Supply Chain Challenges, Opportunities: The Week in Logistics

Amid uncertainty and concerns regarding the "Complemento Carta Porte," Mexico’s Treasury (SAT) extended the grace period for its mandatory implementation to Jan. 1, 2024. The Ministry of Infrastructure Communications and Transport (SICT) also extended the deadline for cargo airlines to migrate from Mexico City International Airport (AICM) to Felipe Ángeles International Airport (AIFA). Meanwhile, highway insecurity continues affecting the trucking industry. Moreover, Mexico's major ports present delays and congestion, affecting many sectors including the automotive industry.

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SAT Extends Deadline for CCP Implementation Amid Challenges

As a result of the demands, the SAT decided to extend the grace period for the mandatory implementation to Jan. 1, 2024. According to CANACAR's data, 85% of merchandise carriers are small and medium-sized taxpayers that still struggle to comply with the CPP due to a lack of necessary means (infrastructure, human resources, technology and money). The question remains whether Jan. 1, 2024, will be enough time for carriers to be ready to comply.

Airlines Gain Relief: AIFA Transition Deadline Extended

Another deadline has been extended. SICT moved the deadline for cargo airlines to move their operations from the AICM to AIFA to Sept. 1. This move aims to allow stakeholders to meet all requirements while upholding the highest safety and service standards.

Rising Theft Rates: Insecurity Threatens Mexico's Trucking Sector

The trucking sector moved 56.2% of the total domestic cargo and contributed 3.4% of Mexico's GDP in 2021. However, insecurity is rising, with truck theft in highways increasing by 11.52% in January-May 2023 compared to the same months in 2022. The main hotspots are the State of Mexico, Jalisco, Michoacan, Puebla and San Luis Potosi.

Stuck in Traffic: Port Delays Disrupt Mexico's Automotive Sector

There is an overwhelming boom in demand for Asian cars. But meeting this demand is complex due to port congestion at Mexico’s main ports: Manzanillo, Lazaro Cardenas and Altamira. This puts nearshoring in the country at risk, potentially forcing Asian companies to explore alternative gateways.

Mexico's 3PL Market Builds Momentum

A recent projection made by Mordor Intelligence shows that Mexico's third-party logistics (3PLs) market is expected to grow at least 38.6% in the next five years, with a compound annual growth rate of 6.75%. The country could maintain its upward trend with the involvement of the 3PL sector in other industries and offering various services related to supply chain management.