COVID-19 Logistics Update: Mexico, Canada & Europe

Mexico:  We have sent updates this week on the situation with alcohol beverage movement in Mexico and continue to monitor the situation. The National Decree notice that advised all alcoholic beverages as non-essential has been modified and now both Tequila and Mezcal have been deemed essential as they relate to the Agroindustry. The outcome for the beer and wine industry is less certain. Grupo Modelo, brewer of Corona beer and other brands, announced that they will suspend production in all Mexico plants as of April 5 unless the federal government reclassifies beer as essential. Other breweries remain open at the moment, but we suggest you check with your suppliers as each state may apply their own orders. We can also report from Albatrans Mexico that they have taken action to secure storage space at major cities and ports all over Mexico, as well as warehouses and secure yards, should any cargo need to be picked up and stored - they are ready for all contingencies so please let us know if you have any need for assistance.

More Mexico News: The good news from Mexico is that the Tequila Regulatory Council has officially approved the use of Digital CRT (Consejo Regulador del Tequila)—one of the key documents required for export of Tequila from Mexico. Previously, this certificate had to be prepared in original and signed by the regulatory body. In order to avoid people coming to the CRT to pick up originals, they are now allowing the CRT E-Document to be submitted online via the VUCEM system. Alison Leavitt of WSSA and Emmanuel Sanchez, Managing Director of Albatrans Mexico, proposed going digital during a meeting with Alfonso Mojico Navarro, Director General of the National Chamber of the Tequila Industry at the DISCUS conference held in February. Emmanuel reactivated this plan with key stakeholders when back in Mexico.  The pandemic pushed the plan forward, and we will continue to work toward making this change permanent and not just applicable during this time of crisis. This is a big step toward efficiency for the industry, and we will keep you posted as to the next steps.

Canada:  Canadian logistics providers are pushing provincial and federal governments to clarify which businesses are considered essential. There is currently confusion in Canada, creating backlogs due to closed warehouses. The ports and railroad operations are clearly defined as essential, but the situation for warehouses and distribution centers is less clear. We will keep you advised as to the outcome.

Europe to USA Cancelled Sailings:  We have been notified from multiple steamship lines about blank sailings scheduled later this month on multiple strings from North Europe to the USA. Hapag, MSC, ONE, and Maersk have all announced cancellations; thus, there will be a disruption in services and potential delays. Let us know if you have any questions or would like copies of the specific cancellations.

We will send further updates on Monday and share an “around the world” slide deck covering the continued and ever-changing impact of COVID 19 on the supply chain. We also hope to have further updates from CBP and TTB on potential extension of excise tax payments for importers.  

Stay safe, stay healthy, and we will do our best to keep shipments moving and keep you all informed on the day to day updates.