With less than 1 percent of refrigerated cargo moved in containers or trailers by rail -despite this costing up to one-fifth less than truck transport-, Mexican intermodal rail will be able to grab a market share if it can improve security, reliability and capacity challenges.
Shippers and logistics don't choose rail for perishable goods for a variety of reasons, among them the lack of scheduled refrigerated rail services and a shortage of power points on the trains and in some inland ports.
The perception of poor service reliability and a recent rise in train robberies have kept intermodal’s share of refrigerated cargo moved domestically, across the US land border or by ocean, minuscule.
Together the factors present a challenge that the intermodal sector must overcome, or at least reduce, if the volume of refrigerated cargo moved by rail is to grow and become a routine part of the cold supply chain. A smoother, more secure service could attract shippers looking for alternatives to existing transportation modes, especially as Mexico’s trucking sector struggles with capacity tightened by a driver shortage and new driver hours-of-service rules enacted last year.
Less than 1 percent of the refrigerated cargo moved in Mexico goes by intermodal transportation, in containers or trailers, according to the Association of Mexican Intermodal Transporters (AMTI). In comparison, 2-3 percent of refrigerated cargo goes by intermodal in the US, according to Tiger Cool Express, an intermodal reefer rail provider.
Refrigerated imports into Mexico include proteins and fruit, and exports include pharmaceuticals, fruits & vegetables and candy. Drewry’s Reefer Shipping Annual Review and Forecast 2018/19 reported that Mexico was the largest exporter of avocados in 2017, moving more than 900,000 metric tons (992,000 tons), and the seventh-largest exporter of bananas, moving about 575,000 metric tons, mostly to North America. Mexico was also the third-largest exporter of exotic fruit, behind Costa Rica and the Philippines.
Source: joc.com
