The recent announcement by U.S. Customs and Border Protection regarding the closure of two key railroad bridge crossings in Texas has prompted immediate action from shippers and freight brokerages to mitigate delivery disruptions. The closures, which were announced on Dec. 17 and took effect the following day, have significant implications for trade and logistics.
C.H. Robinson, a major freight brokerage, was quick to respond to the situation. Mike Burkhart, VP for Mexico at C.H. Robinson, noted that the company was prepared with contingency plans. To assist their automotive customers with large shipments, the brokerage diverted freight to alternative crossings and explored options such as transitioning loads to trucks or planes.
Shifting freight from one mode of transportation to another involves several considerations. According to Burkhart, for one of C.H. Robinson’s customers, moving a load from a single railcar equates to the need for three truckloads. Time is also a critical factor in deciding how to redirect freight, as noted by Jason Mansur, vice president of enterprise partnerships at Valley Companies, a logistics provider based in Hudson, Wisconsin. Mansur highlighted the substantial impact of the border rail closures at Eagle Pass and El Paso, Texas, on the movement of goods, emphasizing that delays can significantly increase costs for shippers, carriers, and the broader economy.
Mansur also advised shippers who rely on open transit at the border to have plans for addressing such closures. Options might include creating emergency safety stock or sourcing alternatives, such as placing orders that can be moved via different modes like over-the-road truckload or air freight.
He further suggested that a robust procurement and supply chain organization should have alternative suppliers to fill any gaps, which could include domestic suppliers or those from other countries, depending on customer needs. Effective inventory management is crucial during these closures, with companies using just-in-time inventory facing a need to react more swiftly than those using other inventory management methods.
The closures are causing freight bottlenecks, as stated by Burkhart. While truck lanes at Eagle Pass and El Paso remain open, carriers are experiencing significant wait times. C.H. Robinson has rerouted some trucks to Laredo, Texas, where it has a new cross-dock facility designed for faster transloading activity.
A spokesperson for U.S. Customs and Border Protection did not provide a timeline for when the rail crossings might reopen. The last closure at Eagle Pass was in September and lasted three days. A Union Pacific spokesperson mentioned that about 45% of their cross-border business goes through Eagle Pass and El Paso, and resuming operations will be challenging and time-consuming.
The industry is therefore adapting to these changes, with companies employing various strategies to maintain the flow of goods despite the border rail closures.
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