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.
After the Quetzal Port Company of Guatemala and the Port of Chiapas, Mexico, signed an agreement for strategic commercial promotion, it is expected that in May the short sea route will begin to operate.
The potential offered by the Port of Chiapas as a logistic node for commercial exchange from and to Central America, as well as with other international markets, makes it a strategic place for the promotion of the Short Sea Shipping (SSS) project with Guatemala and eventually with other Mesoamerican countries, informed the Mexican Secretariat of Communications and Transport (SCT).
From September 27 to 29, companies from the sector will be meeting to discuss issues such as bunkering and environmental impact, ports and shipping lines, cargo transportation and the auxiliary maritime industry.
From a statement issued by the Maritime Chamber of Panama:
The Maritime Chamber of Panama, for the education and updating of the maritime, port and logistics sector of our country, will be holding, from September 27 to 29, the First Annual Maritime Conference of Panama entitled "The Next 100 Years" within the framework of the 100 year anniversary of Panamanian ship registration.
The shipping company has drawn attention to the impact that the Canal expansion will have on its operations noting that there are still only a few ports that can receive Post Panamax vessels.
The two routes that the Danish shipping company Maersk Line ceased to operate in 2013 were of great importance for Latin America, whose operations account for 10% of the company's total sales worldwide.
In order to analyze the impact that Panama Canal expansion will have on this sector it is necessary to dissect the current numbers on movement and transshipment of containers in Latin America.
From a report by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC):
Trade in container ports in the region up 1.3% in 2014
Ranking updated by USI / ECLAC confirms the slowdown in foreign trade shown by the container terminals in Latin America and the Caribbean in recent years. The movement of containerized cargo at ports in Latin America and the Caribbean grew by 1.3% in 2014, according to data released today by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). This year's ranking of movements in container ports confirms high heterogeneity: the west coast of South America is up (5.3%), Mexico (4.0%) and Central America (3.4%), but the East Coast of South America (-2.2%) and the Caribbean (-8.2%) are down.
Shipping companies are preparing to increase by between 10% and 12% the rates for maritime transport from Guatemala to the United States.
These increases have yet to be confirmed by the Federal Maritime Commission of the United States, explained Rolando Coronado, president of the Shipping Association of Guatemala, but the export sector predicts a deterioration in competitiveness.
From June 16th to 19th representatives from the region's port industry will be meeting in Panama at the XXXVII Port Meeting of the Central American Isthmus.
From the website of the Central American Commission on Maritime Transport (COCATRAM):
Representatives from the Central American Commission on Maritime Transport (COCATRAM) will be meeting in Panama from the 16th to 19th of June to participate in the XXXVII Port Meeting of the Central American Isthmus (REPICA).
Quetzal Port Company is offering a special rate with discounts up to 50% for ships carrying cargo whose origin and destination is Central America.
This project seeks to promote short sea shipping between the ports of Quetzal in Guatemala, Acajutla in El Salvador, Corinth in Nicaragua and Caldera in Costa Rica, and in this way reduce land freight traffic between countries in the region.
A feasibility study indicates that the region has economic and port potential to develop a system of short sea shipping.
After evaluating 49 ports with international traffic in the region, a feasibility study prepared by the Mesoamerica Project concluded that no large investments in access infrastructure are needed in order for ports to boost regional shipping.
The preliminary results have been released from a feasibility study on the development of a Short Sea Shipping service in Mesoamerica.
As part of this project, a feasibility study was conducted over the last 12 months, which assessed the movement of cargo from ports with international traffic in the 49 countries that make up the Mesoamerican block (Mexico, Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Colombia and the Dominican Republic).
Assessment of Port Performance and Port Connectivity Study in Belize, Central America and the Dominican Republic.
This study focuses on identifying the basic logistics capabilities in Belize, Central America and the Dominican Republic.
It concentrates on the ports and sea network, taking into consideration intermodal networks involving both land and sea components together with the major performance drivers of intermodal networks including geography, infrastructure, regulations and trade requirements.
The rise in logistics costs has a higher impact on businesses who export fresh produce.
On 1 January an increase came into effect of approximately 10% in the cost of shipping a container with cold storage leaving from Costa Rica.
According to an article in Nacion.com, companies that will be affected by the increase of approximately 10% are those who export fresh produce such as fruits and vegetables.
Developing the region's short distance cargo and passenger sea travel could lower costs and favor agricultural exports.
Central America's short distance maritime transport project (TMCD, Spanish Acronym) is advancing. Feasibility studies have determined that with little investment, the 49 ports located in Central America and Mexico, "could be adapted for short distance passenger and cargo transportation, as it is done in Europe".