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Rising Cargo Theft Threatens Mexico’s Transportation Sector

Cargo theft significantly grew during January-September 2023 compared to the same period in the previous year, according to the Executive Ministry of the National Public Security System (SESNSP). This has become one of the biggest challenges Mexico’s transportation and logistics industry faces, threatening the country’s economy.

SESNSP’s Common Jurisdiction Crime Incidence Index reports that cargo theft increased by 9.4% during the studied period and that 85.7% of thefts involved violence. Among the states most affected by this type of crime are Jalisco, the State of Mexico, Michoacan, Puebla, and San Luis Potosi. The state that stands out with the most significant increase in theft is Puebla, with a 10.34% surge in cargo theft during the August-September 2023 period and a 53.8% increase during the January-September 2023 period, compared to the same timeframe in 2022.

Prevention and management firm Blac reports that the states with the highest number of thefts in September were Puebla, the State of Mexico, Queretaro, Veracruz, and Guanajuato. Monthly thefts increased by 131% in September 2022 compared to the same month in 2023.

Blac’s report also shows that cargo theft occurs more frequently on Wednesdays (29%), Tuesdays (24%), and Fridays (20%). Furthermore, most robberies took place during the evening, with 57% occurring between 12:00 am and 1:00 am and another 11% happening between 11:00 am and 12:00 pm.

The most commonly targeted cargo types are groceries (36%), general merchandise (19%), empty containers (19%), and construction materials (13%). Other goods, such as perishable items, pharmaceuticals, grains and seeds, and chemicals, also make the list of targeted cargo.

The Transport and Logistics Confidence Index (ICTYL) by Business Intelligence T21 further reinforces these statistics. The ICTYL report projects a confidence level of 33.99 for the 3Q23, representing a significant decrease of 9.97 points from the previous quarter. This marks the third consecutive period of declining confidence in the industry, reflecting the challenges faced by those in the transportation sector.

The ICTYL report also highlights the impact of the intensive inspections imposed by the government of Texas, on cross-border trade operations with Mexico, with 45% of survey respondents expressing concerns that these blockades would significantly impact their businesses.

Source: Mexico Bussines News