By Alicia Liu    Photo : Roman Lopez

Mexico's logistics industry is going through a critical moment. Not only is there a high rate of theft in cargo transportation, but it also extends to extortion and the payment of "Baja IVA" for foreign trade goods. Facing the wave of nearshoring, various public associations have also pointed out challenges in infrastructure, training, rule of law, and digitalization.

Nashielly Escobedo, General Manager of the Latin American Customs Agents Association (CLAA), explained that the logistics industry is facing a complex environment in terms of customs clearance, with processes vulnerable to loopholes that affect the entire logistics chain. These include threats, extortion, and forced entry of goods under the guise of ownership, which are issues that authorities urgently need to address. While customs officers are committed to safeguarding the security of goods in the supply chain to ensure they are not tainted by money laundering, drug trafficking, illegal substances, or organized crime, these efforts must be carried out in collaboration with the authorities. She also emphasized that in addition to focusing on security issues, there is a need for greater legal certainty in the enforcement of customs law, as customs often apply different standards, which delays the clearance of goods.

Furthermore, Claudia Sánchez Porras, General Manager of the National Freight Carriers Association (Canacar), stated that land freight is another sector affected by insecurity. Land freight is responsible for transporting 56.8% of Mexico's goods and contributes 3.5% to the GDP. She also pointed out that from January to August 2023, there were an average of 45 transportation accidents or incidents per day, not including unreported and undocumented events. Unfortunately, not only is the number of cases increasing, but criminal behavior is also worsening. The most common occurrence is cargo theft; operators and drivers are now losing their lives, and equipment or goods are being destroyed.

Regarding infrastructure issues, a recent study showed that 30% of roads in Mexico are in poor condition. Although there are 15 main highways totaling 19,000 kilometers, the 407,000-kilometer road network nationwide requires modernization to reduce logistics costs. Mexico is facing the wave of nearshoring, and to remain competitive, it needs more efficient and secure roads.

Leonardo Gómez, Executive Chairman of the National Private Transport Association (ANTP), also believes freight transportation faces serious security issues. Cases have increased by 10.3% this year, with 8,523 cases being investigated in various jurisdictions, with 52% concentrated in Puebla and the State of Mexico. The most severely affected sectors are food, groceries, and construction.

The association has also highlighted the necessity of maintaining the rule of law in the transportation sector, as regulations enacted by different states and municipalities vary. The transportation process requires transit, loading, and unloading, as well as permits, with loading and unloading fees ranging from 1,000 to 3,000 Mexican pesos. Unfortunately, excessive regulation increases costs, ultimately passed on to consumers.

Regarding railway transportation, Iker de Luisa, General Manager of the Mexican Railway Association (AMF), also emphasized the need to formulate a national infrastructure plan, list key projects, and involve more private sectors in investment to develop more diversified intermodal transportation options.

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