Mexico-US trade concerns mount with fuel price hikes
Shipper interests and free trade advocates concerned about Donald Trump’s presidential campaign rhetoric to dismantle NAFTA have new concerns coming from the United States’ neighbor to the south, and it could be just as costly.
A controversial program Mexico installed on Jan. 1 that raises fuel prices by up to 20 percent soon will trickle down to trucking operators and ultimately to the automotive, white goods, and other manufacturers and suppliers surging into Mexico.
“Transportation costs are going to go up for everybody,” said Ben Enriquez, senior vice president of Mexican transportation services at logistics provider Transplace. “Mexican carriers are going to start implementing fuel surcharges on top of their rates or begin increasing rates continuously.”