The logistics problem faced worldwide continues to grow since there have been many months of uncertainty in which rates have increased to make the entire logistics chain more expensive. Maritime transport is one of the most affected since the increase of some routes is above 700% compared to usual.
Some of the causes are as follows:
- Operational lack of control during the pandemic.
- Lack of exports going to China.
- Lack of empty equipment in China to load merchandise.
- Saturation on over-saturated routes and vessels.
- Specifically Mexican Chinese ports are saturated with operations.
Currently, the continuous problem and industrial sectors in our country have suffered from the increase in cost of their operations and loss of competitiveness with their main clients.
The main affected states are Jalisco, Guanajuato, Queretaro, etc., States in which their suppliers largely come from that country for their intermediate products for the manufacture of the final product. The current situation leaves local companies out of the market and particularly affects small and medium-sized companies (SMEs). Routes from China have become more than 700% more expensive as reported by The Economist.
In addition to such high rates, companies also have the problem of weekly or even daily changes of the rates already agreed, so it is difficult to have an exact cost in maritime operations from China and Asian routes in general.
Previously, the rates ranged from 1800 usd to 3000 usd, currently they are above 10,000 usd. In the same way, in the oversized equipment, the costs are above 40 thousand usd for FLAT RACK equipment. Costs that Mexican companies have to absorb and that make their final product that they sell to their customers completely more expensive.
The problem stems from Mexico’s dependence on products from China since it is one of its main suppliers. In the past two decades, between 2000 and 2019, China’s imports increased 30 times. In 2021, imports from that country to Mexico increased 58.5% despite the increase in tariffs Customs figures show the main products that grew, mining shipments totaled US $ 10,841.7 million, with a growth of 50.6%. The purchases of televisions grew 172.3% and that of computers 134.3%.
The reality is that rates will not drop in the remainder of 2021, on the contrary, they will continue to increase, reducing costs should be a priority through other concepts in the supply chain, such as land trawling from port to final destination. , optimize customs costs by avoiding errors and fines. Similarly, the search for new suppliers from other origins is another option that previously seemed impossible but that today it is likely that due to the excess of maritime costs, they allow other countries to be competitive in their products to offer.