---
title: New Mexican Regulation Adds Complexity for Petroleum Shippers as Rail Traffic Edges Higher
description: FTR’s Joseph Towers examines new Mexican export regulations and October rail traffic trends, with carloads up 1.5% and intermodal down 0.8%.
---

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# [New Mexican Regulation Adds Complexity for Petroleum Shippers as Rail Traffic Edges Higher](https://today.ftrintel.com/rmu-oct-17-2025)

 Written by [Joseph Towers, Sr. Analyst, Rail](https://today.ftrintel.com/author/joseph-towers) | 10/20/25 7:53 PM

**A Quiet Week, but Not Without Headlines**

With the ongoing U.S. government shutdown limiting new data releases, this week’s rail market updates were light—but far from uneventful. To start, the deadlines are approaching for the legislation introduced by the Mexican government last month, targeting trucks and railcars carrying petroleum products into Mexico.

Meanwhile, rail traffic data showed modest gains across North America, driven by strength in key carload sectors.

**Mexico’s New Regulation: Tight Deadlines, Heavy Demands**

In late September, the Mexican government rolled out new requirements affecting U.S. petroleum exports to Mexico moved by **rail or truck** (non-pipeline modes).

The rule mandates that:

- Each **piece of equipment must display a large QR code**.
- **GPS tracking** must be installed, transmitting data every 30 seconds to the Mexican government.

While many trucks already meet the GPS requirement, the **timeline for railcars—just 30 days to install GPS units—is unrealistic. **The QR code mandate, which took effect September 25, gives shippers only **20 business days** to apply codes once they receive them.

FTR is monitoring this closely, as the policy could create near-term logistical challenges for cross-border energy movements. 

**North American Rail Traffic: Up Slightly in Early October**

For the **week ending October 11, 2025**, total North American rail traffic rose **0.3% year over year**, according to the **Association of American Railroads (AAR)**.

- **Carloads:** +1.5%
- **Intermodal units:** –0.8%

Despite mixed performance, most commodity groups saw year-over-year gains, led by **grain**, **non-metallic minerals**, and **motor vehicles**.

**Commodity Performance Overview**

Carload growth was widespread, with the following standouts:

- 🌾 **Grain:** +10.0%
- 🪨 **Non-metallic minerals:** +9.7%
- 🚗 **Motor vehicles:** +7.4%
- 🛢️ **Petroleum and chemicals:** +5.5% and +4.1%, respectively

However, two categories continue to underperform:

- 🧱 **Metallic ores and metals:** –10.8%
- 🌲 **Forest products:** –5.6%

**Intermodal: Weakness in the West, Gains in the East**

After two consecutive weeks of improvement, intermodal volumes slipped, down **3.3% year over year** in the U.S.

- **Eastern carriers** (CSX, Norfolk Southern) posted moderate growth, due in large part to weak 2024 levels, resulting from the port strikes.
- **Western carriers** (BNSF, Union Pacific) saw notable declines, with **Union Pacific** continuing to underperform.

The uneven results still reflect distortions from the **2024 Eastern and Gulf Coast port strike**, which created weaker comparison points last year.

**Canada and Mexico Add Balance**

- **Canadian carriers** reported modest growth: +0.8% overall. 
    - **CN:** Slightly positive
    - **CPKC:** Minor decline
- **Mexico’s GMX** posted a standout **+60.5% year-over-year** gain—reflecting both a weak 2024 baseline and notably high nominal volumes this fall.

**Upcoming Events: Connect with FTR**

I’ll be sharing additional insights and forecasts at several upcoming industry events:

- 📍 **Southeast Association of Rail Shippers**  
  *October 21–22 | Atlanta, GA*
- 📍 **FTR State of Freight Symposium**  
  *November 4 | Houston, TX*
- 📍 **Rail Equipment Forum (with Railroad Financial Corp.)**  
  *November 5 | Houston, TX*

If you plan to attend, I’d love to connect—whether it’s to talk market trends, equipment outlooks, or data insights.

FTR will continue tracking regulatory updates, freight flows, and macroeconomic indicators to provide the industry with the clarity needed for strategic decisions.

 

[View full post](https://today.ftrintel.com/rmu-oct-17-2025)

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