Mexico’s crucial Port of Manzanillo is on the brink of economic collapse as transporters face bankruptcy amid crippling delays and massive container backlogs, despite the end of a customs workers’ strike.
Key Takeaways
- Mexico’s largest port faces severe operational disruptions with customs inspections taking over 72 hours per container, threatening the financial stability of trucking companies.
- The recent customs workers’ strike (May 12-15) has created a massive backlog of thousands of containers, potentially costing the port $150 million in lost revenue.
- Port of Manzanillo handles 45% of Mexico’s ocean carrier containers with 4,000 daily truck movements, making this crisis a significant threat to the nation’s supply chain.
- Industry leaders are urgently calling for government intervention to establish a crisis management team as normalization could take up to five weeks.
Crisis Deepens at Mexico’s Primary Trade Gateway
The Port of Manzanillo, Mexico’s largest maritime trade hub, continues to suffer from severe operational disruptions weeks after a customs workers’ strike officially ended. While the strike lasted only from May 12 to May 15, its aftermath has created a domino effect of logistical failures that threatens to bankrupt trucking companies and disrupt Mexico’s entire supply chain. The port, which handles a staggering 45% of the country’s ocean carrier containers and processes nearly 4 million TEUs (twenty-foot equivalent units) in 2024, is experiencing unprecedented congestion.
“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 brief but impactful strike was triggered by serious allegations of workplace harassment and demands for improved working conditions and additional personnel. Though operations officially resumed on May 21, the port continues to struggle with significant staff shortages, creating a bottleneck effect that has paralyzed normal operations. Industry experts estimate that normalization could take up to five weeks, with some containers facing delays exceeding seven days – an eternity in modern logistics timelines.
Economic Fallout Threatens Transportation Sector
The economic consequences of this ongoing crisis have become increasingly dire for the transportation companies dependent on the port’s operations. Many trucking businesses that service the port are facing imminent financial collapse as their vehicles and drivers remain idle in seemingly endless lines or are unable to secure cargo. The 4,000 daily truck movements that typically characterize the port’s operations have slowed to a crawl, creating a financial stranglehold on an industry that operates on thin margins.
“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 human toll of this crisis has become increasingly apparent as truck drivers suffer from deteriorating conditions while waiting for days to complete what should be routine operations. Health emergencies have become commonplace among drivers trapped in their vehicles during extended wait times, adding a humanitarian dimension to what was initially just a logistical problem. This situation highlights the lack of basic facilities and support systems for essential workers who keep Mexico’s economy moving.
Calls for Government Intervention Grow Louder
As the situation deteriorates, industry leaders have intensified their calls for immediate federal government intervention. Miguel Angel Martinez, president of Canacar (National Chamber of Freight Transport), has formally requested the establishment of a crisis management team to coordinate efforts to resolve the bottlenecks and restore normal operations. The financial impact of this crisis extends beyond the transportation sector, with estimates suggesting the port could lose approximately $150 million in revenue due to the disruptions.
“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..
Despite the urgency of the situation, the federal government has yet to respond to these requests for assistance. This lack of action raises concerns about the government’s commitment to supporting critical infrastructure and protecting the livelihoods of workers in essential industries. The Port of Manzanillo’s vital role as an international trade gateway makes this crisis not just a local or regional issue, but one with potential national economic implications that demand swift and decisive action from Mexico’s leadership.
