President Trump’s threat to close the Southern border has disrupted supply chains as delays are building for commercial vehicles crossing the border, especially northbound.
Delays of ten hours above normal are reported, and the threat of a total closure is accelerating efforts by shippers in Mexico to get goods loaded and moving. This, in turn, accelerates the congestion at the border, made yet worse by the reassignment of 750 Customs and Border Protection Agents.
The threat of a border closure- despite assurances it is not imminent- is intended to pressure Mexico to do more to constrain the flow of refugees to the border. At the same time, the re-negotiated NAFTA deal is pending a House vote, adding further to uncertainty.
Video Spotlight: Ripple effects of a potential Mexico border shutdown
This post is based on the Industry Week article, Mexico Border Wait Times Spike, by Michael Hirtzer and Thomas Black, April 8, 2019, and the YouTube video, Ripple effects of a potential Mexico border shutdown, by USA Today, April 3, 2019. Image source: Rouzes/Getty Images
Discussion Questions:
1. What uncertainties are shippers facing on cross border movements between the U.S. and Mexico?
Guidance: The Continue reading
