Trinity Industries delivered 4,325 new railcars in the third quarter of the year, 13.9% below the company’s own projection.
Deliveries were 685 units below that expectation due to the closure of the U.S.–Mexico border by U.S. Customs and Border Protection (CBP).
Increased state vehicle inspections led to truck traffic congestion. This situation negatively affected the company’s supply chain.
Additionally, ongoing congestion at the border, both for trains and trucks, disrupted Trinity Industries’ deliveries and supply chain operations.
On September 20, 2023, CBP suspended U.S.-bound cross-border rail traffic at Eagle Pass, Texas. This crossing is the primary route Trinity uses for railcar deliveries from its manufacturing facilities in Sabinas and Monclova, Mexico.
Trinity Industries
This large volume of trade directly and indirectly supports millions of U.S. jobs. Mexico is the first, second or third largest destination for merchandise exports from more than 30 U.S. states.
According to CBP, this measure was implemented to support the U.S. Border Patrol. The action responds to the recent increase in migrant arrivals at the border.
Although rail traffic operations resumed on September 23, challenges remain. Significant congestion and rail traffic issues continue to affect the area.
Trinity Industries, based in Dallas, Texas, leads the rail transportation sector in North America. Its subsidiaries operate under the TrinityRail trade name.
Through the TrinityRail platform, the company offers a range of services. These include railcar leasing, management, manufacturing, maintenance, and modifications.
In 2022, two-way trade between the United States and Mexico reached $863.4 billion. This volume solidifies Mexico as the second-largest U.S. trading partner.
During the same period, U.S. exports to Mexico totaled $362.7 billion, while imports from Mexico amounted to $500.7 billion.