Surface Transportation

Phoenix , which opened Feb . 1 , will create new volumes in 2024 .

While UP is bullish about Mexico volumes , it ’ s unclear what the short-term impact of the border crises in Eagle Pass , Texas , will have on confidence in its Mexico product this year . The Eagle Pass border crossing was closed twice late last year , while Canadian Pacific Kansas City ’ s ( CPKC ) cross-border service in Laredo remained open .

“ There is a limit to what you can do ... There is a place where we simply cannot concede anymore .”

CPKC and partners Bison Transport ( Canada ) and Schneider National ( US ) are marketing Laredo as the best option for Mexico business in 2024 . CPKC CEO Keith Creel said at the Midwest Association of Rail Shippers conference Jan . 11 that Ford Motor Company , General Motors and

Stellantis should strongly consider the stability of the Laredo crossing for their automotive supply chains .

Domestic intermodal volumes rose 3.3 % year over year in the fourth quarter , including a 6 % gain on shipments in domestic containers , according to the Intermodal Association of North America .

However , Knight Swift reported that its December truckload volumes fell “ more than anticipated ” and that winter storms in the first half of January caused further declines .

Intermodal volumes were lower through the first three weeks of January compared with the same period a year ago after 14 consecutive weeks of volume growth , according to the Association of American Railroads , declines that may also be tied to winter storms .

“ There is just a lot of uncertainty , and we don ’ t think it ’ s prudent sitting here at the end of January to give some sort of a forecast based on hopes for a second-half recovery ,” Jennifer Hamann , CFO of UP , said during the Jan . 25 call . “ We need to see a little more certainty and hopefully that plays out during the year , but sitting here today , we just don ’ t see that yet .”

email : ari . ashe @ spglobal . com

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www . joc . com February 12 , 2024 | Journal of Commerce 41