• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Border Shutdowns Could Cost Billions, Local Business Officials Warn

Border Shutdowns Could Cost Billions, Local Business Officials Warn

Border Shutdowns Could Cost Billions, Local Business Officials Warn
November 27, 2018
Bloomberg

Shutting down ports of entry at the U.S.-Mexico border near San Diego could cost local industry billions as the Trump administrations grapples with how to control an influx of immigrants, say business officials in the region.

Even temporary closures are creating traffic snarls and delays, clogging the border as vehicles lined up for hours to cross into the U.S. and already slowing economic activity, said Paola Avila, a vice president at the San Diego Chamber of Commerce. The threat of violence prompted owners of a shopping center near the San Ysidro Port of Entry to evacuate the mall and shutter stores Sunday in the middle of the holiday shopping weekend.

Extended border closings and delays could mount to billions of dollars in economic losses over the coming months, Avila said.

"The uncertainty of border closures occurring at any time is a substantial economic threat for our region," she said. “Our economies are inextricably linked. We produce together, we work together, we have families together, we have an integrated supply chain worth $2.5bn."

Border Rush

U.S. border officials temporarily closed and reopened the San Ysidro port of entry between Tijuana and San Diego on Sunday, one of the busiest border crossings in the world. Border officials fired tear gas to repel a group of Central American migrants rushing toward the U.S. border. Images of the confrontation were broadcast around the country, prompting fears of a growing economic impact even if actual port closings remain few and far between.

"Shutting down a border just completely stops economic opportunity,” said Cindy Ramos-Davidson, president of the El Paso Chamber of Commerce in Texas. Even an hour can be devastating as commerce between the countries grinds to a halt, she said. “Think about all those things that would come to a stop, what would happen. It would be absolutely devastating not only to our community but I think to the country as a whole.”

Among the industries affected are electronics, aerospace and motor vehicle parts, medical device manufacturing and pharmaceutical medicines, e-commerce and tourism, Avila said.

Crossing Delays

Border wait times at the Otay Mesa port of entry in California, a major hub for commerce, increased from a 30-minute maximum to as much as five hours on Sunday as traffic sought to avoid San Ysidro. Five of the 26 lanes at San Ysidro were still shut on Monday, she said.

“There were cars that were stuck there for six hours at San Ysidro, not moving, and this was on one of the biggest weekends of travel in our nation,” said Avila. Businesses ”will feel a big loss from that.”

The Las Americas Premium Outlets, located virtually next door to the San Ysidro port of entry, reopened Monday after the border fracas raised safety concerns for shoppers and employees, according to a statement the mall posted on Facebook.

Mexico deported almost 100 migrants back to their country of origin after they “violently” attempted to cross into the U.S. on Sunday, according to the government’s national migration institute, or INM. An estimated 8,200 migrants from the so-called caravans heading to the U.S. from Central America are now in Mexico. No clashes have been reported along the border in Texas.

The situation could worsen if the number of migrants waiting at the border increases amid delays in processing asylum claims, said Avila. “The uncertainty hurts the economy because it prevents business travel and tourism on both sides of the border,” she said.

“It’s not only Mexico that will be impacted, it’s the U.S. as we head into the holiday season and shopping. This situation is going to last for several weeks, if not months.”

RELATED CONTENT

RELATED VIDEOS

Logistics Global Gateways Global Logistics LTL/Truckload Services Transportation & Distribution Regulation & Compliance Supply Chain Security & Risk Mgmt E-Commerce/Omni-Channel Healthcare Industrial Manufacturing Pharmaceutical/Biotech Retail Latin America North America
KEYWORDS E-Commerce/Omni-Channel Global Gateways Global Logistics healthcare Industrial Manufacturing Latin America Logistics LTL/Truckload Services North America Pharmaceutical/Biotech Regulation & Compliance Retail SC Security & Risk Mgmt Transportation & Distribution
  • Related Articles

    Trump Said Amazon Cost the USPS ‘Billions.’ But the Post Office Has a Different Explanation.

    U.K. Customs Checks Could Cost $1.3Bn a Year Post-Brexit

Bloomberg

If Tesla Isn’t Good Enough for an ESG Index, Then Who Is?

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Medical drone

    Amazon May Be Proof That Delivery Drones Aren’t Practical

    Last Mile Delivery
  • Warehouse worker

    Why Higher Wages Alone Won’t Solve the Supply Chain Labor Shortage

    Warehousing
  • Adidas

    From Sneakers to Teslas, China Lockdowns Upend Global Supply Chains

    Coronavirus
  • SEC building seal

    Get Ready for the Next Phase of ESG: Mandatory Corporate Due Diligence

    Regulation & Compliance
  • ESG Guide

    Confronting the ESG Imperative in Supply Chains

Digital Edition

Scb may 2022 sm

2022 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing