Central America and The Cost of the Crisis

With the paralyzation of the cargo transport and the retention of about 6 thousand units in Nicaragua, the region is starting to feel the effects of a crisis with no potential solution in the short term.

Monday, June 11, 2018

The crisis in Nicaragua has created high costs in all countries in the region, as according to the latest report it is estimated that at least some 6,000 heavy cargo vehicles are trapped due to the violence and blockades that have intensified in the last weeks.

In order to avoid getting trapped on Nicaraguan roads, last weekend the National Customs Authority of Panama suspended departure of cargo that is distributed by land from the Colon Free Zone to almost all of Central America.

See articles from La Prensa de Nicaragua: "More than 6,000 international cargo trucks trapped in Nicaragua" and "Panama halts cargo shipments to Central America due to crisis in Nicaragua"

For its part, the Costa Rican industrial sector, " ... suggested respectfully to the Government of the Republic, to Chancellor Epsy Campbell, that it would be appropriate and timely to analyze a call to the relevant international organizations, such as the OAS, in the corresponding forums, so that the Nicaraguan situation can be acted on quickly".

See also "Complicated Economic Outlook" and "Regional cargo transport trapped in Nicaragua".

From a statement issued by the Chamber of Industries of Costa Rica:

Monday June 11, 2018.  The Chamber of Industries of Costa Rica respectfully suggested to the Government of the Republic, to Chancellor Epsy Campbell, that it would be appropriate and timely to analyze a call to the pertinent international organizations, such as the OAS, in the corresponding forums, to to act quickly over the situation in Nicaragua, which if not addressed urgently, could get even more out of hand. The ICRC also recognized and celebrated that the Government of Costa Rica has been in a position to call for a dialogue that will lead Nicaragua to recovering the peace it has lost. 

The blockades are affecting the Costa Rican industrial sector. The sector explained that the obstruction of the free transit of merchandise is already sensitively affecting exports to Nicaragua, El Salvador, Honduras and Guatemala.

Read full release (in Spanish).

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More on this topic

Crisis and its Impact on the Region

October 2018

The complex economic and political situation that has affected Nicaragua since April continues to affect Central America, where exporters report losses of $45 million.

In the past months, cargo transport faced difficulties in moving goods along Nicaragua's highways due to demonstrators' blockades and insecurity, seriously affecting Central American companies.

Crisis Affects El Salvador - Nicaragua Trade

August 2018

It has been estimated that since the crisis began in Nicaragua, losses in trade between Nicaraguan and Salvadoran companies amount to $12 million.

The cheese and milk trade is the area that has been most affected by the socio-political crisis occurring in Nicaragua. According to representatives from the Ministry of Economy of El Salvador, losses in bilateral trade not only of cheese and milk, but also of other goods, amount to $12 million.

Regional Trade: Options for Overcoming the Crisis

June 2018

To be able to ship cargo throughout the region, Central American business leaders are exploring options for moving goods using alternative methods, such as shipping.

Representatives from the Costa Rican government and the union of exporters met to address the issue of blockades in Nicaragua and the logistical drawbacks that they have caused, since Costa Rica transports by land about five thousand containers to the other Central American countries every month. As a result of this meeting, both parties concluded that the most viable option is to use maritime transport.

Central America Transports Road Freight at 15Kph

September 2016

A rise of up to 25% in the value of the cargo, and possible total loss is the result of the slowness with which goods are transported through the region.

"Four times slower than the world average" is the speed at which the terrestrial cargo moves through Central American countries according to Jaime Granados, from the Inter - American Development Bank (IDB).

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