Freight Rates in Central America

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Freight Rates in Central America

Transporting one metric ton of goods in Central America is estimated to cost $0.17 per kilometer, while in developed countries the cost is around $0.10 per kilometer.

Monday, November 19, 2018

Transporting cargo more efficiently remains the greatest challenge that the countries of the region face to improve their competitiveness. According to data estimated by the United Nations and validated by the Economic Commission for Latin America and the Caribbean, currently the costs that companies incur to transport cargo in Central America are up to 40% higher than the costs assumed in some developed markets.

Leroy Sheffer, managing partner at International Trade Advisory Services-Itas, explained to Elcapitalfinanciero.com that "... transporting goods by land represents 30% more costs in Central America. 90% of the goods leaving or transiting through the region are made by land, a fact to be considered when generating common policies in a region whose population is estimated at 50 million inhabitants (potential consumers) by 2025."

Sheffer added that "... it' s okay to talk about strengthening the free movement of goods and services, but the advanced world is concentrated in the so-called megatrends and Central America cannot ignore them if wants to generate business opportunities. For example, there is a focus on managing resilience in supply chains (how quickly we can recover from events such as strikes or port shutdowns); digitization, blockchain and e-commerce."

Regarding the impact on costs generated by political crises and other eventualities in the region, in July Guatemalan businessmen reported that because of the Nicaraguan crisis affecting since mid-April, increases were reported in their transportation costs because of the challenges of transiting the territory in conflict. See "Cost of Freight Transportation Becomes More Expensive"

In April this year, Elnuevodiario.com.ni published an article in which it explained that "... the transport cost of one ton of a product per km in Central America is 0.17 dollars, eight times higher than that paid in the United States (USD 0.02)."

 

https://www.centralamericadata.com/en/article/main/Freight_Rates_in_Central_America