Border Delays: U.S.-Mexico Trade Faces Disruption

U.S. companies shifting manufacturing to Mexico are facing unexpected roadblocks. Delays at the border due to a surge in migrants and other disruptions are creating a big challenge for the transportation of goods, showing that bringing production closer to home has its own risks.

The Issue:

• Ferromex suspended operations due to migrants hitching rides, leading to delays in trucks and trains.

• U.S. Customs closed rail and truck crossings at El Paso and Eagle Pass, Texas.

• Additional issues with Mexico’s customs system and resumed secondary inspections exacerbate the problem.

What Experts are Saying:

• Niels Larsen, a freight forwarder executive, emphasizes the human lives at risk amidst the logistics challenge.

• Mike Burkhart from C.H. Robinson highlights the severity of recent bottlenecks.

Effects:

• Companies are experiencing uncertainty and bottlenecks, mirroring global supply chain issues.

• Last-minute border switches and poor infrastructure add to the woes, making the border crossing for goods increasingly difficult.

The border disruptions underline the growing complexity and unpredictability of global supply chains, even as companies seek to mitigate these issues by moving production closer to home.

Source: WSJ