Border Politics Disrupt Mexico-U.S. Supply Chain Movements

Border Politics Disrupt Mexico-U.S. Supply Chain Movements

April 20, 2019

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

Facebook
Twitter
The Auto Industry Is Running Out of Gas

The Auto Industry Is Running Out of Gas

America’s love affair with cars is losing its steam.

As city living makes a comeback and new transportation options emerge, the appeal of buying a new car fades. After decades of growth and record years, auto sales may have reached a peak or will get there soon.

The auto industry is trying to prepare itself for an inevitable decline and is investing in mobility services and self-driving cars. This worldwide trend marks the end of an era and the beginning of a quest for the next disruptive innovation.


Video Spotlight: Peak Car?


This post is based on a Bloomberg article, Car Troubles: This is What Peak Car Looks Like, by K. Naughton and D. Welch, February 28, 2019; and the YouTube video, Peak Car?, by Financial Times, January 26, 2014. Image source: Ionut Iordache/Getty Images

Discussion Questions:

1. What factors have contributed to the decline in private car sales?

Guidance: Factors include increasing numbers of people migrating to large cities where cheaper and more convenient transportation options abound; higher car prices; scarcity and cost of parking; young people’s dwindling interest in driving; and a growing elderly population for whom driving has become risky and stressful.

2. Continue reading

Facebook
Twitter