This article is written by Austin Garcia
In 2023, there were a total of 7,862 cargo hijackings in Mexico, with 85% occurring in the states of Mexico, Puebla, and Michoacan. This is a 3% increase from 2022 data, while the United States saw an increase of 58%. To operate safely and profitably in Mexico’s current security state, companies need to have a common operating plan and layer in risk mitigation techniques.
Mexico carriers are not required to carry cargo insurance on behalf of their clients, but brokers, carriers, or 3PL partners should advise clients on this fact. Insurance brokers can provide coverage at reasonable rates, which can be carried on books as logistics costs.
The security protocol our partners operate under is CTPAT (Customs Trade Partnership Against Terrorism) and OEA (Operation Autorizado Economico Autorizado). Carrier companies should have one or both certifications to qualify as a viable partner. Warehouse transfer operations within the border of Mexico should also be qualified. Brokers not having a CTPAT certification within the United States are okay as long as they understand carrier partners must be certified.
A good partner will provide near real-time tracking solutions, such as Samsara’s superior platform operating in Mexico and Rand McNally’s growing international track solutions. The product and method needed for security should be understood from a risk mitigation and loss standpoint. Most hijackings in Mexico are consumable goods, tequila, appliances, and food stuffs, not sub component parts going into cars, electronics, medical devices, and unusable products for the average person.
Cargo security in Mexico, particularly in the nearshoring environment, can be achieved with relative ease by choosing the right partners and asking the right questions.
Here at TradeFlex we provide business model analysis, manufacturing management strategies, duty tariff optimization , compliance management, regulatory consultation, duty reduction programs, supply chain and tariff engineering, and cross-border solutions. With over 30 years of expertise, we help businesses land softly in Mexico, ensuring efficient, compliant, and cost-effective cross-border operations. Come work with us today at https://trade-flex.com.
