Industry News

Expect Higher Transport Costs in Mexico

Expect Higher Transport Costs in Mexico

Increase in Shipping Rates and Blockades

A 15% to 20% increase in gasoline and diesel prices set by the Mexican government has led to protests and blockades throughout 12 states in Mexico.  Unfortunately the situation has escalated to looting of gas stations and other unrelated stores.

Mexico Blockades and Mass Destruction

Our Mexican Shipping Experts state not only are the gas prices increasing, but freight costs will also continuously increase by February. Tolls have already increased and transportation rates and fuel surcharge will go up.

We are seeing transport delays inside of Mexico to and from manufacturing plants, however freight is still moving!  Shippers, forwarders, and brokers continue to communicate with the carrier to track their cargo and delays.  Depending on the route, carriers won’t know when protesters are blocking.  They communicate with one another over radio and keep going.   If a carrier sees a blockage, it stops beforehand and notifies the rest of the team.  If there is no blockade notice, the carrier just keeping on trucking on.  The main solution right now is to keep communicating with the carriers.

Our experts also state gas station owners are announcing they are closing and not supplying gas.  According to Journal of Commerce, “The first prices were put in place Jan. 1 and will stay in effect through Feb. 3. There will be two weekly updates in early February. After Feb 18., prices will be adjusted on a daily basis.” [Source]

Our shipping experience has shown no problems with transportation to Monterrey. Once our carriers head to Querétero, we hear of problems. Chihuahua is considered the largest problem for transportation at this point.

The Mexican Government has not stepped in and there hasn’t been much communication.  Scarbrough will continue to monitor the situation closely.  At this point, expect small delays in transit and higher prices.

Residents steal gasoline and diesel from a gas station following protests against an increase in fuel prices in Allende, southern Veracuz State, Mexico, late on Jan. 3. Photo Source: Erick Herrera / AP
Residents steal gasoline and diesel from a gas station following protests against an increase in fuel prices in Allende, southern Veracuz State, Mexico, late on Jan. 3. Photo Source: Erick Herrera / AP

 

To request a quote to or from Mexico or speak with our Mexico team, please email mexico@scarbrough-intl.com.

Related news and other sources:

Spanish Announcement on CANACAR
The National Chamber for Cargo Transportation

Journal of Commerce