Logistics Mismatch Pushing Costs Upward
Friday, March 5, 2021
Due to the imbalance in world trade flows, shipping lines have changed their routes and prefer to move empty containers to Asia, a situation that generates shortages and causes increases in freight rates and raw material prices.
In this scenario of new commercial reality, the operating costs of maritime freight have been impacted, since due to the restrictions imposed in several countries around the world, containers have been stranded.

In the last few weeks, trade flows have started to become more dynamic, however, there is a deficit of containers, since they are being transported empty to other parts of the world.

Julio Yon, member of the Board of Directors of the Council of International Transport Users of Guatemala (Cutrigua), told Prensalibre.com that "... 'the shipping lines are changing their routes because they prefer to move empty containers to India or China than to move other types of products, they have even changed the trend to products that were generalized, now they have prioritized perishables'."

In December 2020 CentralAmericaData predicted that in the first quarter of this year there would be a shortage of containers, a situation that was generated by the imbalance of global trade flows, which are still affected by the health and economic crisis caused by the spread of covid-19.

Paulo De Leon, director of Economic Intelligence of Central American Business Intelligence (Cabi), said that in this context "... the increase in the price of raw materials is global and the impact is transversal, because it is affecting raw materials such as resins, copper, iron, aluminum, agricultural products -corn, wheat, sugar- and wood. In the last three weeks, it was observed that prices are at the same level as four years ago."

Enrique Lacs, executive director of the Guatemalan Chamber of Food and Beverages, explained that "... the increase in raw material prices already has an impact on end consumer prices, because from December 2020 to February 2021 the food and beverage industry absorbed the rise, but 'they can't anymore'."

The latest FAO report highlights that during the second month of the year, the index that measures global food price levels reported a year-on-year variation of 17%, a rise that is explained by the behavior of prices of dairy products, cereals, vegetable oils and sugar.

Source: prensalibre.com
DO YOU NEED MORE INFORMATION ABOUT YOUR BUSINESS SECTOR?
Request more information:
Name*
Last Name*
Email:*
Telephone (choose your Country):*


Company:*
Title:*
Size of the Company:*
Industry:*
Yes, I want to receive a call from a salesperson*
Comments:*
this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423
Source: prensalibre.com
More on this topic
Logistics Costs Rising: Companies Aim at Brazil
June 2021
As a result of the global trade imbalance that has become evident in the last year and the considerable increase in logistics costs, Guatemalan importers are beginning to look to Brazil as an option to replace purchases from Chinese companies.
In early March of this year, CentralAmerica
Data
reported that as a result of the imbalance faced by world trade flows, shipping lines have changed their routes and prefer to move empty containers to Asia, a situation that at that
time already generated shortages and caused increases in transport rates
.
Coffee: Lack of Containers Affects Exports
May 2021
As a result of the imbalance reported in world trade flows due to the pandemic, Nicaraguan coffee producers have been affected by the shortage of containers facing the country.
Since the beginning of the year, the operating costs of maritime freight have been impacted, since due to
the restrictions imposed in several countries around the world, containers have been stranded
.
Increase in Raw Materials Costs: Which Sectors Will Be Affected?
April 2021
Salvadoran businessmen expect that at a local level the food, plastics and textile sectors will be the most affected by the increase in the prices of some raw materials and the prices of maritime freight.
This phenomenon has been announced for weeks. At the beginning of March, CentralAmerica
Data
reported that due to the imbalance faced by world trade flows, shipping lines have changed their routes and prefer to move empty containers to Asia, a situation that generates
shortages and causes increases in freight rates and raw material prices
.
Maersk and the Expanded Canal
April 2016
The shipping company has drawn attention to the impact that the Canal expansion will have on its operations noting that there are still only a few ports that can receive Post Panamax vessels.
The two routes that the Danish shipping company Maersk Line ceased to operate in 2013 were of great importance for Latin America, whose operations account for 10% of the company's total sales worldwide. The canal expansion is seen by the managers of the shipping company as a great opportunity to increase business in this region.
Goods
logistics services sea freight freight maritime services maritime transport commodities
Key entities
Central American Business Intelligence Paulo De León Cámara Guatemalteca de Alimentos y Bebidas (CGA) Consejo de Usuarios del Transporte Internacional de Guatemala
Countries
Central America
Insight
logistics cost logistics logistics operators maritime industry maritime sector maritime route maritime traffic commodities prices operation costsLogistics
RELACIONADO
maritime industry
maritime sector
maritime transport
maritime services
Logistics
Daily Update Government PurchasesDownload brochure (only in spanish)Trade Inteligence Subscriber Access NewsletterContact Us MarketDataMexico Español
2008-2021 © CentralAmericaData.com
Trade InteligenceWho we areContact Us