Gasoline sales tank putting stations at risk, delaying ships in Veracruz

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April 22, 2020

Business is slow at Mexico's gas stations.

The coronavirus pandemic is taking a heavy financial toll across Mexico’s petroleum sector: crude prices have slumped, gasoline sales have plummeted and oil tankers are stranded off the country’s Gulf coast.

The price of Mexico’s export crude fell into negative territory for the first time ever on Monday as demand for oil remains low due to the global spread of Covid-19.

A barrel of Mexican crude recovered to US $7.12 at the close of trading on Tuesday – a 400% increase compared to Monday’s closing price of -$2.37 – but is only about one-eighth the price a barrel was selling for in the middle of January.

Although the federal government and state oil company Pemex have hedging programs in place, Mexico’s oil revenue is expected to decline significantly this year. Pemex, saddled with $105 billion in debt, has now been downgraded to junk status by both Fitch Ratings and Moody’s Investors Service.

Mexico’s gas stations are also in a precarious position: fuel sales at stations affiliated with the national gas station trade organization Onexpo declined 70% between April 10 and 18, the biggest slump ever.

According to an Onexpo document obtained by the newspaper Milenio, the ongoing viability of some gas stations is at risk due to the downturn in demand caused by the coronavirus crisis. Many of Mexico’s gas stations are run as small businesses although they sell fuel under the banner of large companies.

With Mexico now in phase three of the coronavirus pandemic, the demand for fuel at gas stations is expected to fall even further.

In that context, Onexpo is calling for assistance from the federal government that will help gas stations to survive and avoid a massive loss of jobs. It is asking that the government give gas stations more time to install new volume controls on pumps and allow them to delay employers’ contributions to the Mexican Social Security Institute so that they can maintain the minimum liquidity required to stay in operation.

Meanwhile, at least 15 tankers were stranded off the coast of Tuxpan, Veracruz, on Tuesday, according to the ship tracking website VesselFinder. The tankers are unable to offload the fuel they are carrying due to a lack of storage space in the Tuxpan port.

The drop in demand for fuel has led to a glut, which in turn means that there is scant space to store it. The absence of both demand and storage space sent oil prices into negative territory on Monday.

The oil tankers stranded off the Gulf coast, each carrying about 5,000 barrels of fuel, are losing up to $30,000 a day because they cannot unload and get back to work, according to petroleum sector experts cited by Milenio.

Source: Milenio (sp)

Mr. Rogers provides good counsel to deal with things like coronavirus

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Sarah DeVries

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April 22, 2020

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I’ve been a fan of Mr. Rogers since I can remember. My mother told me that I used to talk to him when I watched his show (not something that I remember — I must have been a toddler!) — and his gentle, kind demeanor became a blueprint for me of what truly positive masculine energy could be.

There’s been renewed interest in Mr. Rogers lately. Tom Hanks recently played him in A Beautiful Day in the Neighborhood, and the documentary Won’t You Be My Neighbor? about his life, career, and philosophy came out the year before.

So why I am talking about Mr. Rogers? Because his are the lessons, simply put, that remind us to be our higher selves, even in times of pain and uncertainty; indeed, especially in times of pain and uncertainty. The coronavirus crisis certainly counts as one of those times, and as a result we’ve seen plenty of people, governments, and businesses behaving shamefully out of both fear and ignorance.

All over the world, cases of domestic violence are up as people are essentially locked into small spaces with their abusers. In an eerie echo of conspiracy theorists and science deniers in the United States, one widely watched TV host insisted to the public that the Covid-19 statistics were false and should be ignored.

Healthcare workers, in addition to the high risk to their lives at work, have been attacked in the streets as supposed “disease carriers.” Workers who live day to day aren’t sure how they’re going to survive, the economy is expected to continue its sharp contraction, and criminal gang violence does not seem to have slowed as a result of the pandemic. Though our president has assured the public that there will be enough ventilators for everyone that needs one, many health workers have made it known that they are facing dire shortages of protective equipment for themselves.

Shortage of bad news, there is not.

But as Mr. Rogers reminds us to do during hard times, especially when we’re scared: look for the helpers.

Though we’d certainly have preferred not to face all of this upheaval, there is much goodness to be seen, had, and acted upon. A crisis is a chance for people to show their altruism. It’s a chance to care for others in ways that we often get too busy to think of, much less carry out. It’s a chance to remember our common humanity, and to remember that, though the capitalist zeitgeist of the times says otherwise, we all need each other.

So what’s happening out there that’s good?

Hotel Fénix in Guadalajara pivoted its business to sell and deliver tamales, making extra to donate to health workers and patients’ families. By doing this, they’re keeping their staff employed and helping those in need. The owner has said he will continue doing this even after the crisis has passed.

Taquería los Pastorcitos in Mexico City decided that, despite the struggle to make money, they would simply give tacos away to those in need. They put up a touching banner in front: “It’s not going well for us either, but at least we can give you a few taquitos.”

In my favorite story of the week, unemployed mariachis gathered to serenade hospital workers in Acapulco to show their appreciation for their work (they could have stood a bit farther apart from each other, but still). It was a touching show of affection and solidarity.

In the absence of the normal hustle and bustle of human industry and activity, Mother Nature is also getting a well-deserved moment in the sun, so to speak. This year for Semana Santa, it was the crocodiles that got to enjoy some beach time.

Keep your eye on the regular people who perform both small and large heroic acts every day: the family members who care for children and the elderly, the healthcare workers who continue to go to work everyday despite the very real danger to their own lives, the teachers making an effort to ensure their students keep learning despite the quarantine. The trash collectors keep coming, the supermarket workers continue to report for duty, the bus drivers continue on their routes.

When he sees someone worse off than he is, my dad will say, “There but for the grace of God go I.” Despite one’s religious or spiritual beliefs, it’s a good reminder: no human is invincible, and none of us can get through this life without others.

Let’s keep helping each other, and maybe, if we can really keep this basic fact in the front of our minds, we can create something better than what we had before for all of us.

Sarah DeVries writes from her home in Xalapa, Veracruz.

6 arrests in Jalisco on first day of new isolation measures

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Cody Copeland

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April 22, 2020

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Authorities in Jalisco are checking the temperature of travelers entering the state.

Police in Jalisco arrested six people and turned back six others attempting to drive into the state on the first day of a new obligatory quarantine period.

Governor Enrique Alfaro Ramírez said that Monday’s arrests were made in San Pedro Tlaquepaque and Tlajomulco de Zúñiga. In the former, police arrested five people drinking in public who insulted the officers when they were asked to go home.

Police in Tlajomulco were forced to arrest a man waiting for public transport after he became aggressive when the officers asked him to wear a face mask.

As for the motorists turned away at the state border, Ramírez said they were denied entry into Jalisco because they were running fevers when examined by health professionals at highway checkpoints. All were from the Valley of México.

Jalisco isn’t the only state that has experienced growing pains upon initiating stricter Covid-19 mitigation measures. Authorities in Sonora meted out 130 fines on that state’s first day of mandatory lockdown on April 13.

Meanwhile, other states are also toughening up actions to slow the spread of Covid-19. Aguascalientes Governor Martín Orozco Sandoval announced a broadening of preventative measures, including the mandatory use of face masks in public beginning on Friday.

Police will use fines and arrests against people who do not comply. The fines will range as high as 80,000 pesos (US $3,254) depending on the severity of the infraction.

The governor also said the state Health Ministry will create a medical brigade to accompany police on monitoring operations to convince violators to return to their homes.

Health authorities will also carry out sanitation operations in the markets and public transportation facilities in the state’s 11 municipalities.

Source: El Universal (sp)

ln the times of Covid-19, supermarket shopping a new experience

By

Susy Buchanan

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April 22, 2020

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Grocery shopping in the midst of the pandemic has become a totally new experience, the newspaper Milenio reported after visiting several supermarkets in and around Mexico City to check out the social distancing and hygiene measures they are taking to prevent the spread of the coronavirus.

At Sam’s Club in Cuemanco, customers are greeted by a worker who applies antibacterial gel to their hands and only allows one person per membership to enter.

Aisles are mostly empty of shoppers due to the limited access, and workers all wear masks. At checkout, cashiers make sure customers respect social distancing and are not permitted to approach the cashier until the person in front of them has finished paying. If they are being greeted by the usual friendly smile, it’s impossible to see underneath the masks.

The situation is similar at Superama in Portales Sur. Only one person per family can enter the store, and a woman wearing a mask and gloves wipes down the shopping carts with an alcohol-soaked cloth.

Gone are the tongs and trays customers usually use to select products from the bakery. Today, loaves of bread and pastries are individually wrapped in cellophane.

Online shopping has become increasingly popular, and supermarket workers push carts through the aisles filling customers’ orders.

At checkout, taped marks on the floor help customers maintain distance from one another while waiting their turn. Cashiers wearing masks greet customers from behind a clear plastic barrier, and there are no baggers to pack groceries. As most are elderly, they have been sent home to wait out the pandemic.

At Santa Fe’s Bodega Aurrerá, despite stay-at-home orders, several families congregate at the entrance, waiting for their one family member who has been allowed entry to tackle the shopping on his or her own. Police officers wearing masks and gloves make sure this policy is adhered to.

Inside the store, workers wearing protective gear spray the handles of shopping carts with disinfectant. Again, taped marks on the floor at checkout areas keep customers at a safe distance.

At the Eduardo Molina Afuera Walmart, capacity has been reduced from 3,000 shoppers to 1,400, and a sign tells customers they must remain 2.25 meters away from others.

At Sam’s Club in Coacalco, shopping rules are blasted over large speakers before shoppers, one per family, enter the store. Aisles are eerily empty and signs are placed in front of essential items where purchase amounts have been limited.

At Híper Soriana in the Los Ángeles neighborhood, shopping conditions are less than ideal. Still, customers must wait for a shopper to leave the store before they can enter, and a bottle of hand sanitizer sits on a table at the entrance for customers to use, should they choose to do so. However, shelves where rice, beans, pasta and soup should be are empty, and the floors at checkout are taped but few people pay the recommended distance any regard.

While efforts are being made to make shopping a safer experience, albeit a strange one, it’s up to customers themselves to make sure they abide by guidelines and do their part to flatten the curve.

Source: Milenio (sp)

Airbnb hosts to offer free accommodation to frontline healthcare workers

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Cody Copeland

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April 22, 2020

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The online vacation rental platform Airbnb has announced that it will provide free accommodation in the homes of volunteer hosts to health workers treating patients with Covid-19.

The company’s Frontline Stays program is working with the Mexican Red Cross to provide medical personnel with convenient and comfortable places to stay so they can focus their attention and efforts on saving lives.

Red Cross President Fernando Suinaga Cárdenas praised the “dedication, professionalism, commitment and spirit of service” of frontline medical workers and said that the alliance with Airbnb is a way to show them gratitude and support.

“We are infinitely grateful to Airbnb and its hosts for being in solidarity with all the frontline responders who are dedicating each day of their lives to fight against Covid-19,” he said.

Available accommodations include entire houses with independent entrances, as well as individual rooms in boutique hotels. Airbnb is offering hosts who volunteer as much as US $50 as a cleaning subsidy.

Guests will be obliged to follow strict safety requirements ranging from observing enhanced cleaning procedures to practicing physical distancing to allowing for a 72-hour buffer period between stays.

For its part, Airbnb expressed its gratitude to its hosts who are risking their personal safety and space to help respond to the crisis.

“The Mexican Airbnb hosts are the ones who have once again demonstrated their solidarity and generosity in times of need,” said Ángel Terral, the company’s country manager for Mexico, Central America and the Caribbean. “They are the heroes who are opening their spaces to help out in times of need.”

The Frontline Stays program is already putting up health workers in Spain, France, Italy, the United Kingdom, the Philippines, Malaysia and the United States. The cities of New York, Los Angeles and New Orleans have experienced severe outbreaks that have attracted doctors and nurses from around the country to help out.

Suinaga expressed hope that the program will be effective in helping efforts to combat the coronavirus outbreak in Mexico.

“Mexicans have always shown that by joining efforts and being in solidarity we succeed,” he said. “I am sure this will be no exception.”

Mexico News Daily

Bank cuts interest rate, announces US $31-billion economic stimulus

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MND Staff

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April 22, 2020

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The Bank of México cut its benchmark interest rate by 50 basis points on Tuesday and announced 750 billion pesos (US $30.5 billion) in support for the financial system to help the economy weather the coronavirus-fueled downturn.

In a widely-anticipated move, the five members of the central bank’s board voted unanimously to lower the overnight interbank rate to 6%. The out-of-cycle cut came a month after the bank lowered its benchmark rate to 6.5%.

Goldman Sachs economist Alberto Ramos and Marco Oviedo of Barclays are both predicting that Banxico, as the central bank is known, will make further cuts this year to leave the benchmark rate at 4.5% at the end of 2020.

Banxico said that its rate cut and the 750-billion-peso support package – Mexico’s most momentous move yet to support the ailing economy – will “foster an orderly behavior of financial markets, strengthen the credit channels and provide liquidity for the sound development of the financial system.”

Along with measures already announced, the support is equivalent to 3.3% of Mexico’s GDP in 2019.

Banxico said that commercial and development banks will be able to access a 250-billion-peso fund to boost their lending to small and medium-sized businesses as well as individual borrowers.

The central bank also said that it would add hedge transactions settled by differences in United States dollars to its foreign exchange intervention armory in order to “provide orderly operating conditions in the MXN/USD exchange market, particularly during Asia and Europe trading.”

Finance Minister Arturo Herrera, who attended Tuesday’s Banxico board meeting, said on Twitter that the government is working with the central bank “to permit the operation of currency hedges 24/7 and reduce the volatility of our currency.”

The Mexican peso, one of the most traded emerging market currencies, has been hit hard by the coronavirus pandemic as investors abandon it in favor of safe-haven currencies, especially the US dollar. It was trading on Wednesday morning at about 24.6 to the dollar.

The coronavirus crisis is predicted to take a heavy toll on the Mexican economy, which was in recession even before the first case of Covid-19 was reported in Wuhan, China, in late December.

Banxico said on Tuesday that GDP could shrink by 5% in the first half of 2020 compared to the first six months of last year.

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and the financial institution Citibanamex also updated their forecasts on Tuesday, predicting that the Mexican economy will contract by 6.5% and 9%, respectively, this year.

The Business Coordinating Council (CCE), an umbrella organization made up of 12 prominent business groups, has warned that the economy could contract by 7% this year if the government doesn’t ramp up support. It has also said that between 1 million and 1.2 million jobs could be lost.

While the CCE has been critical of the government’s economic response to the coronavirus crisis, it praised the measures announced by the central bank on Tuesday.

“With this policy response, the Bank of México is contributing with its tools to the relief of the national situation,” the council said, adding that it had asserted its autonomy from the government.

Joel Virgen, chief Mexico economist for French bank BNP Paribas, said that the central bank was compelled to respond forcefully to the economic crisis with monetary policy because the government has failed to do so with fiscal policy.

“Context is key; up to this point Mexico’s fiscal effort has been timid in absolute terms and also in relative terms if we compare it with its Latin American peers. This context definitely played [a role] in Banxico’s decision to act more decisively,” he said.

Source: Reuters (en), El Financiero (sp)

Devoid of visitors, waters off Acapulco beach light up with bioluminescence

By

Cody Copeland

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April 22, 2020

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Colorful wave at Acapulco's Puerto Marqués beach.

Bioluminescent plankton was observed in the waves on an Acapulco beach for the first time in over 60 years on Monday night after the Covid-19 pandemic has kept people out of the water for nearly a month.

Photos and videos of waves shot through with streaks of neon blue on Puerto Marqués beach the night before went viral on social media early Tuesday morning. Some excited residents even took the opportunity to splash around in the unusually glowing waters.

Although the phenomenon may seem rare, biologist Enrique Ayala Duval said that the phytoplankton that cause it are actually more prevalent than their fear of human activity may have people believe.

“Marine bacteria are the most abundant of the bioluminescent organisms,” he said, adding that they can live independently or symbiotically on the surfaces, in the cavities or digestive tracts of other marine animals.

Some residents of Acapulco were lucky enough to see a whale surface in the main bay on the very first day of quarantine, and Monday night’s event was another example of the natural world’s propensity to retake the spaces humans have left empty during the Covid-19 pandemic.

Some who tweeted about the phytoplankton lamented the influence that human activity has on the natural world.

“The bad part is that human beings will always be there to ruin everything,” said one Twitter user who posted a video of someone riding a flyboard in the luminescent waves.

The absence of people on the beach in Oaxaca brought out crocodiles earlier this month. The reptiles usually spend their days hidden away in the waters of the lagoon at La Ventanilla, but were spotted roaming the beach.

Sources: SDP Noticias (sp), México Desconocido (sp)

Mayor announces closure of Metro stations, other measures for phase 3

By

Susy Buchanan

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April 22, 2020

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Mayor Sheinbaum announces Covid-19 phase three measures.

With Mexico entering into phase three of the coronavirus pandemic, and with Mexico City being a hot spot for contagion, Mayor Claudia Sheinbaum announced new measures to help flatten the curve in a video circulated on social media Tuesday night.

Beginning Thursday, around 20% of Mexico City’s 195 Metro, bus and light rail stations will close.By closing some of the least busy stations, the mayor hopes to ease crowding at busier stations by increasing the frequency of trains and buses.

The city’s Metro system serves around 1.7 billion passengers a year and is the ninth-largest urban transportation system in the world. On a normal day, that translates to around 5 million riders, although stay-at-home measures due to the coronavirus have already reduced that number to around 890,000 per day.

Other new measures in the capital include implementing the “Hoy No Circula” — “no-drive day” — program for all residents, although taxi drivers, truckers, people with disabilities and medical and health care workers will be exempt.

Metro stations and other public spaces are slated for increased sanitary measures, and nonessential businesses that remain open will be sanctioned, the mayor announced.

Sheinbaum promised that her government would not implement a curfew, nor fine people who venture out of their homes. She instead appealed to citizens’ sense of responsibility and applauded “those who have stayed at home, those who respect social distancing and those who wear masks on public transit. This has been very important, but in phase three we need to redouble our efforts. We are going to beat the pandemic, but we all have to participate,” she said.

Source: Milenio (sp)

As the coronavirus contagion spreads, Mexico waits for critical ventilators

By

MND Staff

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April 22, 2020

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Mexico is now in the most critical phase of the coronavirus pandemic but lacks at least 10,000 ventilators to respond to it adequately, according to an academic at Mexico City’s Metropolitan Autonomous University (UAM).

The federal government declared the commencement of phase three of the pandemic on Tuesday, acknowledging that the number of Covid-19 cases and patients requiring hospitalization is likely to increase rapidly in the coming weeks.

President López Obrador said Sunday that public hospitals will have a total of 13,000 ventilators available for the treatment of coronavirus patients, highlighting that China and the United States have agreed to sell Mexico almost 2,500 of the machines.

However, as things stand, the country only has 5,200 ventilators, says Joaquín Azpiroz Leehan, a biomedical engineering professor at UAM. “At least another 10,000 are needed,” he told the newspaper Milenio.

“According to data from the Health Ministry,” Azpiroz added, Mexico has one ventilator per 22,813 residents whereas Canada has one for every 12,000 people and has “already declared a crisis.”

Ventilators are a key piece of equipment in the treatment of Covid-19 patients.

“That shows the level of scarcity in our country,” he said.

While the government waits for ventilators deliveries from China and the United States that are expected to commence this week, universities and private companies are moving ahead with their own plans to manufacture the vital medical machines.

Researchers at UAM and the National Autonomous University are currently collaborating on the design of a ventilator and expect to have the first 1,000 made by June or July, Milenio reported. The researchers are seeking agreements with companies including Ford and Mabe to manufacture at least 10,000 units.

Thirty-five private companies have already committed to contributing to a project that intends to manufacture 15,000 ventilators to treat coronavirus patients, Enoch Castellanos, president of the National Chamber for Industrial Transformation, said earlier this month, while the National Council of Science and Technology has indicated that it has the capacity to produce up to 500 ventilators per week.

However, as the new coronavirus spreads rapidly in many parts of the country and with hospital admissions expected to increase sharply in May, everyone involved in the manufacture and acquisition of ventilators will be racing against the clock.

It remains to be seen whether Mexico will ultimately have enough of the machines to treat critically-ill Covid-19 patients – as López Obrador has promised – or whether it will face the same shortages as other countries that have had large outbreaks of the disease.

Map of active coronavirus cases. In such cases victims show symptoms and are still considered contagious.

The government’s General Health Council has already published a guide, suggesting that younger Covid-19 patients who need critical care should be prioritized over seniors when medical resources such as ventilators are limited.

Some hospitals in Mexico, including public facilities in Mexico City and Tijuana, are already being stretched to the limit as the number of people requiring medical treatment for Covid-19 continues to increase.

Health Ministry Director of Epidemiology José Luis Alomía reported on Tuesday that the death toll from the disease had increased to 857 from 712 on Monday. The 145 new fatalities represent the biggest single-day increase in the death toll since the first Covid-19 patient died on March 18.

Alomía also said that the number of confirmed coronavirus cases had increased by 729 to 9,501. Just under 3,200 cases are currently considered to be active, he said. There are also more than 8,000 suspected cases of the disease across the country.

Just over 37% of people confirmed to have Covid-19 have required hospitalization, a figure that has increased sharply since the end of March when only about 10% of those infected had needed hospital care. More than two-thirds of those who have died after contracting Covid-19 have been men.

Mexico City continues to be the worst-affected entity in the country with 2,857 confirmed cases and 224 deaths. México state ranks second for cases with just over 1,000 while Baja California is second for deaths with 100.

Every state in the country has recorded at least two coronavirus fatalities with more than 50 deaths reported in each of México state, Tabasco, Puebla and Sinaloa.

At the municipal level, Tijuana has recorded the highest number of deaths with 66 followed by Gustavo A. Madero in Mexico City and Culiacán, Sinaloa, where 44 and 36 people, respectively, have lost their lives to the disease, which has now infected almost 2.6 million people around the world and killed just under 180,000, according to official counts.

Source: Milenio (sp)

US urges Mexico to allow factories to reopen to end supply chain disruption

By

MND Staff

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April 21, 2020

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Ellen Lord: the companies are important for US airframe production.

The United States government is urging Mexico to allow the reopening of certain factories that were closed due to the coronavirus pandemic.

The supply chain for defense manufacturers in the United States, especially those in the aircraft sector, has been disrupted because the Mexican government didn’t classify factories in the aerospace and defense sectors as essential when it declared a health emergency at the end of March.

Ellen Lord, U.S. Undersecretary of Defense for Acquisition and Sustainment, told reporters at the Pentagon on Monday that she had discussed the problem with U.S. ambassador to Mexico, Christopher Landau.

She also said that she was planning to write Foreign Affairs Minister Marcelo Ebrard to ask that he “help reopen international suppliers” in Mexico.

“These companies are especially important for our U.S. airframe production,” Lord said. “Mexico right now is somewhat problematical for us but we’re working through our embassy.”

Among the companies that have factories in Mexico and supply aerospace products to the United States are General Electric, Honeywell, Lockheed Martin and Eurocopter.

Aerospace exports from Mexico have increased exponentially over the last 15 years from US $1.3 billion in 2004 to $9.6 billion in 2019, according to the Mexican Federation of Aerospace Industries (FEMIA).

Luis Lizcano, the federation’s general director, told the website Defense News that Mexico is in the top 10 overseas suppliers to the U.S. aerospace and defense sector. A broad range of products including avionics, landing gear and fuselages are manufactured here, he said.

Lizcano said that FEMIA is arguing publicly that the government should classify Mexico’s aerospace and defense sector as essential to bring it into line with the same industries in the United States and Canada.

“What we’re asking is that we standardize in this sector because we’re going to break with supply chains … for commercial and defense aircraft,” he said.

For his part, Ambassador Landau said in a Twitter post on Tuesday that he is doing all he can “to save” the decades-old supply chains between Mexico, the United States and Canada.

“It’s possible and essential to look after the health of workers without destroying those chains. The economic integration of North America requires coordination,” he wrote.

His post triggered a critical response from some Twitter users, prompting Landau to defend it in a series of additional tweets.

“Human life must be protected without destroying the economy. That’s the conversation we need [to have]. There is risk everywhere but we don’t all stay at home out of fear that we’re going to crash our cars. Economic destruction also threatens health,” Landau said in one tweet.

“Of course health comes first but I think that it’s shortsighted to suggest the economic effects don’t matter,” he wrote.

“We have to protect [people’s] health without destroying the economy. It’s not impossible. … I’m here to look for win-win solutions. On both sides of the border, investment = employment = prosperity.”

Among the Twitter users who criticized the ambassador’s suggestion that factory workers should return to their jobs amid the coronavirus pandemic was the novelist and journalist Francisco Goldman.

“Ambassador MAGA [Make America Great Again], shame on you,” he tweeted to Landau.

Source: Reforma (sp), Defense News (en)