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The Hill
02-08-2025
- Business
- The Hill
Mexico's tequila boom is threatened by literal highway robbery
Mexico's flourishing tequila sector is an example of the country's success in developing vibrant export industries. But the industry also offers an unfortunate reminder of the risks export companies face from violent crime in general and the hijacking of cargo trucks in particular. During a recent visit to the Pacific Coast state of Jalisco, I saw Mexico's tequila bonanza firsthand. I stopped by a small still operated by a company called Tequila Aretta, as well as Jose Cuervo's massive distillery, the epicenter of production that led to $2.5 billion in revenues in 2024. I sipped samples of flavorful, smoky, amber-hued tequila reposado and añejo and drove through fields lined with endless rows of tall, spiky agave azul plants. I watched heavy trucks rumbling along country roads, moving goods to the state's major highways, towards Mexico's major ports and up to the U.S. for export. Mexico's tequila exports are now a $3.2 billion-a-year industry. Mexico's success as exporter is part of the reason why truck crossings from Mexico to the U.S. tripled from just 1.8 million in 1993 to 5.9 million in 2024. But every bottle of tequila shipped out of Jalisco — including the exquisite Jose Cuervo Reserva de la Familia Extra Anejo I sampled while there — is now facing serious risk before it reaches customers in the U.S. and other markets. Unfortunately, Mexico's export success story is being undermined by persistent problems with roadway security and from armed hijackers. In January, police in the state of Veracruz in eastern Mexico recovered a truck that was stolen while transporting $128,000 worth of tequila. In December 2021, hijackers in the state of Jalisco intercepted a truck carrying 30,000 liters of tequila, assaulted the driver and stole the truck and cargo. In July 2020, gunmen in Jalisco used a truck to block the road in front of a truck carrying a shipment of tequila and hijack the vehicle to steal the shipment. (Police later recovered the truck and merchandise). These incidents highlight a broader problem in Mexico of persistent violent crime and organized crime activity in many of the country's top nearshoring states. According to Mexico's private security industry association, 15,937 cargo truck hijackings occurred in Mexico in 2024, up 9 percent from 2023. Within the insurance industry, Mexico is widely considered to be the world's worst hotspot for cargo truck hijacking. Reliance Partners (where I am executive vice president) compiles and analyzes data published by Mexico's federal government, showing that the bulk of these hijackings occur in central Mexico in the industrial zone surrounding Mexico City, rather than in border cities such as Tijuana and Ciudad Juarez. In 2024, food and drinks were the most commonly stolen product in cargo truck hijackings in Mexico, accounting for nearly a third of all incidents. The hijacking issue reflects broader concerns affecting foreign companies in Mexico. In 2024, the World Justice Project ranked Mexico in 118th place in its Rule of Law Index, and listed Mexico among the world's worst countries in the categories of order, security and absence of corruption. While homicide totals have declined in recent years, Mexico remains among the world's most violent countries. In 2024, six of the top 10 most violent cities on earth were in Mexico. Shortly after taking office in October 2024, President Claudia Sheinbaum met with the country's powerful CCE business chamber to discuss plans for improving highway security and better protecting companies moving products on Mexico's roadways. In December, Sheinbaum announced the implementation of a strategy called Operation Balam and directed Mexico's National Guard to work directly with private-sector companies to help escort trucks in high-risk zones. More broadly, Sheinbaum has promised to dismantle Mexico's organized crime groups by focusing on improving police intelligence and investigative capacity. Sheinbaum is still just over six months into her first year in office. She has done an admirable job in working to negotiate with the Trump administration, trying to protect Mexican exporters from punitive tariffs. I know from conversations I've had with executives in Mexico that several of Jalisco's top tequila producers have purchased comprehensive insurance policies to protect their merchandise as it is moved over the U.S. border. But many small and mid-size distilleries (as well as a wide range of other export-focused manufacturing companies) still face considerable risk from loss to robbery or hijacking. Mexico's tequila industry is a success story that needs to be protected. President Sheinbaum still needs to do more to improve roadway security and shield Mexico's thriving tequila business from highway robbers.
Yahoo
15-07-2025
- Automotive
- Yahoo
Modernization of Cross-Border Trade event draws industry experts to Laredo, TX
In the ever-evolving landscape of cross-border trade between the U.S. and Mexico, Reliance Partners continues to foster collaboration and expertise with annual Modernization of Cross-Border Trade events. Held on June 17, 2025, at the Laredo Country Club in Laredo, Texas, the 8th Annual Modernization of Cross-Border Trade event drew in over 500 logistics professionals. 2025 featured a strong sponsor lineup, including Cargado, Monex USA, Volvo Trucks, Evans Transportation, Werner, Dunavant, Atlantic Logistics, and more, with complimentary admission for all logistics providers, shippers, and freight brokers. What started eight years ago as an insurance-focused gathering has evolved into a premier industry forum where cross-border technology disruptors, logistics firms expanding into Mexico, and capacity providers connect and collaborate. This year's speakers highlighted the following topics: What to expect from the 2026 United States-Mexico-Canada Agreement review upon the election of President Donald Trump and Mexican President Claudia Sheinbaum How and when to leverage cross-border warehouse space What cross-border investment firms are looking at in 2025 Cross-border partner vetting Practical technology for cross-border in 2025 U.S.-Mexico customs brokerage panel with Customs and Border Protection The Need for Cross-Border Insurance At the core of the event's discussions was the vital role of cross-border insurance, a topic that is gaining increasing prominence amid escalating trade volumes and complexities. The importance of having robust cross-border insurance cannot be overstated, particularly as the Mexican cargo landscape presents numerous challenges. With a 3% increase in cargo truck hijacking reported in 2023, according to the , Mark Vickers, Executive Vice President and Head of International Logistics at Reliance Partners, highlighted key differences between U.S. and Mexican insurance policies. U.S.-issued Mexican cargo insurance is particularly beneficial as it allows claims to be resolved in the U.S., offering more reliable outcomes. In contrast, Mexican cargo insurance often involves lenient liability requirements. Carriers' liability for cargo damage tends to be capped significantly lower than actual shipment values. These limitations are coupled with burdensome documentation requirements and exclusions typical to Mexican policies, which often delay claim payouts and complicate logistics operations. Moreover, the negligence-based liability in Mexico means that carriers are only accountable for damages caused by negligence, leaving significant risks for shippers uncovered. Effective insurance has become a more crucial need than ever. Cross-border insurance helps to ensure continuity and mitigate risk. Every cross-border operation needs stability when it comes to an uncertain environment. The 8th Annual Modernization of Cross-Border Trade event featured a range of thought-provoking panels covering topics such as cross-border disruption, Mexican cargo insurance, and strategies for expanding capacity. The participation level and diversity of attendees spanned shippers, freight brokers, U.S. and Mexican carriers, customs brokers, warehouse operators, logistics tech companies, and investors. Many event participants validated the necessity for progress and preparedness in regards to this topic. 'It starts with great people, and this event truly brought them together,' said one attendee. One industry professional noted, 'If you're investing in cross-border and you aren't in Laredo at this event, you're missing out.' Another echoed, 'This event showcases how fast the space is evolving and how important it is to be part of the conversation.' Reliance Partners' Cross-Border Solutions In response to these challenges, Reliance Partners has developed the Borderless Coverage program. This innovative program is specifically designed to connect shippers, carriers, and brokers with U.S.-based underwriters who specialize in Mexican cargo insurance. The program aims to eliminate the uncertainties of traditional policies by ensuring expedited claims payments directly to the shipper, thus maintaining operational flow while supporting cost recovery. Borderless Coverage offers transparent policies that reflect the tangible realities of cross-border risk, thereby shielding shippers from vulnerabilities associated with traditional insurance models. Simplified coverage options reduce unrealistic requirements that often lead to disputes. This model promotes collaboration and partnership rather than tedious policy navigation. Likewise, Reliance Partners' Cargo Truck Hijacking Portal is designed to help nearshoring executives, journalists, international logistics professionals and researchers analyze roadway logistics risk in Mexico. The Reliance team compiles, consolidates, and crunches data from Mexico's federal government's National Public Security System in order to provide the first and only open source data portal on cargo hijackings in Mexico. Upcoming News With nearshoring initiatives gaining momentum, the impetus for robust partnerships and comprehensive insurance solutions remains high. The insights shared at the 8th Annual Modernization of Cross-Border Trade event reinforce the critical nature of insurance in facilitating secure and efficient trade activities across borders. As the landscape continues to shift (fueled by innovations and policy changes), the role of cross-border insurance as a stabilizing force shouldn't be overlooked. Industry players need to align towards common goals, and for that they need the knowledge and tools to navigate the complexities of a dynamic trading environment. Reliance Partners has already set its sights on future engagements, with preparations underway for the 9th Annual Modernization of Cross-Border Trade. Because this is a topic of growing importance, there has to be continued dialogue and collaboration within the trade community. Reliance Partners wants to enhance industry discourse and play a pivotal role in shaping the future of cross-border logistics and insurance. Click here to learn more about Reliance Partners. The post Modernization of Cross-Border Trade event draws industry experts to Laredo, TX appeared first on FreightWaves. 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