MEXICO CITY, MEXICO — Union Pacific (UP) and BNSF Railway have stopped issuing permits for grain shuttle trains to Mexico because of congestion and a growing backlog of loaded trains, according to the US Department of Agriculture’s (USDA) Grain Transportation Report.
Ferromex (FXE), the Mexican railroad that interchanges with BNSF and UP, has permit embargoes in place for Texas border crossings in Eagle Pass and El Paso. FXE issued embargoes on multiple traffic segments, including grain.
In response, BNSF and UP have levied additional restrictions targeted only to grain, the USDA said.
BNSF stopped issuing any permits for grain shuttle trains destined to Mexico from Aug. 21-Sept. 20, extending it to Sept. 30.
UP stopped issuing any permits on Sept. 18 for any grain shuttle trains to Mexico until FXE lifts its embargoes or the current train backlog is cleared.
Round-trip times for grain shuttle trains to Mexico are up 20% compared to the same time last year, according to UP. According to a Sept. 18 report, UP has 18 trains waiting for an FXE crossing slot.
