Container Traffic Surges Amid Overall Cargo Decline

The General Coordination of Ports and Merchant Marine (CGPMM) reports a slight decrease in port cargo traffic between January and April 2024, compared to the same period in 2023. However, the volume of container traffic showed significant growth during the same period, especially cargo involving Chinese imports.

Mexican ports handled 90.86 million t of cargo between January and April 2024, marking a 2.9% decrease compared to the same period in 2023, reports CGPMM. On the other hand, ports handled 2.95 million twenty-foot equivalent units (TEU) between January and April 2024, an 18.2% rise from the same period in 2023. This surge includes both international and coastal traffic, with coastal traffic alone witnessing a 4,033.3% increase to 14,880 TEUs. In contrast, oil and derivatives, traditionally the most heavily transported cargo type through Mexican ports, saw a 6.9% reduction in volume compared to the first four months of the previous year. 

The Port of Manzanillo continues to lead in cargo handling with a 14.5% increase. It is followed by the Port of Lazaro Cardenas, which saw a 34.9% rise, the Port of Veracruz with a 20.9% increase, and the Port of Altamira with a 7.5% increase. 

According to Mordor Intelligence, the Mexican government’s focus on enhancing port infrastructure is expected to further boost demand for maritime transportation. The report adds that the cost of shipping a 40ft container from Asia to Mexico surged by 29.43% from May to July 2023, reaching US$2,110. An anticipated weekly movement of 100,000 TEUs in 2024 reflects a robust domestic market and increased international trade.

José Antonio Contreras, CEO, Contecon Manzanillo, tells T21 that trade between Mexico and Asia has grown exponentially. He adds that this dynamism has led to an increase in ship sizes arriving at Mexican ports. Four years ago, only 10% of ships arriving in Manzanillo were over 350m long. As of 2024, nearly 50% of the vessels are between 350m and 400m, says Contreras. He adds that this trend is expected to accelerate, indicating the increasing scale of maritime operations in the region.

Container shipping imports from China into Mexico have grown significantly, reports ocean and air freight analytics platform Xeneta. January 2024 saw a 60% increase in imports from China compared to January 2023, positioning this trade route as one of the strongest globally. Xeneta adds that experts suggest this trend may be a strategy to bypass tariffs imposed on direct imports from China to the United States amid ongoing trade tensions.

“In a purely hypothetical scenario, if this growth rate continues, by the year 2031 there will be more containers imported from China into Mexico than the US West Coast. That demonstrates just how rapid the increasing rate of demand for ocean freight shipping has been. Only last year Mexico City opened a new cargo-only airport, which is another sign that imports are scaling up. I doubt this is happening due to increased demand in Mexico only, but more likely because it is a backdoor into the United States,” says Peter Sand, Chief Analyst, Xeneta.

The shifting dynamics also impact shipping rates. In April 2023, long-term ocean freight rates from China to Mexico's West Coast fell below those to the US West Coast. By March 2024, rates nearly equalized, reflecting an unpredictable trade environment.