For a combination of reasons, crossing the border at traditional over-the-road points - an already uncertain process thanks to traffic volumes and enforcement activities - is getting slower of late. And that means moving freight between the U.S. and Mexico via the most common method - truck - becomes more complicated.
Enter intermodal. Those that already use it know border crossings via rail are a barely noticeable part of the journey - making intermodal shipping the ideal solution for schedule certainty between these key North American trade partners.
What's currently causing delays at the U.S.-Mexico border?
Two particular issues are leading to extra delays at the U.S.-Mexico border this month. For one, the ongoing concern about tariffs - currently about halfway through a to this point temporary 30 day freeze - has caused many shippers to push to get freight across and into the U.S. to avoid that potential 25% surcharge. The increased volume in the short window has simply caused heavier traffic.
Secondly, a scheduled one-week customs systems update from February 8-15 has exacerbated those delays. Mexican customs agents experienced problems generating necessary documents due to the update of the Mexican Digital Window for Foreign Trade (VUCEM) platform, and the result was slower than normal, manual processing. Delays of up to eight hours at South Texas entry points were reported, with other major crossings in Texas like McAllen, Nogales in Arizona and Tijuana in California also affected.
In some cases, delivery delays of a full day were expected - with outbound movement from those border cities also slowed. Even more extreme anecdotal reports pegged delays of three days during this period. While customs agents who handle intermodal experienced the same software issues, the manner in which these shipments are processed meant
How intermodal avoids border crossing delays
Simply put, intermodal bypasses border crossings that use the road, because it uses the railroad to cross between the U.S. and Mexico. Shipping via this method then means more timing certainty and far fewer opportunities for delay, because:
- Containers stay closed on railcars as they cross the border.
- Railroads don't face long customs lines as they don't share border crossings with commercial trucks (and private cars and trucks).
- Seamless customs clearance can take place at intermodal hubs away from the border in the U.S. or Mexico without stopping at the physical border - with goods traveling in-bond in many cases.
- If there are ever situations when over the road crossing is faster, intermodal offers the flexibility of transferring containers to trucks for short-haul movement as well.
While it is often noted that domestic intermodal transit should budget truck, plus one or two days, intermodal journeys between the U.S. and Mexico can even be faster than truck on a regular basis due to the smoother border crossing alternatives.
Additional reasons to choose intermodal over truck for cross-border
Beyond avoiding border-crossing delays, intermodal offers additional advantages over a truckload shipping strategy between the U.S. and Mexico. Intermodal continues to offer consistent cost savings vs. truck - particularly with long-haul shipments (in the neighborhood of 10 - 15%). Plus, very real (and related) issues like truck driver shortages and security incidents with trucks in Mexico are avoided altogether. And intermodal is by far the more sustainable option - offering four-times more fuel efficiency than trucks.
Combine all these reasons with the fact that there is vast untapped (and growing) cross-border intermodal capacity, and now is a perfect time to add intermodal to your U.S. - Mexico shipping strategy. Simply request a quote with us, and we'll be happy to work with your business on custom solutions. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.
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