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ITS Logistics

Alternative routes sought as US-Mexico rail traffic hits the buffers

USA access sign on the border

The LoadStar
January 4, 2024
Ian Putzger

The wave of factory openings in Mexico caused by near-shoring augurs a rising tide of exports to the US meeting limited trucking and border processing capacity, which will likely result in longer transit times and elevated costs.

Some consultants have raised the option of bypassing the land border by putting cargo on ships moving across the Gulf of Mexico, arguing that this may work well for certain commodities and routes.

Paul Brashier, VP drayage and intermodal at ITS Logistics, has also heard of such plans, and he said this could also go some way towards shippers’ carbon footprint targets, adding: “From a sustainability standpoint, it’s better to use a combination of water and rail rather than all-rail.”

Meanwhile, on 26 December, a unit of intermodal giant Grupo Mexico Transportes announced the acquisition of a 60% stake in Golfo de Mexico Rail Ferry Holdings and Rail Ferry Vessel Holdings, two companies that offer maritime transport services of rail cars between the US and Mexico.

Read the full article here.

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