By Eric Huang.    Photo：Johannes Plenio

As the trade conflict between China and the United States continues to escalate, trade volumes between these two global economic giants have sharply declined. In response, trade between the United States and Mexico has been thriving, replacing traditional U.S.-China trade. To meet this demand, Union Pacific (UP) Railroad Company has announced the launch of a brand-new international intermodal cross-border transportation service, connecting Mexico's rapidly expanding industrial markets with high-demand regions in the U.S. Southeast.

According to a customer notification released by UP on Wednesday, this new service commences in Monterrey and Saltillo, Mexico, and travels through UP's border crossing in Eagle Pass, Texas (located on the Mexican side of Piedras Negras), ultimately reaching the following cities:

Atlanta, Georgia (Norfolk Southern Inman Intermodal Terminal)

Central Florida (CSX)

Fort Lauderdale, Florida (Norfolk Southern/Florida East Coast Railway)

Port Pierce, Florida (Norfolk Southern/Florida East Coast Railway)

Jacksonville, Florida (CSX or Norfolk Southern)

Miami, Florida (Norfolk Southern/Florida East Coast Railway)

Titusville, Florida (Norfolk Southern/Florida East Coast Railway)

In the notification, UP stated, "This new service complements our diverse customer base, including private asset owners and railroad container channel partners, bringing the highest volume of international intermodal capacity to the U.S. Southeast market. This move further underscores Union Pacific's unwavering commitment to the Mexican market, aiding in reducing road congestion and offering complete transportation solutions for businesses crossing this critical trade corridor."

In April of this year, UP, CN, and GMXT (Grupo Mexico Transportes, including Ferromex, Ferrosur, and IMEX) jointly launched the "Falcon Premium" international intermodal cross-border service, covering various categories such as automotive components, food, goods, household appliances, and temperature-controlled products. Falcon Premium connects CN's origin points in Canada and Detroit, following CN's former Elgin, Joliet, and Eastern Chicago detour route, then reaching GMXT's Mexican freight stations, including Monterrey and Saltillo, through Eagle Pass. In September, Railway Age reported that UP's recent operational adjustments have reduced transit times for customers shipping their Mexican international intermodal products via Eagle and Falcon Premium services, covering goods from Mexico, Chicago, the U.S. West Coast, and the Eastern U.S., including Detroit in Michigan and Louisville in Kentucky.

According to Union Pacific, the transportation time from Monterrey, Mexico, to Chicago currently exceeds two days, but the new international intermodal cross-border transportation service has reduced the transit time from Monterrey to Chicago by 24 hours. This places UP and its partners in a highly advantageous position to compete for increased volumes. The improvement in transit time is attributed to the company's reconfiguration in San Antonio, which enhanced connectivity and reduced dwell time, allowing the intermodal station in Laredo, Texas, to offer faster service. Another significant advantage of this international intermodal cross-border transportation service is the reduction of road congestion. With the growing flow of goods, especially in cross-border cargo transportation, road congestion has become a severe issue. This not only leads to traffic jams but also has adverse environmental impacts, including increased emissions and wear and tear on road infrastructure.

Mexico has long been one of the United States' primary trade partners, and this new international intermodal service will further facilitate this partnership. Many Mexican manufacturers ship their products to the markets in the U.S. Southeast, particularly in regions with high demand for Mexican products. Cities like Monterrey and Saltillo in Mexico are significant industrial hubs, with many companies having production facilities in these areas. The introduction of this service enables Mexican manufacturers to transport their goods to the U.S. Southeast more quickly, meeting market demand and accelerating the supply chain.

Furthermore, the growth of nearshore outsourcing in Mexico's manufacturing sector has driven demand for this service. More foreign companies are establishing their production bases in Mexico for easier access to the North American market. This trend has seen significant growth in recent years, underscoring the critical importance of rapid logistics services to ensure timely supply to North American markets.

Union Pacific's new international intermodal cross-border transportation service will have a positive impact on economic activities in Mexico and the U.S. Southeast, strengthening trade connections between the two countries, reducing road congestion, and providing faster transportation options. The launch of this service symbolizes a trend of enhancing international logistics connections among North American nations, which carries significant implications for regional economic development. Union Pacific's investment and innovation will contribute to improving the efficiency of international logistics while meeting customer demands, ultimately solidifying its position in this field. This also has positive implications for the future development of global supply chains, ensuring timely product delivery and promoting economic growth.

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