Finance

Shipping Companies Raise Cargo Rates For Transporting Goods From The US To Venezuela

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According to three industry sources and two documents, the cargo rates for transporting goods from the United States to Venezuela has been raised by two major shipping company this month. The reason is said to be because the U.S has sanctioned limit transit between the two countries.

Earlier on May 15, direct flights were banned between Venezuela and the United States which includes both passenger and cargo flights. The department of home security in the United States said that the ban is on because the condition in Venezuela raises threat to passengers, crew, and aircraft traveling to or from the country. The last airline operating was American airlines, which has now stopped its services to Venezuela with effect from March 2019. The United States said that the ban decision was made based on several factors which include reports of violence in and around the airport and failing to conduct required security checks. The sanctions have pressurized the president of Venezuela, Nicolas Maduro to resign from the position.

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Because of this hike, the major segment which is going to affect is the citizens and the social service organizations. Because basic food items and medicine in the hyperinflationary country depend mostly on air and sea shipments, as a result of U.S sanctions, around 4000 people may have died in Venezuela because of lack of access to food, medicine, and medical treatments. In a hyperinflationary country, a monthly wage cannot even bear a single meal cost.

Even though the shipping company knows the nation’s situation, they have levied a surcharge of $1200 per container. As per documents the shipping companies Hamburg Sud and King Ocean services will levy this service charge on the cargos after May 15. Two sources at local ports revealed that the cost of services is now between $3000 and $5000 depending on the cargo.

A shipping industry source said that the reason behind the increase in the cost is because of the sanction in place and there is a huge risk in delivering goods in Venezuela.

Earlier in 2016, the service charge of the shipping lines went up to three times more for traveling to Venezuela wherein the service charge in other South American countries was normal. However, the U.S sanctions do not prevent the cargo from delivering goods to the nation. Earlier in April, Washington sanctioned nine oil tankers and four shipping company saying that it was involved in the oil shipments to Cuba.

Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.

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