Mexican trucking companies face imminent bankruptcy as the Port of Manzanillo remains crippled by massive backlogs, with customs inspections taking over 72 hours while drivers suffer in the heat without basic sanitation.
Key Takeaways
- Mexico’s largest port, Manzanillo, which handles 45% of the country’s ocean carrier containers, is experiencing severe operational disruptions even after a customs workers’ strike ended May 15.
- The port crisis may cost an estimated $150 million in lost revenue, with industry experts predicting full normalization could take up to five weeks.
- Trucking companies are “on the brink of bankruptcy” according to industry leaders, with thousands of containers facing delays exceeding seven days.
- Despite handling approximately 4,000 truck movements daily and processing nearly 4 million TEUs in 2024, the port remains understaffed after resuming operations on May 21.
- Industry representatives are urgently calling for government intervention through a crisis committee, but the federal government has yet to respond.
Operational Standstill Threatens Mexico’s Critical Trade Gateway
The Port of Manzanillo, Mexico’s largest maritime trading hub responsible for nearly half of the country’s ocean carrier container traffic, finds itself in an unprecedented logistical nightmare. Despite officially resuming operations on May 21 following a three-day customs workers’ strike, the port remains effectively paralyzed. The strike, which ran from May 12 to May 15, was triggered by accusations of workplace harassment and demands for improved working conditions and additional personnel. The aftermath has created a cascading crisis for Mexico’s supply chain and the businesses that depend on it.
“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 Mexico’s National Chamber of Freight Transport (Canacar).
Economic Impact Ripples Through Supply Chain
The financial toll on Mexico’s economy is mounting rapidly. Industry analysts estimate the strike and subsequent operational delays could cost the port approximately $150 million in lost revenue. More alarmingly, the disruption threatens the viability of numerous trucking companies that serve as the critical last mile for goods entering the country. These companies, already operating on thin margins, now face an existential crisis as their trucks and drivers remain idle for days at port terminals.
“[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,” warned Miguel Angel Martinez, president of Canacar.
The port, which processed nearly 4 million twenty-foot equivalent units (TEUs) in 2024 and typically manages about 4,000 truck movements daily, has become a bottleneck in Mexico’s supply chain. Containers that should move through the port in a matter of hours are now facing delays exceeding seven days. Even with operations technically resumed, the severe staff shortages have created a situation where normalization could take up to five weeks, according to industry experts.
Human Toll Mounts as Drivers Wait Without Basic Services
Beyond the financial impact, the human cost of this crisis is becoming increasingly apparent. Truck drivers, the unsung heroes of the supply chain, are enduring deplorable conditions as they wait for days on end for their cargo to clear customs. Without adequate facilities or support systems in place, these essential workers are experiencing significant health issues due to prolonged exposure to harsh conditions with minimal access to basic necessities.
“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,” reported Ernesto Hernandez Jr., highlighting the dangerous conditions facing transportation workers.
Canacar has formally requested the federal government establish an emergency crisis committee to address the situation immediately. The proposed committee would develop and implement solutions to restore efficient port operations and prevent similar crises in the future. Despite the urgency of the situation and its potential impact on Mexico’s economy, the federal government has yet to respond to these requests, leaving industry leaders frustrated and increasingly desperate for intervention.
Strategic Importance Beyond Mexican Borders
The Port of Manzanillo’s significance extends far beyond Mexico’s borders. As a key gateway for international trade, particularly with Asian markets, disruptions at this port have far-reaching implications for global supply chains. The current crisis exemplifies the vulnerability of international trade networks to localized labor disputes and infrastructure challenges. With the port handling nearly half of Mexico’s ocean carrier containers, any extended disruption threatens to impact product availability and prices for consumers across North America.
As the situation continues to deteriorate, industry stakeholders are increasingly vocal about the need for structural reforms in port operations and customs procedures. Without immediate action and long-term solutions, the Port of Manzanillo risks losing its competitive position as shippers consider alternative routes to move their goods, potentially creating permanent shifts in trade patterns that could have lasting negative effects on Mexico’s economy and its position in global trade networks.
