Mar 20th, 2013

by The Bulletin – El Boletin.

Panama outperforms major US cities as a distribution center for retailers seeking international expansion. Nelson Cabrera, director of a new business of Lilly Associates, a logistics provider based in Miami, said that Panama offers many advantages as a distribution center for US retailers citing its proximity to the Caribbean, Central and South America. Freight rates to Latin America and the Caribbean are much cheaper from Panama than from the US.  Cabrera said that freight rates from China to Panama and on to Latin America and the Caribbean, average 30% less compared to the United States.  Labor is also cheaper in Panama than in the US, and customs is less restrictive in Panama than the US making it more efficient and quicker to import/export through Panama.

The former vice president of operations of the Retail Industry Leader Association (RILA), Casey Chroust, expressed similar thoughts stating that Panama has a great potential for retailers as the gateway to Latin American.  From Chroust’s point of view no other country in Latin America can offer more feeder services than Panama.

The Mayor of Rotterdam, Ahmed Aboutaleb, also agreed that other than Panama there is no other Latin American country with a logistics business similar to Rotterdam, stating: “I’m happy that Rotterdam is unique and I am happy that Panama is unique.” Both have strategic locations to cover specific areas in the world.  (complete article)