Guatemala: Less Cargo Transport Insurance

Companies prefer to hire private guards or outsource transportation of goods instead of purchasing insurance, sales of which fell by 38% between January and October compared to to the close in 2013.

Wednesday, November 5, 2014

According to the American Federation for Transport (Fecatrans), only 20% of their members have insurance against damage, theft or loss, because it raises costs which must then be transferred to the final price, meaning that the majority only take out insurance for third party damage in order to keep prices at competitive levels.

Hector Fajardo, Fecatrans manager told Elperiodico.com.gt that "... The decision to protect the goods is up to the owner, while vehicle safety itself is the responsibility of transport owners. If the carrier chooses to include transport insurance the cost of the transport would rise ten times more than the cost of the product. "

Bernardo Pineda, assistant manager of the Insurance company La Ceiba, added "... Over 75% of companies do not have their own transportation, and largely choose to hire security guards on trucks, GPS systems, and escorts."



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October 2015

Carriers are warning that an epidemic of theft of containers that primarily affects El Salvador, Guatemala and Honduras, may be starting to affect Nicaragua.

The president of the Central Transport Federation (Fecatran), Marvin Altamirano, told Elnuevodiario.com.ni that "...

In Central America, Cargo Can Not Be Transported at Night

October 2014

While firms are losing competitiveness by transporting goods only during daylight hours and spending thousands of dollars on private security, regional bodies are writing in their brochures "borders open 24 hours a day."

The inability to move at night time due to attacks by organized criminals on the roads in the region affects not only businesses but the entire transport chain.

Carriers reject increase in compulsory insurance  

July 2014

Freight companies in Nicaragua say with the introduction of new rates the cost of insuring a truck for damage by third parties has increased from $85 to $295.

Between $45 million and $50 million more is the estimated amount that will have to be paid by freight business to ensure the trucks to comply with amendments to the Law for the Traffic Circulation Plan and Traffic Violations.

The Cost of Insecurity in Logistics

September 2012

Insecurity in the Central American countries increases the costs of land freight transport; in the last year alone it required an additional $20 million.

Hiring private security guards, patrols and assisted GPS satellite systems are some of the costs that need to be paid in order move goods in Central America.

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