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Reliability of Border Crossings Key in Mexico-U.S. Intermodal Contract Negotiations

Major shippers focus on border crossing reliability in Mexico-to-U.S. intermodal contract discussions, influenced by recent closures at Eagle Pass and El Paso.

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reliability of border crossings key in mexico-u.s. intermodal contract negotiations

The reliability of border crossings has become a critical factor in ongoing contract talks between major Mexico-to-U.S. shippers and North-American rail intermodal providers. High-profile companies like Mondelez International, Samsung Electronics, Whirlpool Corporation, and various Detroit auto manufacturers are prioritizing this aspect in their negotiations. The recent migrant-related closures at Eagle Pass and El Paso in Texas have notably influenced these discussions.

These closures have prompted companies using the Eagle Pass crossing to work on reassuring their current and potential customers. They are keen on maintaining and expanding their clientele, even if it means offering competitive pricing as an incentive. On the other hand, competitors who utilize the Laredo crossing, which hasn’t experienced such closures, are seizing this opportunity. They are highlighting the crossing’s reliability to position it as a more stable and dependable option for intermodal transportation.

This focus on border crossing reliability underscores the importance of smooth, uninterrupted transportation for businesses involved in cross-border trade. The recent disruptions have highlighted the vulnerabilities in the supply chain and the need for robust contingency planning. Companies are now more than ever aware of the need to ensure that their logistics partners can provide consistent and reliable service, especially in the face of unforeseen challenges.

As these contract talks progress, the ability of intermodal providers to guarantee the reliability of border crossings will likely play a significant role in their success in securing contracts with these major shippers. The situation also serves as a reminder of the interconnected nature of international trade and the impact that geopolitical and social issues can have on the logistics and transportation sectors.