HOUSTON ,July 09-The flooding in northern Mexico that closed rail lines and disrupted chemical traffic is causing more problems than most anticipated, market sources said on Friday.
I know in my discussions with customers from Mexico, they are even in shock over the impact of all of this rain, a US chemical exporter said. Sometimes they think not being on the coastline will protect them from hurricanes not this time.
Flooding last week from Hurricane Alex and additional rain on Thursday from a tropical depression damaged rail lines around Monterrey, Mexico s third-largest city and a northern hub of industrial activity.
The closures were causing an estimated 30% hike in regional train shipment costs, a source said, noting that companies were having to invoke contingency plans for diverting containers from trains to trucks to circumvent blockages.
At the US-Mexico border, Union Pacific had reported closures at its railroad crossings in Brownsville, Eagle Pass and Laredo, Texas, according to company spokeswoman Raquel Espinoza.
As of Friday morning, the Laredo interchange was still completely closed, but limited crossing had begun at the Brownsville and Eagle Pass interchanges, Espinoza said.
We had a car loading on Monday, but Union Pacific is telling us they can t move it, a chemical distributor said. We expect delays, but hope it is all back to normal by next week.
Kansas City Southern said on Thursday that Alex had disrupted its rail service in northern Mexico. However, the company did not address the tropical depression.
The hurricane damaged tracks around Monterrey and Saltillo as well as on lines to Laredo and to Matamoros, the company said.
The company's subsidiary in Mexico, Kansas City Southern de Mexico, issued freight embargos at the US and Mexico border and into Monterrey while it repairs tracks.
Kansas City said some traffic could resume on Friday. However, it could take up to two weeks to clear congestion and move trains that are currently parked.
US soda ash market sources said the rains had also disrupted soda ash shipments to Mexico, its largest foreign customer.
The organisation in charge of US soda ash exports, American Natural Soda Ash Corporation (ANSAC), did not immediately reply to calls for comment.
The timetable for the delays varied widely by source. A plastics trader had said the closures could last until the weekend or middle of next week, while an ethanol supplier on Thursday said the hold-up could last at least 30 days.
The ethanol supplier said it was considering the option of sending material into Mexico by trucks.
One of the international bridges in Laredo, Texas, was reopened on Friday, according to news reports. However, the downtown bridge was still closed, and traffic on another bridge was restricted.
On Laredo's World Trade International Bridge, traffic was also restricted, according to reports.
The tropical depression made landfall on Thursday near South Padre Island, Texas, dumping as much as 10 inches (25 cm) of additional rain on parts of the border, according to the US National Weather Service.
I know in my discussions with customers from Mexico, they are even in shock over the impact of all of this rain, a US chemical exporter said. Sometimes they think not being on the coastline will protect them from hurricanes not this time.
Flooding last week from Hurricane Alex and additional rain on Thursday from a tropical depression damaged rail lines around Monterrey, Mexico s third-largest city and a northern hub of industrial activity.
The closures were causing an estimated 30% hike in regional train shipment costs, a source said, noting that companies were having to invoke contingency plans for diverting containers from trains to trucks to circumvent blockages.
At the US-Mexico border, Union Pacific had reported closures at its railroad crossings in Brownsville, Eagle Pass and Laredo, Texas, according to company spokeswoman Raquel Espinoza.
As of Friday morning, the Laredo interchange was still completely closed, but limited crossing had begun at the Brownsville and Eagle Pass interchanges, Espinoza said.
We had a car loading on Monday, but Union Pacific is telling us they can t move it, a chemical distributor said. We expect delays, but hope it is all back to normal by next week.
Kansas City Southern said on Thursday that Alex had disrupted its rail service in northern Mexico. However, the company did not address the tropical depression.
The hurricane damaged tracks around Monterrey and Saltillo as well as on lines to Laredo and to Matamoros, the company said.
The company's subsidiary in Mexico, Kansas City Southern de Mexico, issued freight embargos at the US and Mexico border and into Monterrey while it repairs tracks.
Kansas City said some traffic could resume on Friday. However, it could take up to two weeks to clear congestion and move trains that are currently parked.
US soda ash market sources said the rains had also disrupted soda ash shipments to Mexico, its largest foreign customer.
The organisation in charge of US soda ash exports, American Natural Soda Ash Corporation (ANSAC), did not immediately reply to calls for comment.
The timetable for the delays varied widely by source. A plastics trader had said the closures could last until the weekend or middle of next week, while an ethanol supplier on Thursday said the hold-up could last at least 30 days.
The ethanol supplier said it was considering the option of sending material into Mexico by trucks.
One of the international bridges in Laredo, Texas, was reopened on Friday, according to news reports. However, the downtown bridge was still closed, and traffic on another bridge was restricted.
On Laredo's World Trade International Bridge, traffic was also restricted, according to reports.
The tropical depression made landfall on Thursday near South Padre Island, Texas, dumping as much as 10 inches (25 cm) of additional rain on parts of the border, according to the US National Weather Service.
