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“Seek your<br />

connection and<br />

stay<br />

connected”<br />

Key determinants of container shipping, port and country connectivity<br />

The position of a port or a country within the global liner shipping industry is very dependant on following factors:<br />

Its geographical position, its captive or local cargo flows, its port facilities and the legal framework for liner<br />

shipping:<br />

Geographical position : Lying close to the main shipping routes or next to a large trading nation makes it easier for<br />

a port to attract liner companies and become a port of call. The Caribbean islands, for example, are closer to the<br />

main East–West and North–South routes than most SIDS in<br />

the Indian Ocean or the Pacific.<br />

Port characteristics : Shipping lines will be more inclined to connect a country’s ports to their global liner network if<br />

they can rely on modern infrastructure and efficient operations.<br />

This issue is also closely linked to the determinants of various transport cost. If the port is considered to be costly<br />

from the carrier’s perspective ,the carrier will also skip it and not call, or increase its<br />

freight charges to the shipper.<br />

Shipping rules and local legal issues : By liberalizing the cabotage, reducing bureaucratic barriers, and simply<br />

easing access, shipping lines will trend to call at those more “friendly” ports.<br />

Reefer trades in South America , an overview<br />

“What happens<br />

is not as<br />

important as<br />

how you react<br />

to what<br />

happens”<br />

There has been impressive growth in the demand for reefer exports from the west and east coasts of South<br />

America since 1995, and today, they export 30% of the global reefer trade.<br />

The export volume for the two coasts is the same, but the export composition differs. The export<br />

value for the east coast was 40% higher than that of the west coast due to its high share of meat exports.<br />

However, the export value for the west coast is expected to increase due to the recent recovery in exports of fish, a<br />

promising market with a high demand from Russia and the Far East.<br />

The most rapid increase in reefer exports since 1995 was observed on the east coast, where export volumes have<br />

grown three times as fast as those on the west coast, and Peru and Brazil are the fastest growing exporters.<br />

At present, Peru’s share of overall reefer exports is insignificant, but it is still important to bear in mind the<br />

country’s potential for growth in perishable production. The main export destination for both of the subregions is<br />

Northern Europe. Chile and Brazil, however, are the least dependent on this market. They have higher export<br />

shares in Asia and the Far East, regions which are becoming more important, because of the rapid growth of their<br />

populations and the increasing demand for perishable goods.<br />

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