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The Argentine Agroindustrial Council warned that the increase in freight costs seriously affects maritime exports.

The Argentine Agroindustrial Council warned that Argentine foreign trade has been experiencing problems in maritime logistics and exports from various agricultural sectors are paralyzed.

As stated in a statement, the beginning of this “collapse was a succession of scrolls (displacement of loads from one ship to another later and / or later), reaching delays of more than six weeks, and continued with the cancellation of bookings (freight contracts between private exporters and shipowners – owners, operators of the ships), abrupt increases in rates after these cancellations, where the values ​​of the freights in certain traffics were multiplied by 3, 4, 5 and up to 8 times the usual value that for years were the market values, determining large losses for exporting companies, since to a greater or lesser extent they operate in future cargoes and that is why freight contracts are closed as sales orders are confirmed “.

The Argentine Agroindustrial Council considers that these changes in values ​​severely affect agroindustrial products, mainly those of low export value, since the freight that historically meant between 5 and 10% of its cost and freight value, today can reach impact in a range between 20 to 50% of the cost and freight value of the merchandise, its retroactive effect being even more serious, since the new rates were applied to contracts already negotiated and canceled by the shipowners, unilaterally. “The retroactivity of unilateral changes to freight contracts applied by some shipowners is not considered reasonable, beyond the existing global problems,” they stated.

“Faced with this reality, agroindustrial exports from various sectors are paralyzed, due to the lack of predictability of spaces on ships as well as changing freight values; added to the fact of the existence of an important stock of merchandise already marketed that At the moment it does not have transportation options, “they said.

As they pointed out, there is permanent dialogue with the Navigation Center and with the National Government, although they remarked that “the situation worsened,” and asked to work together to restore foreign trade “as soon as possible.”