Transport strike in Colombia begins to affect bilateral trade with Venezuela

Transport strike in Colombia begins to affect bilateral trade with Venezuela

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For the third consecutive day, a large part of the main streets and avenues of several cities in Colombia remain blocked by drivers of heavy-duty trucks and public transport after rejecting of the announcement presented by the government of Gustavo Petro on the gradual increase in the price of the gallon of diesel, a situation that this Wednesday began to directly affect trade between Colombia and Venezuela.

By: Luz Dary Depablos | Correspondent lapatilla.com

“The cargo that normally comes from the interior of Colombia to Cúcuta is being blocked on the road. Those who did not clear their shipments are obviously not clearing any new shipments to the border area, and everything has also become complicated for the interior of Colombia, which means that at this time the customs warehouses here in the border area (Táchira), the warehouses and other depots are practically empty. We are not receiving import cargo from Colombia,” reported Nelson Urueña, President of the Association of Customs Assistants of the State of Táchira (Asoata).

Urueña emphasized that “the cargo that was able to leave over the weekend and that was for export to the interior of Colombia, had to do paperwork between Monday and Tuesday to continue its destination to cities in Colombia. But they are stuck in Cúcuta, those cargoes that were transferred to Colombian trucks have not been able to leave and those cargoes have not been able to leave for their destinations.”

He also pointed out that “the cargo that comes from China through the Buenaventura Port and from Barranquilla, a lot of merchandise comes in transit through those ports to the city of Cúcuta, and then on to the free zone and from there it is exported to Venezuela.This is now paralyzed, which means that at this moment Venezuela is failing to receive a large amount of supplies for the business sector, as well as parts and pieces to finish products.”

 

Therefore, there could be a shortage of inputs and products in Venezuelan companies, which import items for their production from Colombia.

The president of Asoata warned that if the strike in Colombia continues, Venezuela would also be affected due to the amount of products for human and animal consumption, as well as personal hygiene and cleaning products that enter Venezuela from Colombia. These would be the items that “are basically handled in greater volumes.”

What is happening in Colombia?

Since last Saturday, August 31st, a gradual increase in the price of a gallon of Motor Fuel Oil (ACPM), as diesel is known in the neighboring country, began to take effect in several cities in Colombia. The Colombian government decreed the first increase of 66% that had been announced, meaning that the price of a gallon of diesel would increase from 9,000 pesos (2.4 dollars) to 15,000 Colombian pesos (4 dollars) per gallon (3.7 liters) of diesel, an increase that directly affects the final consumer.

Since the announcement of the 6,000 pesos (1.6 dollars) increase per gallon as of this Saturday, gas stations have started charging 2,000 pesos per gallon, that is, 0.50 cents of a dollar, an increase that, according to representatives of the Federation of Cargo Transport Entrepreneurs (Fedetranscarga) in Colombia, will increase the cost of freight by 8%, a surcharge that will end up on the prices of food and the transport of goods and services.

It should be noted that this Tuesday the Colombian government decided not to carry out the other two gradual increases that it planned to do in the coming months, but did not repeal the 2,000 pesos increase, which is why transporters continue to strike. The Norte de Santander department (bordering Táchira) is the most affected, so its economy is practically paralyzed and as a consequence the strike begins to affect the Venezuelan border trade, industry and residents.

 

Meanwhile, the parking lot of the National Tax and Customs Directorate (Dian), located in the La Parada district (Colombia) just a few meters from the Simón Bolívar international bridge, is full of heavy trucks that have not been able to move due to the strike in the neighboring country.

Safeguarded merchandise

Nelson Urueña said that Asoata has maintained constant communication with representatives of the Colombian Federation of Logistics Agents in International Trade (Fitac) and the Colombian Federation of Road Cargo Transporters (Colfecar), since it is still unknown how long the strike could continue.

The President of Asoata indicated that some loads that were stranded on the way to the city of Cúcuta, have been safeguarded in parking lots waiting for the strike to end so that they are not affected.

He said that customs officials at the Táchira border hope that a consensus will be reached as soon as possible through dialogue, so that the roadblocks in Colombia will not continue to affect Venezuelan businesses and the commercial sector at the border.

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