WORLD NEWS: Customs Strike PARALYZES Top Trade Hub

Mexico’s largest port faces potential $150 million in losses as customs workers’ strike and staff shortages cripple operations, pushing trucking companies to the brink of bankruptcy.

Key Takeaways

• The Port of Manzanillo, handling 45% of Mexico’s ocean carrier containers, is experiencing severe operational delays with customs inspections taking over 72 hours per unit.
• A customs workers’ strike from May 12-15 over workplace harassment and poor conditions has created a massive backlog of thousands of containers.
• Trucking companies are facing financial ruin as the crisis continues, with many defaulting on payments to leasing companies, insurance providers, and staff.
• Industry leaders are urgently calling for federal government intervention to resolve the crisis, which could take up to five weeks to normalize.
• The economic impact could reach $150 million in lost revenue for Mexico’s most crucial trade gateway.

Critical Port Operations Paralyzed by Strike and Staffing Crisis

Mexico’s Port of Manzanillo, the nation’s largest maritime trade hub responsible for processing 45% of the country’s ocean carrier containers, continues to struggle with crippling operational delays weeks after a customs workers’ strike officially ended. The work stoppage, which occurred from May 12 to May 15, was triggered by serious allegations of workplace harassment and demands for improved working conditions and additional personnel. Despite resuming operations on May 21, the port remains mired in chaos as thousands of containers face processing delays exceeding seven days.

“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 magnitude of the crisis becomes apparent when considering the port’s typical daily operations. Under normal circumstances, Manzanillo handles approximately 4,000 truck movements each day and processed nearly 4 million Twenty-foot Equivalent Units (TEUs) in 2024. The current operational breakdown has created a massive backlog that industry experts estimate could take up to five weeks to resolve completely, resulting in potential losses of $150 million in revenue for this critical trade gateway.

Trucking Industry Faces Financial Collapse

The paralysis at Manzanillo has created a devastating financial ripple effect throughout Mexico’s transportation sector. Trucking companies, which serve as the vital link between the port and the broader supply chain, are experiencing unprecedented financial strain as their vehicles and drivers remain idle or trapped in endless waiting lines. The financial impact has become so severe that many transport companies are now teetering on the edge of insolvency, unable to meet their basic financial obligations.

“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 is equally concerning. Truck drivers caught in the chaos face not just economic hardship but physical suffering as well. Extended wait times in harsh conditions have created a dangerous situation for these essential workers, many of whom lack access to basic facilities while stranded at the port. This humanitarian aspect of the crisis underscores the urgent need for comprehensive intervention beyond just addressing the logistical bottlenecks.

“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.

Calls for Federal Intervention Grow as Crisis Deepens

As the situation at Manzanillo deteriorates, industry leaders are intensifying their calls for immediate federal government intervention. Miguel Angel Martinez, president of Canacar, the national chamber of freight transportation, has publicly requested that President Trump’s administration establish a dedicated task force to address the crisis. The proposed task force would coordinate efforts to clear the backlog, address staff shortages, and implement measures to prevent similar breakdowns in the future at this strategically important trade hub.

Despite the escalating crisis and its significant implications for Mexico’s economy, the federal government has yet to respond to these urgent appeals for assistance. The continued inaction raises concerns about potential long-term damage to Mexico’s trading capabilities and international reputation as a reliable business partner. With each passing day, the economic consequences multiply, affecting not just the port and transportation sectors but rippling throughout Mexico’s manufacturing and retail industries that depend on timely imports and exports.

The Manzanillo crisis serves as a stark reminder of the fragility of global supply chains and the critical importance of maintaining functional port operations. As one of Mexico’s most vital economic arteries, the continued disruption at Manzanillo threatens to undermine national economic stability at a time when strong trade performance is essential for growth. Industry observers now watch anxiously to see if government intervention will materialize before the financial damage becomes irreversible for many of the affected businesses.