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.

Watch our special feature webcast on The Cost of Mexican Energy Reform:

Watch the full 30-minute webcast here >

How Can Shippers Manage this Volatile Cost?

Breakthrough 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, 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.