Logistics Costs Rising: Companies Aim at Brazil

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.

Thursday, June 17, 2021

In early March of this year, CentralAmericaData 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.

In this scenario of low profit margins, Guatemalan businessmen are already analyzing other options to import products by the end of the year, such as doing business with Brazilian companies.

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Gabriel Escobar, general manager of Ranero Logistic, told Prensalibre.com that "... since the beginning of the month importers began to place their orders to factories in China and the payment of advances to ship the goods, however, I confirm that the increase in freight costs is a concern that may reduce volumes."

Escobar confirmed that "... other importers are analyzing purchasing options in Brazil, for footwear, clothing, toys, and other goods for the end of the year season, as a substitute for suppliers from China, while those traders who have inventory that they did not manage to place in 2020, will now market it."

Usually in June, Guatemalan importers make the liquidations of the goods that are imported and that will be marketed in October, November and December.

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