NEWS

"In the first five months of this year, goods imported from China to Mexico increased by 60% year-on-year. The surge in freight volume has put significant pressure on the transportation link and commodity costs. Mexican shipping experts further predicted: 'Looking to the next year, Freight charges may see a substantial increase' ”

1. China-Mexico maritime trade surges

In the first five months of this year, goods imported from China to Mexico increased by 60% year-on-year. The surge in freight volume has put significant pressure on transportation links and commodity costs.

According to insiders in the Mexican maritime logistics industry, the increase in cargo imports is mainly due to trade tensions, which has led China to use Mexico as a transit point to the United States. At the same time, the ongoing instability in the Middle East has forced many airlines to choose more circuitous routes, further exacerbating the logistics burden.

 

Data show that during the first five months of 2023, the number of standard 20-foot containers shipped from China to Mexico each month has climbed from approximately 73,000 to 117,000, an increase of nearly 60%. What followed was a sharp rise in shipping costs, which soared from about US$2,000 per TEU at the beginning of the year to the current high of more than US$5,000.

 

The rise in transport costs is not just due to increased trade volumes. A senior expert in the Mexican logistics industry pointed out that due to the activities of the Houthi armed forces in the Middle East, many ships that originally planned to cross the Red Sea and the Suez Canal were rerouted around the Cape of Good Hope at the southern tip of Africa for safety reasons. This move undoubtedly lengthened the voyage, with an average of Added 10 to 15 days to shipping time.

 

As a result, containers originally used for China-Europe routes are in short supply in the market due to extended turnover cycles, which in turn affects the stability of the supply chain for high-demand routes from China to the United States and Mexico, creating a chain reaction and exacerbating the rise in logistics costs. trend.

 

2. Freight rates on China-Mexico routes may rise sharply

The senior person said: "China is increasingly becoming an indispensable link in the global economic chain. When talking about the 'near-shoring' trend of industrial layout, an obvious impact is that many Chinese companies are gradually extending their supply chains. "To Mexico. But this will not happen overnight," he further predicted: "Looking ahead to the next year, freight rates may increase significantly, and shipping costs in Mexico may even reach twice the global average." "

 

The EAX index compiled by Mexico's Eternity Group Logistics Company believes that the recent increase in China's shipping costs is essentially a direct response to the market's strong transportation demand. According to statistics, the freight rate for 40-foot containers (FEU) shown by the EAX index at the end of April has reached US$3,959. This price has not appeared since September 2022, marking a significant increase in freight levels.

 

The company also warned: "The recent saturation conditions and a series of challenges faced by the port of departure are difficult to alleviate in a short time, indicating that at least in May, the pressure to increase freight rates will continue to exist. In view of the violent market fluctuations, the freight rate per FEU during May It is reasonable to fluctuate between $5,500 and $6,500.”

 

3. Pacific coast ports face severe challenges

With monthly container imports from China to Mexico recording a staggering 60% increase, key ports on Mexico’s Pacific coast, such as Manzanillo and Lázaro Cárdenas, are witnessing unprecedented throughput records, which is a powerful This has promoted the increase in the total trade volume between the two countries. However, behind this prosperity also lies a major test of logistics capabilities.

 

Local logistics experts in Mexico pointed out: "The current situation in the Pacific coast ports is extremely tense. The growth rate in the first quarter exceeded everyone's expectations and put great pressure on the infrastructure. The issue of port carrying capacity is essentially a government planning issue and requires Elevate port construction to the national strategic level and make long-term investments instead of short-sighted six-year plans. The improvement of port infrastructure should focus on the development blueprint for the next thirty years. "

 

In the face of challenges, the Mexican logistics community strongly calls for the strengthening of land transportation connectivity in order to make full use of existing maritime gateways. This covers the comprehensive upgrade and investment of roads, customs, railway systems, and logistics information technology. This is also confirmed by Mexican official data. According to the General Coordination of Mexican Ports and Merchant Marine (CGPMM), Mexican ports handled a total of 2,952,195 TEUs from January to April this year, which is equivalent to 2,496,977 TEUs in the same period last year. Compared to last year, it increased by 18.2%.

 

What is particularly prominent is that on the Pacific coast, the container handling volume of the three major ports of Manzanillo, Lázaro Cárdenas and Ensenada accounts for 73% of the total throughput of the coastline, with a total volume of 2,118,178 TEUs. , highlighting the critical role of these ports in the global trade network and the severe challenges they face.