Mass protests have been taking place across parts of Bolivia since early May, blocking roads and disrupting the movement of goods and people, particularly in and out of La Paz and El Alto, the country’s most populous region and a major economic hub.
Road blockades have led to severe shortages of fuel, food, and medical supplies in the affected areas. The unrest initially broke out after the government announced a land reform law that some worried would make it easy for large landowners to buy up small-scale farms. The law has since been scrapped.
Despite this and other concessions, the protests have extended to several other groups, including miners, transport workers, and teachers, demanding a variety of changes, such as wage increases, the reinstatement of a long-standing petrol subsidiary, and the resignation of Rodrigo Paz, the country’s president.
After almost a month of demonstrations, the Bolivian Congress passed a bill that would make it easier for the government to deploy military personnel to quell protests and declare a state of emergency.
By mid-June, protesters had erected more than a hundred blockades across the country. According to the country’s highway administrator, the total number of blockades has now dropped to around 50.
Authorities have sent out machinery to clear roads and repair damages, while citizens are trying to remove debris manually in some affected areas.
Protesters have started to withdraw from parts of La Paz, Cochabamba, El Alto and other areas after the government reached agreements with some groups. Others appear willing to begin talks with the authorities amid mounting economic losses and growing public pressure. Despite these signs of de-escalation, the situation could quickly escalate again if the government cannot reach agreements with the remaining protesters.
Road blockades disrupt business and logistics activities in Bolivia
The demonstrations, as well as the associated road blockades, have caused widespread business and logistics disruptions in Bolivia. Around a month into the unrest, nationwide economic losses were estimated to amount to roughly $50 million (€43 million) per day. By mid-June, total economic losses had reached $2.8 billion (€ 2.4 billion), or around 5.5% of Bolivia’s total GDP, according to the National Chamber of Industries.
Logistics disruptions have been particularly severe in the road freight sector, with more than 5,000 trucks believed to be stranded along Bolivian roads by mid-June. The protests have not only halted the movement of cargo within parts of Bolivia but have also disrupted routes connecting Bolivia to neighboring countries.
In some cases, road blockades and infrastructure damage have closed important transit routes, including roads connecting Paraguay to Peru via Bolivia, leaving a number of trucks carrying raw materials destined for manufacturers in Paraguay unable to return since the protests broke out.
Delays have also been reported along Bolivian routes to seaports in Chile, including roads leading through Tambo Quemado and Pisiga, two border towns in the Oruro Department. Tambo Quemado sits along the highways Ruta 4 and Ruta 11-CH, which serve as a direct road connection between Bolivia’s capital La Paz and the Port of Arica in Chile, a critical export hub for bulk minerals like boron and refined copper.
The protests in land-locked Bolivia have also impacted container handling at seaports in neighboring countries with delays reported during the pick-up and return of containers.
Protests impact mining, pharmaceuticals, and agricultural industries across several departments
La Paz and El Alto, where many of the road blockades were erected, are among the most impacted areas. A representative of the La Paz Chamber of Industries recently warned that the blockades have disrupted export as well as domestic distribution activities. According to the head of the chamber, almost two-thirds of companies located in the department are believed to have halted operations due to the road closures as of mid-June.
In addition to La Paz and El Alto, major business disruptions have also been reported in regions such as Oruro, Potosí and Cochabamba, affecting companies in sectors such as mining, agriculture and textile making.
Pharmaceuticals
Around half of all pharmaceutical companies operating in Bolivia are located in El Alto, making the concentration of protests in the La Paz Department particularly damaging to the country’s pharmaceutical industry. The Bolivian Chamber of the Pharmaceutical Industry (Cifabol) warned that the sector is facing critical business disruptions due to a growing shortage of raw materials needed to produce medicine. The industry is also facing difficulties in distributing finished products, with an estimated 50 tons of medicine and other medical supplies such as medical oxygen left stranded along the country’s highways by the end of May.
Affected companies have reportedly been forced to halt production of some medical products but no details have been released on what products might have been impacted. In total, the sector had suffered financial losses of Bs 40 million ($5.7 million / € 4.9 million) during the first four weeks of the unrest. Additionally, the industry could be at risk of further financial strain for failing to meet delivery deadlines in public procurement contracts, which could result in fines if not extended.
Agricultural Products
Economic losses have been widespread in the Cochabamba Department; a region located southeast of the La Paz Department.
Just two weeks into the protests, a representative of the Dairy Producers Foundation (Fundaprolec) in the Cochabamba Department warned that the sector had already accumulated financial losses of Bs 10 million ($ 1.4 million / €1.2 million), with daily losses caused by the road blockades estimated to be around Bs 2 million ($288,889 / €249,189). Several hundred trucks carrying corn, bran, and soybean hulls for the dairy farms were stranded due to road closures.
Around the same time, the president of the National Federation of Poultry Farmers warned that the blockades were causing transport delays, and that some poultry farms in the department were already at risk of running out of supplies such as feed. Poultry farms in the Cochabamba Department usually process around 1.2 million chickens per week.
Textiles
Lastly, textile producers in the department have warned that their inability to deliver materials and finished products is costing the sector tens of thousands of dollars.
Mining
The mining sector, one of the country’s main export industries, has also reported business and logistics disruptions due to the protests.
The mining committee of the Federation of Private Business Owners of Oruro (FEPO) claims that private companies in the industry lost exports worth $60 million (€53 million) during the first month of the unrest. According to the committee, the mining sector in Oruro also lost around Bs 50 million ($7.2 million / €6.3 million) in mining royalties due to the road blockades. Like the pharmaceutical sector, mining companies could face financial penalties if they cannot meet contractual delivery obligations, potentially putting further economic strain on the industry.
Previously, Marco Antonio Calderón, Bolivia’s Minister for Mining and Metallurgy, had warned that a lack of diesel and explosives caused by the road closures had already led to production halts at some mining sites, but did not specify which mines were forced to shut down.
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