operations and execution tracking capabilities to provide a comprehensive logistics solution tailored to the Mexican market.

Q: How is Cargado integrating with transportation management systems (TMSs) to enhance the user experience for brokers and carriers? 

A: Our integration with brokerage TMSs is designed to streamline operations for both freight brokers and trucking companies. Brokers will be able to automatically post their freight from their TMS into Cargado. Once they receive bids from carriers, our system will facilitate the automatic assignment of loads back to their TMS. This integration ensures that all information is synchronized in real time, allowing for more efficient operations and improved data management. As we collect more data, we will enhance our platform’s functionality to provide even greater support to our users.

Q: How is the logistics market expected to evolve with the rise of nearshoring and increased trade between the United States and Mexico?

A: The cross-border logistics market is poised for significant growth as more freight brokers pursue opportunities in this space. As nearshoring and trade between the United States and Mexico continue to rise, logistics and trucking companies will have to adapt and grow alongside these trends. 

The trade imbalance will likely widen, increasing the pricing of northbound freight from Mexico unless more raw materials are shipped southward. Overall, this evolving landscape presents a lucrative opportunity for stakeholders in the logistics sector.

Q: What are your goals for Cargado over the next year, and how will you measure success as you grow?

A: Over the next year, Cargado aims to evolve beyond a simple load board into a comprehensive platform for cross-border logistics in Mexico. We want to facilitate collaboration among all parties involved in the freight process, enhancing how they negotiate rates, share capacity, and communicate. We plan to streamline the complex exchange of information that occurs in cross-border shipments, which often involves multiple stakeholders, including carriers, customs brokers, and logistics providers. By bringing this entire process online, we will enable better collaboration and communication among all participants.

Our technical team combines deep industry knowledge with technical expertise. We will continue to strengthen our engineering talent, particularly looking to recruit engineers in Mexico. Success will be measured by our ability to create a seamless collaborative platform that improves operational efficiency for all users in the cross-border freight market.

Cargado is the software stack connecting United States and Mexico supply chains, starting with their invite-only cross-border load board. Mexico is now the US's most important trade partner; it is time to upgrade the supporting technology and logistics.