The Argentinian foreign trade is facing severe hardships as shipping companies are now charging freights at the source due to a new scheme imposed by the country’s Central Bank. This change is leading to increased costs, endangering the competitiveness of exports, and potentially triggering a wave of layoffs in the logistics sector.
Central Bank’s New Regulations: A Roadblock for the Logistics Chain
Following the new foreign exchange restrictions implemented via Comm. “A” 7746 by the Central Bank, the players in the external trade logistics chain find themselves unable to operate normally in the exchange market. This is primarily because these restrictions inhibit their ability to pay and subsequently remit the freight charges collected in Argentina to their foreign beneficiaries.
This situation has put the Argentinian companies involved in the external trade chain in an impossible position. Given the prevailing context of exchange instability and rampant inflation that is currently plaguing the Argentine economy, none of these companies can absorb the risk of a loss in purchasing power during this period.
Impact on Shipping Companies: Maersk Leads the Charge
The first to announce these changes was Maersk, a Danish integrated shipping company, which has been collecting the services abroad since May 15, 2023. This decision was swiftly followed by other major shipping companies including Hapag Lloyd, Hamburg Sud (part of the Maersk Group), and the Mediterranean Shipping Company.
These changes are significant because these companies carry a substantial portion of Argentina’s external trade, and their decisions could set a precedent for other shipping firms.
Response from Argentina’s Maritime Logistics
In response to this development, executives from the Centro de Navegación, an institution representing Argentina’s maritime logistics, met with Patricio Hogan, the Deputy Secretary of Ports, Waterways, and Merchant Marine. Hogan committed to arranging a meeting with the Minister of Economy, Sergio Massa, in an attempt to find a solution to this issue.
The Impact on Importers and the Logistical Sector
In the meantime, importers have no option but to operate under the CIF (Cost, Insurance, and Freight) or CFR (Cost and Freight) modalities. Consequently, they are forced to finance the freight cost, which has added an extra financial burden.
Additionally, several logistics companies have already signaled possible staff layoffs due to these new restrictions. This is a worrying sign that could further exacerbate the already delicate social and labor situation in Argentina.
This situation calls for an urgent resolution, as a prolonged crisis could potentially destabilize Argentina’s external trade further and have a significant impact on the country’s economy.