Mexican imports of U.S. agricultural products rose 27% in the first seven months of 2024 from a year earlier, according to government data, but rail capacity can’t keep up with demand, said National Grain and Feed Association President Mike Seyfert.
Rail delays are disrupting export trade between the United States and Mexico and hampering agricultural supply chains in the midst of the fall harvest, farmers' groups said Friday.
A possible strike at ports on the East Coast and the Gulf of Mexico, which could begin as early as Tuesday, would make matters worse, nearly 200 farm groups said in a letter sent to the White House on Friday.
While Mexico is the top U.S. corn export market, it has also been a key outlet this year for agricultural exporters seeking to offset slow purchasing from China, a top destination for the commodity.
Mexican imports of U.S. agricultural products rose 27% in the first seven months of 2024 from a year earlier, according to government data, but rail capacity can’t keep up with demand, said National Grain and Feed Association President Mike Seyfert.
Union Pacific Corp and Berkshire Hathaway-owned BNSF Railway have stopped issuing permits for grain trains to Mexico because of congestion and a growing backlog of loaded railroads, according to the Union Pacific and U.S. Department of Agriculture (USDA) website.
Ferromex, the Mexican railroad that trades with BNSF and Union Pacific, has also seized permits for grain trains at the Eagle Pass and El Paso, Texas, border crossings, the USDA said.
Union Pacific said it is working to facilitate smoother crossings and reduce congestion at the border. BNSF and Ferromex could not be reached for comment.
The situation has left some grain sellers struggling to find new buyers and to secure empty railcars from Mexico for shipments, Seyfert said.
"When you're trying to make room for what's projected to be a big corn crop and a big soybean crop, the last thing you need is to try to find new business if you can't deliver to the customer," Seyfert said.
