MEXICO – Union Pacific (UP) and BNSF Railway have temporarily stopped issuing permits for grain shuttle trains bound for Mexico due to mounting congestion at the Texas-Mexico border.
The US Department of Agriculture’s (USDA) Grain Transportation Report details that this decision was driven by a significant backlog of loaded trains waiting to cross into Mexico.
The embargo is further complicated by permit restrictions imposed by Mexico’s national railroad, Ferromex (FXE), which interchanges with both UP and BNSF at key Texas border crossings, such as Eagle Pass and El Paso.
FXE implemented these embargoes across several traffic segments, including grain, as part of its strategy to control congestion within its rail network. This has led BNSF and UP to impose additional restrictions specifically targeting grain transportation.
BNSF initially suspended permits for grain shuttles from August 21 to September 20, extending the deadline to September 30 due to ongoing issues. Meanwhile, UP halted all grain shuttle permits as of September 18, with no resumption date announced, citing the need to clear the current backlog or wait for FXE to lift its embargoes.
The impact of these disruptions is significant, with round-trip times for grain shuttle trains to Mexico increasing by 20% compared to the same period last year. According to UP, as of mid-September, 18 trains are stuck waiting for FXE crossing slots.
This backlog threatens to disrupt the flow of essential agricultural products such as corn, soybeans, and wheat, which are key commodities exported to Mexico.
Industry experts warn that extended delays could have broader implications for US-Mexico trade, potentially straining supply chains and increasing transportation costs.
Mexico is a major market for US grain, and any prolonged disruption could affect not only producers but also consumers reliant on timely agricultural shipments. Both rail operators and FXE are working to resolve the bottleneck, but the timeline for relief remains uncertain.
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