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BiggerDominican shippers say expect higher fees
Santo Domingo.- One of the unexpected blows of the pandemic has hit the shipping sector directly, in a process of container shortages, delays in dispatches and intermittent port closures that have affected the entire trading system internationally.
One of the results of the imbalance between the capacity of goods shipments and the triggering of demand by consumers has resulted in a jump in freight prices and effects on the usual maritime trade routes.
Representatives of the Association of Shippers of the Dominican Republic indicated that it is still possible that freight rates rise “a little more.”
The laws of supply and demand are ruthlessly enforced in the shipping and container market, and vessels transit more safely to the ports of those willing to pay more for freight shipments.
“We are paying US$13,000 to US$14,000 for a container and it is very possible that, because Americans pay U$20,000 for each one, that freight will go up a little bit more,” Teddy Heinsen, president of the Association of Shippers, told Diario Libre.
There are many reasons for the shortage, some of which are, the slowdown of worldwide economies, less container vessels on the seas, port congestion creating backups, containers being tied up in Chinese ports, and the law of supply & demand firing up price competition for acquiring available containers.
All of the above has impacted the Dominican import/export trade. What can be expected are price increases for RD import/export trade being passed down the chain to its public.