After the difficulties generated by the restrictions imposed by Costa Rica on the entry of cargo from neighboring countries were overcome, the Costa Rican pilots denounce that the authorities of the region, far from applying reciprocal measures, have established "repressive measures."
Ten days after the gradual return to activities at El Salvador's freight terminals, logistics companies report delays in deliveries due to saturation in the warehouses.
Because the freight terminals at the Oscar Romero International Airport and the Port of Acajutla worked part-time for almost three months due to the covid-19 outbreak, a bottleneck was created that now affects cargo and logistics companies.
Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.
As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.
Although the region's markets are not yet facing a scenario of shortage of raw materials or products, the restrictions imposed on freight transport are destroying the regional logistics chain.
Given this scenario of health crisis, the free transit of goods in Central America has been interrupted in recent weeks.
Faced with the advance of the coronavirus epidemic, businessmen in the region are asking citizens to follow only official recommendations to avoid giving way to disorienting versions that only contribute to generate instability and uncertainty.
In Central America, two countries have registered people infected with the virus. Costa Rica was the first to report cases of COVID-19 (also known as coronavirus) and so far the nation has registered nine infected people. Panama made its first case official on 9 March.
Because of restrictions on the movement of heavy cargo in Guatemala City and the high cost of land, more and more companies are choosing to move their operations to neighboring municipalities.
According to estimates by directors of the developer Calidad Inmobiliaria, the cost of land has risen significantly in the country's capital, since in the areas near Atanasio Tzul and Petapa Avenue, in Zone 12, the cost of the square fence is over $350, while in the municipality of Amatitlán it ranges between $100 and $150.
Investment in more sophisticated equipment, preparing human capital for knowledge generation and coordinated decision making between government and business, are some of the areas that Panama has to work on in order to continue competing globally.
The country depends largely on the economic activities of the logistics sector, as it contributes about 33% of the Gross Domestic Product. However, the intense competition at a global level has forced Panama to face multiple challenges.
Since mid-July, the main companies transporting maritime cargo from the Port of Santa Tomas in Guatemala stopped operating the direct route to Europe, which will raise between 20% and 25% the costs of imports and exports.
After six decades of keeping the direct route to European ports in operation, the main shipping companies departing from Puerto Santo Tomás de Castilla in Izabal such as Maersk, Hamburg Sud, MSC, CMA-CGM, Hapas Lloyd and Sea Trade, decided not to re-operate the route concerned, leaving only one company with a multipurpose transport ship as an option to move cargo to Europe.
Urbano Express, dedicated to parcel services, storage, outsourcing of couriers and delivery of valuable products, reported that it bought the PCH Cargo company.
Representatives of Urbano Express explained that with the acquisition of PCH Cargo, will become the first integrated logisticscompany in El Salvador, from import, customs formalities, storage, order preparation, delivery of the last mile, to the collection of this.
In Nicaragua, the guild of transporters reports that in the customs of the country is reviewed 40% of cargo trucks, a situation causing delays because the international standard is to inspect a maximum of 10% of units.
Managers of the Association of Nicaraguan Transporters (ATN) reported that since the beginning of the political and social crisis in the country in April 2018, the time for a truck to enter Nicaraguan borders has increased and carriers can spend up to a day.
In order to successfully market fresh food, in addition to an attractive presentation to the market, good logistical performance is essential, which is expressed in terms of freshness, availability, and reasonably low logistical costs.
The fresh food sector is booming within the general food trade. For the success of its commercialization, besides an attractive presentation for the market and being able to offer a wide variety of products, also a good logistic performance is very important, which is expressed in terms of freshness, availability, and reasonably low logistic costs.
The costs incurred by businessmen in Nicaragua, because of excessive procedures and low efficiency of foreign trade systems is 25% additional to the value of the goods, while in El Salvador and Costa Rica, amounts to 18% and 16%, respectively.
A study by the Economic Commission for Latin America and the Caribbean (ECLAC) specifies that the costs paid by businessmen in Nicaragua, because of excessive procedures and low efficiency of foreign trade systems is 25.3% additional to the value of the goods, followed by El Salvador with 18.3%, Costa Rica with 16.3%, Honduras with 15.8%, Guatemala with 14% and Panama with 9%.
Transporting one metric ton of goods in Central America is estimated to cost $0.17 per kilometer, while in developed countries the cost is around $0.10 per kilometer.
Transporting cargo more efficiently remains the greatest challenge that the countries of the region face to improve their competitiveness.
Increased cargo traffic, improving the availability of water for the passage of ships and construction of the rolling cargo port, are some of the challenges the authorities of the interoceanic route face for the coming years.
Representatives from the Panama Canal Authority reported that the levels of traffic currently being reported have already reached the figures expected to be reached in 2020.
Companies from the logistics sector will be meeting in Panama City on October 18 and 19 to exhibit their products and services and take part in business conferences.
The event is being organized by the Chamber of Commerce, Industries and Agriculture of Panama (Cciap) in conjunction with the National Secretariat of Science, Technology and Innovation (Senacyt), and will be held at the ATLAPA Convention Center.
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