Strike and Economic Losses

Exporters resent the effects of five continuous days of demonstrations, blockades and widespread insecurity on the roads of Costa Rica.

Friday, September 14, 2018

Before the strike, which was started a few days ago by unions representing the country's public institutions, the Chamber of Exporters of Costa Rica (Cadexco) denounced the fact that companies in the sector are facing multiple difficulties in exporting their products. Puerto Moín, the main outlet for exports, is only operating six hours a day, leaving close to 12,000 tons per day unable to be shipped, which is estimated to be equivalent to almost $10 million in daily sales abroad.

See "Privileged announce strike"

From a statement issued by Cadexco:

San José, September 13, 2018. The Chamber of Exporters of Costa Rica (CADEXCO), sees with concern the effect on the sector of four days of national strike, as a result of insecure transport of merchandise, difficulties in shipping for the 687,000 collaborators, road blockades in different parts of the country, and the operations at Puerto Moín.

During the first two days of the movement, companies that use the Moin port managed to implement logistic protocols in order to ship their goods on time, however after occurrences of insecurity, some exporters reported limited ability to transport cargo bound for Limón after 3:00 pm, because insurance policies for the containers do not include looting or fire due to vandalism.

The companies are complying with this measure due to the insufficient police presence on the route from Siquirres to Puerto Moín that would guarantee the safety of the drivers, cargo and vehicles; This is forcing them to adjust production processes in order to avoid build up of merchandise within companies. In the case of containers carrying fresh products and which are already in the port waiting to be shipped, they must be hooked up to electrical outlets which involves an extra cost of approximately $100 per container per day.

On top of that this port is only operating six hours a day, which means a reduction of 11,846 tons in shipments, which is equivalent to $9.38 million of our daily exports. The reduced port services is causing uncertainty for international clients affecting our credibility with buyers and having repercussions for the country's image.

"The great problem of roadblocks in different parts of the country is significantly impeding the work of companies in rural areas, especially in the north and south, as well as in the Greater Metropolitan Area, which face impediments when transporting employees and goods, which can cause losses of fresh products, cancellation of international contracts, additional expenses for the use of alternate routes and impediments to the arrival of 687 thousand workers nationwide.

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