How Restricted Maritime Services Disrupt Supply Chains in Argentina and Uruguay

Argentina and Uruguay’s maritime logistics sectors have recently encountered considerable hurdles due to constrained access to vital shipping services. This limitation has not only slowed down supply chain operations but also escalated transportation expenses,undermining the competitiveness of businesses dependent on maritime trade. As both countries’ economies advance, the scarcity of reliable shipping alternatives emerges as a pressing challenge for exporters and importers striving to maintain efficient market connections.

• Diminished Vessel Availability: A reduced number of ships servicing regional ports leads to irregular schedules, complicating timely cargo deliveries.
• Escalating Freight Expenses: Limited competition among carriers drives up shipping rates, increasing operational costs for local enterprises engaged in both domestic distribution and international trade.
• Port Congestion and Delays: Insufficient maritime routes contribute to overcrowded ports, causing bottlenecks that ripple through entire supply chains.

The dominance of a handful of shipping companies further intensifies these issues by limiting negotiation power over freight terms. This habitat results in several critical vulnerabilities:

• Agricultural Export Challenges: Producers face difficulties accessing global markets promptly,…