SANTO DOMINGO – The recent increase in maritime freight rates, driven by geopolitical tensions in the Middle East and adjustments made by several international shipping companies, is beginning to generate concern among importing sectors that depend on trade with Asia to supply the local market.
In recent weeks, shipping companies have implemented various surcharges related to increased operating costs, risk premiums in conflict zones, and the rising cost of fuel used by vessels. This situation has led to a slight increase in international container shipping rates, following several months of stability and even price declines.
Data from the Global Container Index, compiled by logistics consultancy Drewry, shows that global rates have recently increased, driven primarily by the growth in trade routes connecting Asia with other markets. While the increase is not yet at extraordinary levels, the behavior of the logistics market is keeping companies that depend on importing raw materials and finished goods on alert.
Dominican importers react
In the case of the Dominican Republic, importers are cautiously monitoring the evolution of these costs, since any sustained increase in maritime transport can have direct repercussions on the price structure of numerous products.
The president of the Dominican Association of Hardware Importers (ADOIMFE), Antonio Pappaterra, explained that in the weeks leading up to the Chinese New Year, maritime rates from Asia reached particularly low levels, even below the records observed after the pandemic.
He explained that this behavior was part of the usual dynamics of international trade, as many factories reduce their activity before the celebrations in China, which usually causes a temporary drop in demand for maritime transport.
“In the two weeks leading up to the Chinese New Year, we saw maritime tariffs from the East at their lowest post-pandemic levels,” he noted.
However, after the reactivation of industrial activity in that Asian country, rates began to show a progressive rebound, something that, according to the business leader, was foreseeable within the normal cycle of the logistics market.
“After the Chinese New Year, prices began to rise, which was to be expected. Currently, maritime rates available for the coming weeks reflect increases, but remain within normal average values,” he stated.
It warns of potential pressures on international costs
Although the increase is not yet considered critical, Pappaterra warned that the evolution of the conflict in the Middle East could generate new pressures on international transport costs.
“We understand that rates could increase even further due to the effects of the war,” he said.
The hardware industry leader explained that, in addition to the direct impact on freight costs, other factors could increase the cost of international trade in the coming months. Among these, he mentioned the projected increase inproduction costs in China, both for raw materials and finished goods.
China is one of the main suppliers of materials and items used in thehardware sector , so any variation in manufacturing or transportation costs has the potential to influence the local supply chain.
Eliminating incentives in China could also have an impact
Another factor that, according to Pappaterra, could affect prices is the recent elimination of a tax incentive granted by the Chinese government to certain manufacturing industries.
This refers to the so-called tax rebate, a mechanism by which the government refunded a portion of the taxes to exporting manufacturers. In some sectors, such as sanitary ware, this benefit represented a refund of up to 9%.
Eliminating this incentive could result in higher costs for producers, which would eventually be reflected in the price of exported goods.
For Dominican importers, the combination of these factors—increased freight costs, higher production costs, and changes in the tax policies of supplier countries—creates a scenario that demands constant monitoring.
Although maritime rates currently remain within ranges considered normal by the sector, the evolution of the international situation and the decisions of the major shipping companies will be key in defining the behavior of global trade in the coming months.
Meanwhile, importing companies and local distributors remain attentive to any changes that may affect logistics costs and, consequently, the final price of products arriving in the Dominican market.
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