Due to a derailment south of Eagle Pass, Texas, were permits suspended for embargoes Ferromex.
This was reported by the American railway company Union Pacific in a statement where it was detailed that the suspension is effective immediately.
The suspension will remain in effect until the current train line is cleared and the trains can start moving when the authorization is released, the document adds.
“Given the high volume of agricultural unit trains in preparation and the additional volume anticipated next week, Union Pacific and Ferromex have decided to suspend the issuance of future permits for active Ferromex embargoes (FXE001924 and FXE002024).”
Union Pacific
Union Pacific responds to what will happen to trains at loading facilities or with an upcoming travel forecast
Union Pacific He explained that the agricultural unit trains that are currently in the loading facilities or with an upcoming travel forecast for the destinations of Eagle Pass or El Paso, will be able to use the permit process for a trip to Mexico.
However, the statement highlighted, trains in this situation “must find an alternative destination.”
“All empty trains returning for next trip load planning for Eagle Pass or El Paso destinations, without a trip in the current forecast, will need to find an alternate destination.”
Union Pacific
Union Pacific He noted that he expects to accept new forecasts for Eagle Pass and El Paso in about seven days and if the customer requests a unit train shipment, all applicable tariff charges will be applied, he added.
“Union Pacific’s network is healthy and well positioned to handle harvest volumes”
Union Pacific
Ferromex
How will the suspension of Ferromex permits after derailment affect Mexico?
The suspension of Ferromex permits will generate problems for transporting grains from the United States, given the limited availability of transportation, considered Juan Carlos Anaya, director of the Agricultural Markets Consulting Group (GCMA).
The expert recalled that BNFS and Union Pacific have communicated embargoes due to congestion due to interruptions in the exchange of trains to Mexico and vice versa by Ferromex.
Anaya explained that US grain imports increased more than 20 percent due to lower production in Mexico and added that 60 percent of imports come by rail.
In that sense, he pointed out that of all imports made in Mexico, 85 percent come from the United States.
Ferromex (Juan Ortega / Cuartoscuro)
The situation causes railway congestion and serious problems for companies that import these products from the US.
This is because the grains do not arrive adequately and on time, a situation that is most detrimental to the livestock and agroindustrial sectors.
Finally, Anaya highlighted that since there is less availability of trains to move grain, freight rates have increased up to 15 percent in the last three months.
The consequence: Companies have to go out and buy grains elsewhere and at higher prices.
Anaya estimated that the problem could be resolved in about two months; However, he pointed out that it is urgent for railway companies in both Mexico and the United States to put things in order.
Also, that they establish commitments that avoid increased costs and ensure the supply of grains.