Mexican Truckers Strike as UPS Raises Outlook Into Holiday Peak

Truckers in Mexico launched a nationwide strike on Monday, threatening the busiest overland trade corridor with the US. Meanwhile, United Parcel Service Inc. signalled confidence heading into the holiday shipping season.

Mexico’s National Chamber of Freight Transportation, known as CANACAR, called an indefinite strike over cargo theft, extortion and violence against drivers. Its other grievances include high operating costs such as towing fees, poor road conditions, and a proposed change to a tax credit on highway tolls. Demonstrations were planned in Nuevo Laredo, Reynosa, Monterrey, Tijuana and Mexico City.

Nuevo Laredo sits across the border from Laredo, Texas, the leading US inland port of entry. CANACAR says about 21,000 border crossings and $1.8 billion in trade move between the two countries each day, although organizers said drivers would not close roads or toll booths.

The impact may be limited. Mexico’s Interior Ministry said most transport groups had accepted an offer of talks with the government, and it called CANACAR’s refusal “inexplicable.” CANACAR President Augusto Ramos Melo said members had “grown increasingly frustrated with cargo theft, violence against drivers.”

North of the border, UPS reported third-quarter adjusted earnings of 1.69 dollars a share on Tuesday, beating analysts’ average estimate of 1.63 dollars. Revenue of 22.9 billion dollars also came in ahead of forecasts. The Atlanta-based carrier raised its full-year revenue outlook to about 92.6 billion dollars, from 91.2 billion dollars.

The company has spent the past 18 months cutting about half of its Amazon.com Inc. volume. It is shifting toward higher-margin healthcare, cross-border and business deliveries. UPS plans to hire about 100,000 seasonal workers despite fuel costs weighing on results. Chief Executive Officer Carol Tomé said the company was “entering the holiday shipping season from a position of strength.”