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In late September 2024, rail congestion and permit embargoes slowed grain shipments from the United States to Mexico during harvest, leaving exporters scrambling for buyers and empty railcars. A possible East and Gulf Coast port strike threatened a separate route for agricultural exports. That strike began in early October but ended after a tentative agreement on October 3, 2024; these events are historical, not a warning of a current strike.
What caused the U.S.-Mexico rail delays?
Reuters reported on September 27, 2024, that a backlog of loaded trains and rail congestion were disrupting agricultural shipments during the fall harvest. According to Reuters’ account of railroad and U.S. Department of Agriculture information, Union Pacific and BNSF had stopped issuing permits for grain shuttle trains to Mexico. Ferromex, the Mexican railroad that interchanges with those U.S. carriers, had embargoed grain-train permits at Eagle Pass and El Paso, Texas. These were reported operating constraints—not a closure of the border crossings.
An interchange is where rail traffic transfers between carriers. A permit embargo or suspension can limit the trains entering that handoff, while a backlog of loaded trains can delay new shipments and the return of empty railcars. Reuters said sellers were scrambling to find alternative buyers and struggling to get empty cars back for later shipments.
Why did the disruption matter to farmers and exporters?
Timing magnified the commercial pressure: the rail constraints coincided with harvest and large expected U.S. corn and soybean crops. Reuters reported that Mexico was the leading market for U.S. corn exports. It also reported, citing government data, that Mexican imports of U.S. agricultural products rose 27% in January–July 2024 compared with the same period in 2023. The report did not separately identify the underlying dataset.
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When a major expected destination is harder to reach, sellers may have to seek other buyers while their product and railcars remain tied up in the shipping chain. National Grain and Feed Association (NGFA) President Mike Seyfert described the challenge of finding substitute customers for the expected crops. On September 27, he said: “Farmers across the country are harvesting their crops, and the last thing NFGA members or the agricultural community can afford right now is a breakdown in any part of our nation’s shipping network.” The statement’s original spelling, “NFGA,” is retained in the quotation.
How could a port strike have compounded the problem?
The rail constraints and port labor risk were separate potential bottlenecks. Rail permits and cross-border interchange affected grain moving by rail into Mexico; a stoppage at East and Gulf Coast ports could interrupt other agricultural exports moving in containers. Low water on the Mississippi River was a third, distinct shipping concern raised at the time—not a cause of the rail embargoes or the port labor dispute.
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On September 27, 2024, NGFA and nearly 200 organizations and companies wrote to President Biden about the combined risks. Their letter said that about 40% of U.S. containerized agricultural exports moved through East and Gulf Coast ports, and that more than $30 billion in U.S. agricultural products had been exported to Mexico over the prior year. Both figures were estimates stated by NGFA and its signatories in the letter, not independently audited totals.
Did the port strike happen, and what changed afterward?
Yes. The International Longshoremen’s Association (ILA) strike began in early October 2024. NGFA reported that the ILA and United States Maritime Alliance (USMX) reached a tentative agreement on October 3, ending the strike. The labor contract was extended to January 15, 2025, while negotiations continued.
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In an October 4, 2024 update, NGFA said some new permits were again being issued for U.S. railroads, while challenges remained on the Mexican side of the border. A later NGFA account described improvement in the Mexican rail situation. Those updates describe the 2024 disruption; they do not establish current rail capacity, permits, labor terms, or crossing conditions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the episode shows about agricultural shipping risk
- Rail: Congestion, permit limits, and interchange constraints can slow cross-border grain movement and the return of empty cars.
- Ports: A labor stoppage can disrupt containerized exports on a different part of the shipping network.
- Inland waterways: Low river levels can create another transport constraint, independent of rail and port labor.
The September–October 2024 reporting documents how these risks coincided during harvest. It does not establish the current status of the U.S.-Mexico rail corridor or port labor agreements.
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- Professional Grain Moisture Meter: Quickly measure moisture (%), weight (g), density (g/L), and temperature (℃) of 20+ grains. Featuring a 3~35% moisture range, ±0.5% accuracy, and ≤0.2% repeatability, results are precise in just 10 seconds;
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- Package Contents: 1 Grain Moisture Meter, 1 Portable Aluminum Case, 1 x 200g Calibration Weight, 4 AA Batteries, 1 Power Adapter, 1 Small Brush, 1 Chute Bucket, 1 Sampler;
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