Union Pacific Grain Shuttle Customer Announcement

Announcement Number: BU2024-39
Categories: Grain
Posted Date: September 18, 2024

 Challenges moving grain shuttle trains into Mexico continues. The metrics included below summarize the current Mexico shuttle situation.

  • Demand: September month to date 32 loaded shuttles have been released for Eagle Pass and El Paso gateways (2 trains per day)
  • Border Crossings: September month to date 22 shuttles have crossed into Mexico over the Eagle Pass and El Paso gateways (1.4 trains per day)
  • Current loaded trains held enroute for Eagle Pass and El Paso – 5 (held, not moving waiting for FXE crossing slot)
  • Current trains holding at origin for Eagle Pass and El Paso – 13 (released, not yet departed waiting for FXE crossing slot)
  • Shuttle cycle times – Mexico cycle times are 20% higher than 2023, currently at 1.3 turns / month (last 3 months)

As a result of ongoing fluidity concerns and a large pipeline of loaded grain shuttle trains destined to Mexico, Union Pacific and FXE will immediately suspend issuance of future permits for the active FXE embargos (FXE001924 and FXE002024). Future permit issuance will be suspended until FXE lifts its embargo or until the current train lineup is cleared and trains are once again able to launch upon release.

Grain shuttle trains currently at loading facilities may utilize the permitting process for a trip to Mexico or be allowed to divert to an alternate destination without a diversion charge. All empty trains returning for loading with the next trip planned for Mexico will be required to find an alternative destination (with the diversion charge waived). Shuttle customers that have a final shuttle trip in the last part of September will have an option to cancel the shuttle’s remaining time without penalty, or work with the UP commercial team to discuss alternatives. If a shuttle laydown is requested by the customer, all applicable tariff charges will apply.

The rest of Union Pacific’s network is healthy and positioned well to handle shuttle volume. We appreciate your assistance in working through Mexico supply chain challenges in advance of harvest.

Please contact your UP sales representative with questions. Thank you for your business.