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The Looming Threat to US-Mexico Supply Chains

August 30, 2023

In a bold move that could have far-reaching implications for supply chains connecting the United States and Mexico, truckers in Mexico are gearing up to stage a nationwide protest and disrupt critical trade routes. Fueled by mounting concerns over security issues on Mexican highways, the Mexican Alliance of Carrier Organizations (AMOTAC) is spearheading this movement, demanding urgent attention from both the government and the public. As tensions rise, the potential disruption of supply chains hangs in the balance.

Nationwide Disruption Looms

The AMOTAC’s announcement of a nation-wide protest and highway blockades has sent shockwaves through Mexico’s logistics sector. With plans to mobilize in all 32 states of Mexico, the truckers’ protest could grind highway traffic to a halt, causing ripples across the intricate web of supply chains that connect Mexico and the United States. Their aim? To bring to the forefront the pressing security concerns that drivers face daily on Mexico’s perilous highways (FreightCaviar).

Demanding Attention from the Government

In an unprecedented move, the AMOTAC plans to gather truckers in front of the residence of Mexico’s President, Andres Manuel Lopez Obrador, in a bid to draw federal attention to their plight. The truckers assert that despite the grave risks they face, the response from authorities, including the National Guard, has been inadequate. A prepared document from the AMOTAC powerfully states, “every day we suffer assaults, robberies and murders… and yet the commanders of the National Guard don’t take the steps necessary to stop this situation.”

Alarming Statistics and Negotiations

The truckers’ concerns are grounded in troubling statistics. Truck hijackings have surged in both 2022 and 2023, as reported by Mexico’s federal government. In response, AMOTAC representatives have engaged with key stakeholders, including the National Guard, the Secretary of the Interior, and authorities from hotspots like Mexico State, Veracruz, and Puebla – all areas particularly vulnerable to cargo truck hijacking. While the AMOTAC has temporarily postponed their national protest for three months, the specter of disruption in early 2024 remains unless highway security improves swiftly.

Cargo Hijackings on the Rise

A recent Q&A in Business News Americas delves into the escalating crisis. During the first half of 2023, Puebla state witnessed a staggering 70% increase in cargo hijackings. The outskirts of Mexico City have become notorious hotspots for these incidents. The statistics are bleak: Mexico recorded 4,127 cargo truck hijackings in the first half of 2023, marking an 11% surge from the same period in 2022. Last year, the tally reached 7,644 incidents. With the current trajectory, 2023 might witness over 8,200 violent cargo truck hijackings.

Supply Chain Vulnerabilities Exposed

The escalating security threats hold dire implications for supply chains. In today’s just-in-time manufacturing landscape, any disruption can snowball into catastrophic delays and financial losses. The risk of cargo hijackings is predicted to rise further, necessitating businesses to adopt robust risk-management strategies to safeguard their operations from potential disruptions.

 

The potential disruption to US-Mexico supply chains due to the truckers’ nationwide protest highlights the urgent need for enhanced security measures on Mexico’s highways. As truckers take a stand against rampant insecurity, the entire logistics sector is at a crossroads, with the specter of disruption looming large. Addressing these security concerns is not just a matter of economic stability, but also of ensuring the safety and well-being of those who traverse the highways daily.