Mexico’s port infrastructure is currently facing one of its most significant challenges in recent memory. Congestion at major maritime hubs such as Manzanillo and Veracruz has reached critical levels, causing widespread disruption across national and international supply chains. These delays are not only increasing operational costs for businesses but are also exposing deep-rooted issues within Mexico’s port management and infrastructure systems. 

As of October 2024, dwell times for cargo at Manzanillo, one of Mexico’s busiest ports, has surged from an average of 48 hours to 168 hours. This spike has left vessels stranded at sea and cargo operations stalled on land. The port of Veracruz has also experienced similar gridlocks. As a senior executive at the Secretariat of Citizen Security noted, “Processing now takes more than twice as long as it did previously, causing frustration among importers.” These delays have disrupted delivery timelines, with “complaints about losses due to missed delivery deadlines to end recipients” becoming increasingly common. 

“Processing now takes more than twice as long as it did previously, causing frustration among importers.”

Senior executive at the Secretariat of Citizen Security, Mexico

The reasons behind this crisis are multifaceted. On one hand, there is a surge in import volumes, especially from Asia, which has strained the system. On the other, operational inefficiencies, outdated equipment and insufficient inland transport networks have compounded the issue. However, one of the primary and more immediate causes stems from changes in customs inspection processes. A port operations manager explained, “The primary reason is the tightening of customs inspections, driven by the need to maintain stricter control over imports from Asia, particularly China.”  

These heightened inspections are part of a broader governmental effort to strengthen port security and tackle criminal activity, including the trafficking of fentanyl precursors. The port manager explained, “Mexican ports have long been targets of criminal activity, with some areas more affected than others.” Authorities have responded by ramping up law enforcement presence and security cooperation at key ports. This has been necessary, given that “both maritime and land transport have been targets of crime for some time and, as a result, businesses have factored in personnel and cargo protection costs,” the manager confirmed. 

“Mexican ports have long been targets of criminal activity.”

Port operations manager, Mexico

The ports’ strategic importance means even small policy changes have outsized impacts. The senior executive emphasised that “due to their strategic nature, ports are always affected by any adjustment - no matter how minor.” For instance, a recent case of fuel theft (known locally as ‘huachicol’) aboard a vessel at the Port of Altamira has further intensified inspections. According to the senior manager, these measures are not just reactive but part of broader efforts “to prevent Mexico from being used as a gateway into the United States for goods attempting to bypass tariff payments.” 

Beyond the customs and security issues, the regulatory complexity has also been a bottleneck. As customs operations fall under federal jurisdiction, “local authorities can only act as a spokesperson for the concerns raised by transport operators,” acknowledged the port operations manager. The result is a system that lacks responsiveness at the local level, further aggravating delays and inefficiencies. 

Notably, while trade volumes have dipped in some areas, this appears to be part of a global slowdown influenced by US trade policies. “There has also been a decline in shipments, although I understand this is part of a global trend driven by concerns over the United States’ tariff policy,” remarked the public safety department senior manager. There is hope that “a return to normal levels is expected once the uncertainty subsides.” 

Despite these challenges, there are positive signs that the crisis has prompted both governmental and private sector responses. The Mexican government has acknowledged the severity of the situation, announcing major expansions of the ports at Manzanillo and Lázaro Cárdenas. These are part of a broader strategy to modernise port infrastructure, improve operational efficiency and boost capacity. Notably, the expansion of Manzanillo, expected to be completed by 2030 at a cost of USD 3 billion, will double its container capacity making it the largest container port in Latin America. 

At the same time, the private sector sees opportunity amid the chaos. Global port operator DP World is reportedly in discussions with the Mexican government to establish a major new logistics hub in the country. This could mark a turning point in how Mexico handles maritime trade, provided that coordination and investment keep pace with ambition. 

Meanwhile, customs authorities remain firm. The senior manager stated, “It seems unlikely that these inspections will be relaxed, given the current context and pressure from trade partners.” Yet, the government is attempting to mitigate bottlenecks by enhancing coordination between agencies and streamlining inspection protocols “as swiftly as possible.”  

Nonetheless, without immediate and coordinated action across customs reform, infrastructure upgrades, private investment and crime prevention, Mexico risks prolonged port paralysis with far-reaching consequences for its economy and global trade standing.