Mexico's largest port struggles with delays and container backlogs

After a strike by customs officers, the Port of Manzanillo (Mexico) is facing severe congestion, threatening the stability of the supply chain and putting shipping businesses in trouble.

Manzanillo-port

Mexico's Port of Manzanillo (Photo: America Economia)

Long delays and staff shortages are still affecting operations at Mexico's Port of Manzanillo, about a week after the port resumed operations following a strike by customs officers.

Miguel Angel Martinez, president of Mexico’s National Chamber of Freight Transport (Canacar), said some transporters are facing bankruptcy due to the operational crisis at the Manzanillo’s customs department.

The strike at the Port of Manzanillo, which ran from May 12 to May 15, included allegations of workplace harassment, along with demands for improved working conditions, additional staffing and extended customs hours.

The Port of Manzanillo, located on Mexico's Pacific Coast, resumed full operations on May 21, according to the Mexican Navy, which is responsible for clearing cargo at all ports and border crossings.

Mr. Martinez posted on social media X on Saturday: "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,"

In addition to his role as president of Canacar, Martinez is also CEO of Grupo Marva, a transport company that owns 1,600 trucks and 13 warehouses across Mexico, including a facility at the Port of Manzanillo.

[Trucking companies are] on the brink of bankruptcy, as a result of these days of paralysis,” Martinez said. “We’ve already defaulted on payments to leasing companies, insurance companies, suppliers, and even our staff.”

The Western Mexican Export Processing and Manufacturing Industries Association said the strike and delays could cost the Port of Manzanillo $150 million in lost revenue, and it could take up to five weeks for operations to return to normal, according to El Economista.

The Port of Manzanillo is the country’s largest port and one of Mexico’s main gateways for international trade, handling about 45% of container traffic from shipping lines. The port handles about 4,000 truck movements a day and is expected to clear nearly 4 million 20-foot equivalent units (TEUs) in 2024.

Some containers are being delayed for more than seven days at the Port of Manzanillo, said Ernesto Hernandez Jr., a customs broker in Brownsville, Texas.

“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,” Hernandez posted on LinkedIn on Thursday.

Martinez called on the federal government to find a solution immediately.

“The impact is not minor: the economic losses are in the multimillions and are directly impacting the efficiency of supply chains throughout the country, with severe consequences for industry, commerce, and the end consumer,” Mr. Martinez stressed. “We strongly and firmly call on federal, customs, port, and state authorities to immediately establish a crisis committee and implement immediate, effective, and coordinated solutions to restore logistics flow in Manzanillo.”

The Mexican federal government has yet to officially respond to Canacar’s request.

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