Background on the Strike and Its Impact
Last week’s strike at Manzanillo customs could lead to losses of up to $150 million if not resolved this week, warns Guillermo del Río, president of the Mexican Industries Association for Export Manufacturing and Export (INDEX Occidente).
Current Situation
Although customs control was restored on Thursday and transportation that had become stranded started moving again on Friday, normal operations have yet to resume. Del Río Ochoa anticipates it will take two to three weeks to return to the usual pace of operations.
- Significant backlog of undispatched goods
- Ferrocarriles (railways) gradually reactivating, moving bulk cargo
- New appointments not yet scheduled; efforts are underway to expedite normalization
Del Río emphasized the substantial impact on government revenue, logistics providers, port-operating companies, and the export industry as potential line stoppages and order delivery failures may occur this week.
Manzanillo Port Operations Suspension
On May 12, customs operations at the Manzanillo port were halted by striking customs workers demanding better working conditions, additional staff hiring, and extended customs office hours.
Following a federal operation on the previous Thursday, strikers were removed, and customs activities resumed.
Rekindled Interest of Investors in Mexico
In a separate matter, INDEX Occidente’s president mentioned that the uncertainty caused by the United States’ early-year trade strategy led companies to pause their projects and reassess their economic models.
However, he clarified that corporations have started to recognize Mexico’s attractiveness as a business location, leading to renewed discussions and interest in bringing business to the region.
As a result, the export manufacturing and maquiladora industry has resumed its growth projections, aiming for a 10% increase in exports by 2025 and the creation of 9,000 jobs.
