Trinity Industries Faces Delivery Delays Due to Border Congestion

Trinity Industries, a railcar provider based in Dallas, experienced a decline in its stock value following lower-than-expected deliveries in the third quarter. The company attributed the shortfall to congestion at the U.S.-Mexico border.

The stock price dropped by 7.4% to $21.62 during Wednesday trading, resulting in a year-to-date decrease of 27%.

Trinity Industries reported on Tuesday that its third-quarter deliveries totaled 4,325 units, which was 685 units below projections. This shortfall was primarily due to the temporary closure of the border by the U.S. Customs and Border Protection Agency. In addition, increased inspections led to truck and rail congestion, further impacting the company's ability to meet delivery targets.

The congestion issues arose from the closure of the northbound cross-border traffic at Eagle Pass, Texas on September 20. The closure was prompted by an influx of migrants, forcing Trinity to rely on alternative crossing points for deliveries from their two production facilities in Mexico.

Despite the resumption of border crossings on September 23, both congestion and rail traffic problems have persisted.

The ongoing delays in deliveries caused by border congestion are expected to have a continued negative impact on Trinity Industries.