Port Congestion in Mexico Grows Amid Asian Imports

The surge in vehicle arrivals, primarily from Asia, has led to persistent port congestion in Mexico since mid-2022, a trend that continued into 2023 and is expected to exacerbate in 2024. The ongoing issue has resulted in doubled processing times, costing millions.

Data from the Ministry of Navy (SEMAR) shows a 23.7% increase in maritime vehicle shipments, totaling 2.3 million units in 2023, compared to the previous year's 1.86 million.

Esther Lira, General Manager, SSA México's Tuxpa, emphasizes the critical situation, with Veracruz receiving the bulk of 933,000 imported vehicles, closely followed by Lázaro Cárdenas with 699,000 units. Lira highlights the challenges, including difficulty in providing services due to congestion, limited shipping options, and inadequate storage capacity, particularly between March and September 2023.

Gerome Carson, General Manager, SSA México's Specialized Automobile Terminal in Lazaro Cardenas, echoes concern over the two-year struggle with saturation. He notes a significant increase in import and export duration, doubling from an average of 8 to 15-16 days, impacting operational capacity. Carson outlines critical issues such as carrier shortages, operator limitations, and inadequate rail equipment to handle the rising vehicle volume, emphasizing the situation's onset since August 2022.

To address these challenges, SSA plans to invest US$5 million in 2024 to enhance terminal capacity, acquire necessary equipment, and train personnel. Carson emphasizes a notable shift in approach by automakers, securing external yards to store vehicles while ports reduced reception norms to 2,000-unit instead of the previous 3,000-5,000volumes, preventing extended ship anchoring.