Transportation Costs Affect Shrimp Industry

An increase of 24 cents per box for freight expenses has sent costs for shrimp producers in Honduras soaring.

Thursday, January 12, 2012

An increase of 24 cents per kilometer for each box transported, approved by a legislative decree recently, will seriously impact the competitiveness of Honduran shrimp producers with respect to other regional countries, signaled
employers in the sector.

"It will significantly affect the export of traditional products, in the case of shrimp, thousands of 4 pound boxes are transported," said the executive director of the National Aquaculture Association of Honduras (Andah), Marco Polo Micheletti, in an article in Tribuna.hn. "This is a disincentive and is pushing us out of the market. What do we do now with the production of 50 million pounds of shrimp?, Is it going to be consumed inside the country? ".

"We are competing with Ecuador, Mexico, Nicaragua and Costa Rica who have better incentives," said Micheletti. "We faced a serious problem with electrical power, fuel and now I don’t want to imagine the charges for transportation between Valle and Puerto Cortes."

A legislative decree approved an adjustment to the transport cargo, which now costs one dollar and 24 cents, higher than countries in the region like Nicaragua where they pay 88 cents. Annually Honduran shrimp exports generate about $200 million. The shrimp industry creates about 25,000 direct jobs.


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