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Mexico’s Energy Reform: How to Keep the Supply Chain Moving Amid Protests

Mexico’s Energy Reform: How to Keep the Supply Chain Moving Amid Protests | Transportfolio

mexico-energy-reform

Due to the Mexico government’s recent deregulation and energy reforms that kicked off 2017, the country is currently experiencing intense protests and disruptions along many major federal highways throughout Mexico. The energy reforms remove government subsidies from the oil and gas industry producing prices based on the free market. Eventually prices will likely stabilize but not until after a period of volatility due to the new changes.

As a direct response to gasoline fuel costs rising between 14% and 20% depending on type and grade, the energy reform protests have led to temporary closures along multiple inter-Mexico and cross-border freeways. Expect both travel and trade delays across the country. Currently, there are more than 16 Mexico states and multiple highways affected by the protests, including:

  • México-Toluca
  • La Lecheria-Texcoco
  • Naucalpan-Toluca.
  • Hidalgo section ixmiquilpan-pachuca
  • Protests are reported at km 177 Ctra. 2750 Tuxtla Gutiérrez-Cd. Cuauhtémoc,
    section Comitán-Trinitaria
  • Reported protests at tollbooth at Km 116+400 Ctra. 1130 Jiménez-Delicias, same section Chihuahua.
  • Partial blockade and slow circulation at km 169+500 Ctra. 02 Cd. Juárez-Janos, section Santa Teresa-Ascención
  • Reported blockade at tollbooth at Cuauhtémoc Km 068 Ctra. 16 Chihuahua-Madera, section Santa Isabel-Cuauhtémoc
  • Partial blockade and slow circulation at km 206 Carretera 45 Delicias-Chihuahua, section Lázaro Cárdenas-Chihuahua

Several state and national organizations including the Mexican Alliance of Transportation Organizations (AMOTAC) are supporting the nationwide protests. We anticipate that the energy reform demonstrations will continue in waves. Conditions could potentially deteriorate even further before improving. Consequently, these protests could also affect rail and ocean ports of entry.

We recommend calculating additional transit time for your freight in Mexico and utilizing all modes of transportation as much as possible to mitigate disruptions in your supply chain.

Due to the nature of the demonstrations, the situation is likely to change rapidly. Stay up to date by visiting national news sites and proactively communicating changes to your customers as events unfold. Here are some noteworthy news sites that can help you stay informed: OilPrice.comBusiness Insider, and Milenio.com.

Should you have any further questions about Mexico’s energy reform, please reach out to your C.H. Robinson service representative, or connect with an expert.

Check out this recent article from our interview with Supply Chain Dive for more information on this topic.

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