Borderlands is a weekly presentation of developments in the world of cross-border freight and trade of the United States and Mexico. This week: Mexico is fully opening the market for American potatoes; Japanese auto parts maker completes $ 29 million expansion in Mexico; Charger Logistics opens facility in Texas; and CG Railway launches its second ferry from the US to Mexico.
Mexico restores full access to American potatoes
After 25 years of export bans, all of Mexico is now open to American potatoes.
The first supplies of American potatoes under the new trade agreement moved from Idad to Mexico via Nogales, Arizona, on May 11th. This signaled the start of Mexico’s process of restoring full market access for U.S. potato growers after years of controversy.
“This is an important moment for the US potato industry and our partners in the federal government, who have been fighting for decades to restore access to this vital market,” said Jared Balkam, potato grower and president. National Potato Council (NPC), says Fr. to release.
Previously, American producers were allowed to sell potatoes only in the 16-mile zone across the U.S.-Mexico border. For decades, the Mexican government has banned American farmers and potato exporters from selling potatoes nationwide due to restrictions, citing pest control issues.
The NPC did not specify to which part of Mexico the consignment of potatoes is destined under the new trade agreement. The NPC did not immediately respond to a request for comment.
The spot rate of FreightWaves TRAC from Boise, Idaho, to Nogales, has continued a mostly downward trend from a high of $ 3.90 per week since January 14. The TRAC spot rate is currently $ 1.92 for this band.
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An agreement between the U.S. potato industry and the Mexican government was reached in December and allows shipments to be sent to any municipality in Mexico with a population of more than 100,000 people. There are no restrictions on the time of year when deliveries may occur.
Under the agreement, fresh potatoes from the U.S. will first be allowed through U.S.-Mexican ports of entry into El Paso, Texas; Otay Mesa and Calexico East, California; and Nogales.
In 2023, the ports of entry to Laredo and Far, Texas, will begin operating to export fresh potatoes to Mexico.
Despite the previous 16-mile border restriction zone, Mexico was the second largest market for fresh potato exports from the U.S. in 2021, accounting for 124,449 metric tons worth $ 60 million, according to the NPC.
Exports of potatoes to Mexico could increase to $ 250 million a year, with states such as Washington, Colorado, Oregon, Minnesota, Michigan and Idaho benefiting the most, the NPC said.
Exports of American potatoes worldwide increased by 10% in volume from July 2021 to March 2022 compared to the same period 2020-2021, according to data from the U.S. Potato Council.
“In some markets, there has been a drop in fresh potato supplies to the United States, including 90% in Vietnam and 43% in Thailand,” the statement said. U.S. Potato Council.
Japanese auto parts maker completes $ 29 million expansion in Mexico
Manufacturer of first level auto parts Jatco Ltd. a transmission line was recently opened at the company’s plant in the Mexican city of Aguascalientes.
The $ 29.5 million expansion will produce the company’s AXO transmission for the North American market. Jatco aims to produce 27,800 AXO transmissions annually.
The expansion involves the creation of 100 jobs at the plant, which employs more than 1,400 people. Jatco has two plants in Aguascalientes, which is located in central Mexico, about 486 miles from the U.S.-Mexico border.
Fuji, Japan Jatco also has factories in Japan, China and Thailand. The company employs more than 14,000 people.
Among Jatco’s customers are Nissan, Mitsubishi, Mazda, Subaru, Isuzu, Suzuki, BMW and Volkswagen.
Charger Logistics will open a transportation facility in Texas
Canadian operator Charger Logistics will open a logistics center of 132,000 square feet south of Dallas, according to Dallas Morning News.
The facility will be located in Hutchins, Texas, and construction will begin in the summer. According to state documents, it will include a two-storey office, a dry-refrigerated storage warehouse and a truck service shop.
Charger logistics was founded in 2003 in Canada and has a fleet of more than 900 trucks and 2,000 trailers including refrigerators, dry vans, chassis, flat beds and steps. The company has opened 30 acres Lareda cross-border facility in May 2019.
CG Railway has launched a second ferry from the US to Mexico
CG Railway has announced the launch of the Mayan ferry, which carries carriages between the ports of Mobile, Alabama, and Coatzacaalcas, Mexico.
The Mayan went into operation last week and can carry up to 135 freight cars across the Gulf of Mexico. His native ship, Cherokeeentered service last September.
Both vessels are 590 feet long and are designed to carry 135 wagons each with an expected maximum speed of 14 knots. to release. The journey across the Gulf of Mexico takes five days.
Mobile CG Railway operates a U.S. Class III freight railroad that transports up to 10,000 wagons of goods annually across the Gulf of Mexico. The company operates railway and ferry terminals in the ports of Mobile and Coatzacoalcos.
See: FreightWaves carrier update for May 20th.
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https://www.freightwaves.com/news/mexico-restores-full-market-access-to-us-potatoes
