2024-09-13 17:17:08
The cost of container transport from China has increased significantly in the first half of 2024, affecting the logistics sector and the prices of imported products in Ecuador. This increase, together with other global factors, has generated concern among actors in the sector.
Vanessa Bajaña, general manager of the International Cargo Unit of Grupo Torres & Torres, analyses the situation and its possible solutions.
The cost of freighting a container from China, Ecuador’s main trading partner, has risen from approximately $2,000 to nearly $8,000 in the first half of 2024. This fourfold increase is due to various factors and directly affects taxes and tariffs, since the taxable base for calculating foreign trade taxes includes the value of the merchandise, freight, and insurance. This increase has been observed since the beginning of 2024, with a significant peak in maritime freight costs starting in April. Ecuador’s ports, which handle a considerable load of imports, have seen an increase in cost and delivery times due to this situation.
The causes of the increase include the drought in the Panama Canal since the end of 2023, caused by the El Niño phenomenon, which slowed the crossing of ships. In addition, the war in the Middle East and attacks on merchant ships in the Suez Canal have forced shipping companies to take longer and more expensive routes. The anticipated demand for imports from China by the United States and Europe, together with the increase in tariffs imposed by the United States on Chinese products, has prioritized cargo to that country, leaving Latin America in the background. Additionally, the shortage of containers and space on ships, as well as congestion in international ports, have exacerbated the problem. During the pandemic, the closure of ports and the alteration of itineraries caused an increase in the cost of maritime freight, a situation that seems to be repeating itself.
The increase in freight costs has increased the prices of imported products, especially raw materials, directly affecting consumers and businesses in Ecuador. This increase also translates into higher logistics and customs costs, delays in the delivery of goods and possible breaches of contract.
Ecuadorian ports have experienced congestion, with ships arriving outside their scheduled times and, in some cases, diverting to nearby ports in Peru or Colombia, increasing transport times and costs, as well as causing economic losses due to delays and shortages of products, especially during peak seasons such as the Christmas holidays. By 2025, a stabilization of the international port situation is expected, depending on the operation of the Panama Canal and the resolution of conflicts in the Suez Canal. The opening of the port of Chancay in Peru could improve the situation, offering a direct route between China and Latin America, reducing logistics times and costs.
In the meantime, the importing sector must anticipate its purchase orders, ensure adequate inventory stocks and review delivery fulfillment contracts to mitigate adverse economic effects. Searching for suppliers in international markets with less logistical impact can be a viable strategy to face these challenges.