Mexico’s largest port is on the verge of economic collapse as trucking companies face bankruptcy amid unprecedented customs delays and container backlogs following a workers’ strike.
Key Takeaways
- Mexico’s Port of Manzanillo, handling 45% of the country’s ocean carrier containers, is experiencing critical delays with customs inspections taking over 72 hours per unit.
- Trucking companies are facing imminent bankruptcy due to the operational paralysis, with thousands of containers backlogged and drivers experiencing health emergencies from extended wait times.
- The customs workers’ strike from May 12-15 over workplace harassment and poor conditions could cost the port $150 million in lost revenue, with normalization expected to take up to five weeks.
- Industry leaders are demanding immediate federal government intervention to implement a crisis management plan, but officials have yet to respond.
Port Crisis Threatens Mexico’s Trade Infrastructure
The Port of Manzanillo, Mexico’s largest maritime gateway handling approximately 45% of the country’s ocean carrier containers, remains in critical condition weeks after a customs workers’ strike officially ended. Despite operations technically resuming on May 21, severe staff shortages continue to cripple the port’s ability to process the massive backlog of containers. The port, which normally manages about 4,000 truck movements daily and processed nearly 4 million TEUs (twenty-foot equivalent units) in 2024, now faces logistical gridlock that threatens to undermine Mexico’s international trade capabilities.
“Thousands of containers and cargo are being held up and experiencing critical delays; yards are completely overwhelmed, and customs inspections often exceed 72 hours per unit, without adequate care and sanitation for our operators,” said Miguel Angel Martinez, president of Canacar.
The strike, which lasted from May 12 to May 15, erupted from accusations of workplace harassment and demands for improved working conditions and increased personnel. While relatively brief, the work stoppage created a cascading effect that has overwhelmed the port’s infrastructure. Customs officials are now struggling to process the backlog with limited staff, resulting in inspection times exceeding 72 hours per container – a process that should normally take a fraction of that time. This bottleneck has created a ripple effect throughout the entire supply chain, with some containers facing delays of over seven days.
Trucking Industry Faces Financial Collapse
The transportation sector is bearing the brunt of this crisis, with trucking companies facing dire financial consequences from the operational paralysis. Drivers are stranded for days waiting for cargo clearance, creating both humanitarian and economic crises. The extended wait times have become so severe that drivers are experiencing health emergencies, including heat stroke, as they remain confined to their vehicles with inadequate facilities and support. This humanitarian aspect adds another troubling dimension to an already critical situation.
“Trucking companies are on the brink of bankruptcy, as a result of these days of paralysis. We’ve already defaulted on payments to leasing companies, insurance companies, suppliers, and even our staff,” said Miguel Angel Martinez, president of Canacar.
The financial impact on transportation companies has reached a breaking point, with many unable to meet their financial obligations. This disruption threatens the livelihoods of thousands of workers and the stability of Mexico’s logistics sector. Martinez has outlined how trucking firms are defaulting on payments to leasing companies, insurance providers, suppliers, and even their own employees. The longer this crisis persists, the more likely these companies will face permanent closure, further destabilizing Mexico’s freight transportation infrastructure.
Economic Impact and Government Inaction
Industry experts estimate that the port disruption could cost approximately $150 million in lost revenue, with normalization expected to take up to five weeks if proper intervention measures are implemented immediately. As the gateway for nearly half of Mexico’s ocean container traffic, Manzanillo’s dysfunction threatens the nation’s economic stability and international trade relationships. The port’s strategic importance cannot be overstated – it serves as a critical link in supply chains connecting Mexico to global markets, particularly those in Asia.
“The wait times are so long that even drayage truck drivers have required medical assistance due to things like heat strokes for waiting in their truck for too long,” said Ernesto Hernandez Jr., logistics expert.
Particularly frustrating for industry leaders is the apparent lack of federal government response to the crisis. Canacar has called for immediate intervention to implement a comprehensive crisis management plan, yet these pleas have gone unanswered. The absence of government leadership during this critical situation highlights serious concerns about the administration’s commitment to protecting Mexico’s economic infrastructure. Without swift federal action to address the port’s staffing deficiencies and operational bottlenecks, the economic damage will continue to escalate, potentially causing long-term harm to Mexico’s position in international trade networks.
