Road Blockades, Strikes Are Costing Transporters Millions

The frequent blockades, takeovers, and strikes on Mexico's main highways are costing the country millions of dollars daily. In 2023, the road transport sector accounted for 3.78% of the country's GDP, but these disruptions continue to pose significant risks to investments and economic stability.

According to Mordor Intelligence, Mexico's road transport accounts for more than 85% of the country's total freight transport, involving the import, export, and domestic distribution of products to their destinations. 

INEGI’s 2024 National Census of Federal Public Security indicates that the National Guard reported 103 toll booth takeovers and 813 blockades on federal highways and bridges in 2023. These figures represent a decrease of 34.8% and 7.6%, respectively, compared to 2022. Sonora and Oaxaca were hotspots, with 41.7% of toll booth takeovers recorded, while Chiapas and Oaxaca accounted for 45.4% of highway and bridge blockades.

In 2022, the National Guard reported 158 toll booth takeovers and 880 blockades, marking a significant drop of 93.3% and 43.2% from 2021. In that year, Oaxaca and Sonora saw the highest concentration of such disruptions. In 2021, the situation was even more severe, with the National Guard reporting 2,351 toll booth takeovers and 1,548 road blockades, most notably in Sonora, which alone accounted for 1,692 takeovers and 649 blockades.

“The growing number of blockades is a concern. If the government addresses this and ensures blockades are shorter, it will help people. Another very important point is transportation theft, which is difficult to tackle because it involves local, federal, and state authorities," David Martínez, General Director, #SoyLogístico Association, tells MBN.

The Mexican Association of Cargo Transport (CANACAR) warns that these blockades have a severe economic cost. For example, the recent blockade by landowners from Hidalgo, Tlaxcala, Puebla, and the State of Mexico on the Arco-Norte highway at kilometer 148 resulted in an estimated economic impact of US$530.6 million for transport companies, according to La Jornada. 

CANACAR highlights that these disruptions have deep repercussions to the transportation industry, including:

1. Delays in Product Deliveries: The blockades have caused significant delays in the delivery of essential goods, disrupting supply chains and affecting product availability in local and regional markets.

2. Increased Operational Costs: Transport companies have been forced to take alternative routes, leading to substantial increases in operational costs, including fuel consumption and vehicle wear and tear.

3. Production Disruptions: Several industries reliant on road-transported supplies have reported reduced production capacity, potentially leading to significant economic losses and job impacts.

4. Impact on Individuals:

   • Access to Basic Services: Blockades have made it difficult for citizens to access medical, educational, and other essential services, endangering their health and well-being.

   • Increased Travel Time: Mandatory detours have extended travel times for workers and students, reducing productivity and quality of life.

   • Stress and Anxiety: The uncertainty caused by these blockades has heightened stress and anxiety among the population, exacerbating social unrest.

These disruptions heavily affect the food industry, for example, especially the transportation of perishables or other products that depend on the cold chain. "Having trucks halted due to customs system failures or roadblocks in protest against insecurity generates cost overruns of up to 20% of the freight,” says Francisco Jaraleño, President, Mexican Meat Council (Comecarne). 

The Employers' Confederation of the Mexican Republic (COPARMEX) warns that the recurrence of these blockades, besides affecting thousands of people, has long-term effects on investor confidence and the country’s competitiveness. Legal security and respect for the rule of law are essential for Mexico's economic and social development, says the association.

COPARMEX is urging authorities to find a fair and swift resolution that considers the legitimate demands of protesters without compromising the well-being of the broader community. It also calls for preventive measures and effective response protocols to immediately address future demands, preventing further escalation and continued disruption of the nation’s economic and social stability.

At the same time, the National Chamber of Commerce, Services, and Tourism (CONCANACO SERVYTUR MEXICO) stresses the urgency for authorities to prevent highways and roadways from being seized by criminal groups or political protesters. The association says that the daily economic losses caused by these blockades are unsustainable, and immediate action is required to protect the country’s economic future.