Executive Briefings

As Trucking Capacity Slims, Shippers Looking at Rail More in U.S.-Mexico Trade Lanes

U.S. shippers importing goods from Mexico say they are looking for new transportation options, such as rail, as truckload capacity along the border gets tighter.

"We've had to diversify to get sustainable capacity," said Sonney Jones, division director of transportation in Dallas for flooring manufacturer Dal-Tile. "That's meant using more rail boxcars in some shorter lanes as a replacement for intermodal or truck capacity."

The peak shipping season could further squeeze available truck capacity, said Troy Ryley, director of transportation and distribution at Transplace Mexico.

As more goods are shipped directly from China to Mexico, fewer shipments are routed through U.S. ports, which means fewer trucks heading south to Mexico.

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"We've had to diversify to get sustainable capacity," said Sonney Jones, division director of transportation in Dallas for flooring manufacturer Dal-Tile. "That's meant using more rail boxcars in some shorter lanes as a replacement for intermodal or truck capacity."

The peak shipping season could further squeeze available truck capacity, said Troy Ryley, director of transportation and distribution at Transplace Mexico.

As more goods are shipped directly from China to Mexico, fewer shipments are routed through U.S. ports, which means fewer trucks heading south to Mexico.

Read Full Article