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How Will Energy Reform in Mexico Impact Your Transportation Costs?
What’s Happening With Fuel Prices in Mexico?
Over the course of 2017, big changes will continue to affect fuel pricing in Mexico with wide-ranging impacts on consumers and businesses of all types. In an effort to open up markets, the central government has begun a process of liberalizing the market for fuel, a break with 80+ years of government control and subsidization.
The effect of energy reform in Mexico has been felt throughout the economy and for transportation in particular. As fuel prices in Mexico change on a daily basis and react to forces of the global market, shippers have been forced to change the way they operate both inside Mexico and across borders.
Outcomes from fuel liberalization include:
Variability in transportation expenses
The advent of surcharges, alone or accompanied by increased rates in general
Higher overall logistics costs
When the nation’s government was setting prices, it was easy for carriers and shippers transporting goods through Mexico to budget for the cost of fuel. Now that prices fluctuate and vary from region to region as a result of liberalization, it is becoming increasingly important for shippers to understand the energy market across the border. Shockwaves from price liberalization are already being felt and will accelerate through the rest of 2017 as the Mexican government advances the process region by region.
“Fuel used to be the least volatile supply-chain cost in Mexico. Now it’s the most volatile and frustrating thing for shippers and carriers.” – Daniel Cullen, Vice President of Advisory Services, Breakthrough®Fuel
Watch Daniel Cullen explain how fuel providers can establish and maintain strong relationships with their consumers, even in the midst of this rapidly changing environment:
How Can Shippers Manage this Volatile Cost?
Breakthrough®Fuel provides the proprietary technology and data-driven solutions to help you navigate the challenges of this turbulent period. Our market intelligence and cost management platform will provide you with:
Increased visibility to fuel spend by separating freight costs from fuel costs
Fuel pricing for each individual freight movement
Access to the monthly Breakthrough®Advisor publication highlighting Mexican-specific market conditions and trends
Standardized pricing to allow for more effective negotiation
Baseline framework for future year efficiency savings
Monthly reporting to illustrate fuel spend and savings
At Breakthrough®Fuel, we help global companies like Unilever, Whirlpool, and Procter & Gamble optimize their transportation costs every single day. Using our proprietary data and technology, we provide transparency into the true costs of shipping, removing distortion. With the support of our research-based market insights, your organization will be equipped to respond to market impacts such as refinery outages, weather incidents, or geopolitical instability. We provide our leading-edge services to 47 countries.
Breakthrough®Global Advisor – Mexico
Understand your fuel costs in Mexico and check out our in-depth analysis of recent fuel price history, as well as an outlook and forecast for fuel prices in the months to come.
Sign up below to receive your complimentary three-month subscription to the Breakthrough®Global Advisor Brief: Mexico Edition. The Advisor Brief is our Breakthrough®Global Advisor: Mexico Edition, only condensed. The Brief explores drivers impacting the transportation energy market in Mexico and includes our monthly fuel price forecasts.