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BNSF rail to resume issuing grain shuttle permits to Mexico, company says
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BNSF rail to resume issuing grain shuttle permits to Mexico, company says
Sep 30, 2024 10:50 PM

CHICAGO, Sept 30 (Reuters) - Berkshire Hathaway ( BRK/A )-owned

BNSF Railway will resume issuing permits for grain

shuttles heading to Mexico starting Tuesday, the company told

Reuters on Monday, in a move that could help ease some delays

impacting agricultural exports.

The news comes as U.S. East and Gulf Coast port workers are

set to go on strike on Tuesday, with no talks currently

scheduled to head off a stoppage.

Rail backlogs have been disrupting export trade between the

United States and Mexico and snarling agricultural supply chains

as the fall harvest is under way.

In late August, BNSF stopped issuing permits for grain

shuttle trains going into Mexico, in part because booming demand

outstripped the system's capacity, creating heavy congestion and

a growing backlog of loaded trains, according to the company and

agricultural export sources.

BNSF said it will resume issuing the permits, except for a

small number in early October. Some permit requests still may

not be fulfilled, and BNSF is monitoring the situation, the

company said in an email to Reuters.

"BNSF's actions are a great first step to getting ag

commerce flowing freely between the countries again," National

Grain and Feed Association President Mike Seyfert said Monday.

"Until this bottleneck is fully addressed and trains are moving

without delay, U.S. carriers and shippers could still face

unexpected delays."

BNSF said it has continued to move agricultural trains of

grains and grain products to Mexico during this process.

"We only limit shuttles due to congestion," the company

said.

Union Pacific Corp ( UNP ) also has stopped issuing permits

for grain shuttle trains to Mexico, according to its website.

Ferromex (FXE), the Mexican railroad that interchanges with

BNSF and Union Pacific ( UNP ), has embargoed permits for grain trains

at border crossings at Eagle Pass and El Paso, Texas, USDA said.

A UP spokesman said the company is closely monitoring the

situation. Ferromex did not respond to a request for comment.

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