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Disadvantageous coasting trade after El Niño

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Source: Semana Económica

Maintaining coasting trade during the El Niño Costero (Fen) phenomenon is disadvantageous due to its high costs, as well as the lack of infrastructure and adequate logistics, said Juan Carlos Paz, sea transport director of the MTC.

The current costs of coasting trade are three times higher than land transport, says Paz. In addition, “a maritime transfer from Lima to Trujillo takes an average of five days between crossing and disembarking; the freight (by land) takes two”, states Francisco D’Angelo, executive VP of Yobel SCM. For Ángel Becerra, director of GC1, the regulations limit the jurisdiction and the impact of coasting trade. “The MTC is working on a draft act and the development of logistics platforms to promote coasting trade”, Paz said.

Even so, coasting trade could remain as an option for future emergencies. “It is a viable alternative to supply the areas affected by the FEN”, said D’Angelo. Ports such as Salaverry and Paita in the north, which was cut off from the center of the country due to damage to the Panamericana highway, had higher flows thanks to the measure (SE 1562). “1,200 containers have been transported up to date. There was a ship for coasting trade in Peru before the decree; today, there are ten”, said Edgar Patiño, president of the National Port Authority. In fact, its effectiveness led the Executive branch to extend the 90-day coasting trade period (originally approved for 30 days). (ARB)

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