He warned, however, that a prolonged conflict could put further pressure on international fuel prices, especially in air transport
SANTO DOMINGO – While the conflict in the Middle East continues to disrupt international trade and raise transportation costs in various regions of the world, the Dominican Republic maintains relative stability in its logistics operations, particularly in maritime transport, thanks to the fact that its main trade routes do not cross the areas affected by the crisis, stated the Dominican Association of Air and Sea Freight Forwarders (Adacam).
The statements were made during the conference "The New Era of Logistics Outsourcing: Global Trends and Opportunities for the Dominican Republic," organized by Adacam, where representatives of the sector analyzed how geopolitical tensions are changing global supply chains and the challenges facing international trade.
The president of the entity, Jean Louis de Boyrie, explained that, although the conflict has caused increases in the costs of international transport, especially due to the volatility of fuels, the impact on maritime freight connecting with the Dominican Republic has been limited.
According to him, this situation has prevented variations in maritime tariffs from generating a chain of increases in national logistics costs or significantly affecting the competitiveness of Dominican exports.
"In the first stage of the conflict, the greatest impact was felt in air transport, particularly in parcel delivery and some agricultural exports. In maritime transport, the increase has been proportionally low," he stated.
However, he warned that a prolonged conflict could put further pressure on international fuel prices, especially in air transport, where fuel represents one of the main components of operating costs.
Air transport, the most exposed segment
De Boyrie explained that, unlike maritime transport, the air transport sector is much more sensitive to oil fluctuations, so any increase in fuel prices can be reflected in the costs of parcel delivery, exports and other cargo services.
He also noted that freight forwarders act as intermediaries within the logistics chain, so any adjustments made by shipping lines or airlines end up being passed on to the final customers.
Free trade zones maintain competitiveness
Also participating in the meeting was the executive director of the National Council of Export Free Zones (CNZFE), Johannes Kelner, who agreed that maritime transport costs have shown fluctuating behavior during the last few months, although without compromising the competitive capacity of the export sector.
He explained that, after registering high levels months ago, freight rates have begun to stabilize.
Kelner pointed out that, within free trade zones, the textile industry continues to be one of the activities most exposed to any increase in the cost of maritime transport, due to the volume of goods it moves through containers.
Recommended readings:
- Shipping rates reach their highest level in almost two years, putting pressure on import costs to the Dominican Republic
- Despite rising maritime freight rates, Dominican shipping companies say rates remain stable so far
- Increases in maritime freight costs could drive up construction material prices, warns ADOIMFE
