The recent U.S. tax reform includes a components (GILTI) that could increase the tax burden for heavily leveraged logistics firms with significant overseas operations. Rail operator Kansas City Southern have already flagged that as an issue because of its operations in Mexico. That comes as Mexican cross-border rail traffic growth has begun to slow. Combined import and export shipments fell 1% in the three months to February 28 on a year earlier after a 5% annual growth in the past three years. Looking ahead volumes may recover if new NAFTA rules of origin lead to a preference for region...
Supply Chain Research
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