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May 25, 2022
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Increased freight rates for air and sea transport

Increased freight rates for air and sea transport

Although neither the COVID-19 pandemic nor the effects caused by the war between Russia and Ukraine completely affected the development of the supply chain of logistics distribution centers and freight forwarders, there is concern latent on the cost of freight at the international level, which continue to rise, reported the Dominican Association of Air and Maritime Cargo Agents (Adacam).

In general, the price of renting transport to move merchandise from the main international ports to the Dominican Republic continues to increase. The only ones that have reflected a decrease are those of articles from China, as a result of a strategy that that country executed, while it was in confinement, to maintain active international trade, he explained to Free Journal the president of Adacam, Ilsa Michelén.

He explained that prices fell by 35%, going from 17,000 dollars last year to 11,000 dollars, for a decrease of 6,000 dollars, which represents a relief for Dominican carriers.

When talking about distribution logistics, he said that the high cost of placing containers in Dominican docks could cause a disruption in the country’s supply chain and, therefore, would impact the price of some products and services.

The representative of the air and maritime transport sector spoke on the subject after her participation in the breakfast-panel “Logistics centers: opportunities for cargo agents”, in which various actors from the national cargo, shipping and port sectors participated.

Opportunities

During the development of the panel, the representatives of the sector exposed the need for young people to be interested in participating in this type of business in order to be the replacement and the future of the active participants.

Some of the gaps that can be used as a strategy to attract foreign investment for the free zone sector, for example, is the valuable work carried out by cargo agents, who must be prepared to sell the service offered by storage spaces. of the country’s international cargo carriers.

They explained that logistics centers can also serve as connection warehouses to export merchandise thanks to their location close to ports and airports, which reduces costs, time and connectivity.

The businessmen explained that, although a good job is being done in the country with logistics centers, specialized public policies are required for the cargo sector and greater efforts of public-private partnerships that drive the country to be more competitive in order to be a regional logistics hub.

Dominican journalist specialized in economics and finance, graduated from the Universidad Dominicana O&M.

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