Politicians, industry leaders and farmers object to rail closure at U.S. border; Panama Canal shipping, low water on the Mississippi and Red Sea shippers take a new route.
Closed Border Reopens, Panama Canal Slowdown, Low Water on the Mississippi, Red Sea Shipping
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In an attempt to stop thousands of undocumented people flowing across the nation’s southern border, officials with U.S. Customs and Border Protection temporarily cut off traffic on two major rail lines.
Transcript
In an attempt to stop thousands of undocumented people flowing across the nation’s southern border, officials with U.S. Customs and Border Protection temporarily cut off traffic on two major rail lines. This is the second time in four months that trains running south to Mexico through the Texas towns of Eagle Pass and El Paso have been stopped. Thousands of railcars were halted on both sides of the border as the 24 trains that normally cross each day sat idle.
The move brought a storm of protests as politicians, rail companies and a long list of agricultural advocacy groups raised objections. The National Corn Growers Association, the American Soybean Association and the Meat Institute were joined by 43 other groups pressuring federal officials to reopen the rail bridges that cross the border to the nation’s number two trading partner.
Traffic on the Mississippi River continues to be slowed by low water levels. Normally, ice stops the movement of goods during the winter months but there is little if any on the route north of St. Louis. Lighter loads continue to be the order of the day as goods move towards Southern U.S. ports.
Further south, low water has cut the daily movement of container and cargo ships transiting the Panama Canal. Daily runs of up to 40 ships per day have been slashed by 40 percent to a maximum of 24 vessels every 24-hours.
According to the Panama Canal Authority, water saving measures have been successful but the transport of soybeans, grain and other commodities has been severely limited. According to the Soy Transportation Coalition, companies that pay higher toll fees like cruise ships, container vessels or automobile carriers will continue to have priority over agricultural loads.
The attacks on commercial ships in the Red Sea by Yemen’s Houthi rebels have shipping companies increasing the length of the routes for loads going towards the Suez Canal. The move is expected to trigger delays and increase shipping costs for oil, natural gas, grain and electronics that typically travel through the waterway separating Africa and the Arabian Peninsula, where 12 percent of the world's trade passes. In response to the growing impact to global trade from the attacks, the U.S. and several other nations have created a new force to protect those ships.
For Market to Market, I’m David Miller.
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