Friday, 22 October 2021 13:52

Freight costs from US$3,000 to US$20,000 from Asia to El Salvador

Written by Evelyn Alas

This morning, the President of the Corporación de Exportadores de El Salvador (COEXPORT), Marvin Melgar, together with the Executive Director of this association, Silvia Cuellar, reported in a morning interview that before the purchase of freight cost US$3,000 and now it is costing up to US$20,000 for containers imported from Asia to El Salvador via maritime transport.

In addition, the President of COEXPORT, Marvin Melgar, said that this year has been an inflationary year, which has seen an increase in the price of commodities, including oil, causing the prices of raw materials to rise and affect the basic food basket.

It has even been suggested that the growth in exports and imports is not due to the quantity of raw materials or products, but because the price of shipping or imports of products are those that have increased in value. He also pointed out that this affects the users' ability to pay, causing consumers to buy fewer products than usual.

Commodities are raw materials produced or already existing naturally (with or without processing) in large quantities that have a concrete value or utility at a productive and commercial level.

For example: the most important are Grains: Soybeans, wheat, corn, oats, barley. Softs: cotton, orange juice, coffee, sugar, cocoa. Energies: Crude Oil, gasoline, natural gas, ethanol, naphtha. Metals: Gold, silver, copper, platinum, aluminum. Meats: Live Cattle, live swine, lard, milk.

The behavior of accumulated exports of goods in 2019, were US$4,502 million in 2021 have grown US$4,928 million data provided by the Banco Central de Reserva (BCR).

COEXPORT leaders point out that textiles, apparel and everything related to the maquila industry are the ones that allow exports to take a step towards sustainable growth.

COEXPORT Director, Silvia Cuellar, indicated that the country needs to export for greater competitiveness and better economic growth. "More added value brings you more foreign exchange income", she said.