Panama’s logistics service is threatened by protests

Maritime, Uncategorized
Servicio logístico

Inspenet, November 19, 2023.

The Maritime Chamber of Panama (CMP) and the Logistics Business Council (Coel) warned last Monday that some clients and shipping companies have begun to give up the logistics service in Panama due to the interruptions in the chain caused by the protests that have been ongoing for some time. weeks in rejection of the mining contract.

The president of the Maritime Chamber of Panama, Yira Poyser, pointed out in a press conference that these decisions could have “an impact on the country’s economy,” considering that this sector represents approximately a third of Panama’s gross domestic product and has a significant impact in the social and labor sphere.

In the current situation, according to the president of Coel, Hugo Torrijos, the logistics hub is experiencing significant damage due to the closure of land routes, which is hindering the flow of import and export cargo between Central America and cargo connected through air ways. This situation represents an estimated economic loss of $200 million per day .

In addition to generating congestion in transportation, the problem extends to storage and containers, which are blocked in ports. The magnitude of the inconvenience is aggravated by the difficulty in determining the exact number of containers stranded on the roads. Cancellations or cargo transfers to other destinations by international clients have already been recorded.

This has forced international clients to look for alternatives to transport their goods, either through sea or air transshipment, according to the president of Coel. Although clients do not communicate their decisions explicitly, the president of the CMP explained that the reduction in cargo movement will become evident when data is published indicating the amount of cargo that stopped moving.

This implies that the merchandise that used to use this route has chosen to go to other destinations. ” The information will be revealing when we observe that the percentage of cargo that previously transited our route could have decreased by up to 40% or 45% ,” he said.

The CMP and Coel agreed that the loss of clients occurs in the midst of a double paralysis that affects the sector, due to the water crisis of the Panama Canal and the effects on comprehensive logistics, which covers the railway, land and water sectors. .

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