Peru is considering cutting taxes on fuel for shipping companies and airlines to attract more shippers as an export boom crowds out container space and delays goods, the government said on Tuesday.
Two week delays in leaving ports have been reported for up to 35 percent of Peru's coffee, and shippers have warned that other agricultural goods may be held up as companies struggle to keep up with demand.
Peru's foreign sales - which include textiles, tropical fruits and asparagus - hit a seven-year high in May and exports are expected to break a government target of $10 billion 2004.
Trade Minister Alfredo Ferrero said that target could be at risk if shipping companies do not increase their freight services.
"These problems could put the annual target at risk and we are worried," Ferrero told a news conference.
"We have proposed to the Economy Ministry that Peru reduces the selective consumer tax (ISC) on fuel. We want to encourage (shippers and airlines) to come and send our products abroad," he added.
A recent spike in international oil prices pushed up Peruvian fuel costs by 5 percent in May and local gasoline prices are already some of the highest in the region because of high taxes.
Shipping companies such as Lima-based La Hanseatica said earlier this month they had no plans to increase its fleet in the near future because high fuel costs meant boats were very expensive to charter.
Maersk Peru S.A., a unit of the world's biggest container line, Denmark's Maersk Sealand, said it is evaluating adding another weekly boat to its Peru service, which serves Lima's Callao port and the northern port of Paita.
Air cargo groups say trade would be seriously damaged if a judicial ruling succeeded in grounding Peru's No. 2 airline, LanPeru, a unit of Chile's Lan Airlines.
A judge in the southern city of Arequipa ruled on June 30 that LanPeru had violated civil aviation norms and should have its license suspended.
Comments
Comments are closed.