Border Issues Impact Trinity’s Quarterly Deliveries

Trinity Industries, Inc. (Trinity) on Oct. 3 announced that it delivered 4,325 new railcars in the third quarter, 685 units below the company’s third-quarter projection, due to “the closing of the U.S.-Mexico border by the U.S. Customs and Border Protection Agency (CBP).”

In addition, Trinity says, increased state vehicle inspections have resulted in truck traffic congestion, negatively impacting the company’s supply chain. “Continued rail and truck congestion at the border will negatively impact the company’s deliveries and supply chain until the congestion is resolved,” said Trinity, which is “actively monitoring rail and truck traffic as both continue to be impacted.”

On Sept. 20, the CBP suspended U.S. bound cross-border rail traffic in Eagle Pass, Texas, the primary border crossing Trinity uses for railcar deliveries from its manufacturing facilities in Sabinas and Monclova, Mexico. According to CBP, this action was taken to assist U.S. Border Patrol due to the recent influx of migrants at the border. While rail traffic operations resumed on Sept. 23, there are still substantial congestion and rail traffic challenges.

Trinity says it “remains in close contact with all stakeholders, including the relevant government agencies, and continues to evaluate available alternatives for rail and truck transportation between Mexico and the U.S.”

Trinity will provide an update on the situation and its financial impact on the company’s third quarter earnings call, scheduled for Nov. 2.