Transport coffee from Colombia to Chile

Nature of the coffee

Few crops receive as much attention to its relationship with the environment as the coffee. The fact of being produced in tropical and subtropical areas, North-South being a product from the point of view of its consumption and production, to be associated with frequent occasions of consumption and also be a drink associated with social interaction, makes the coffee a product that generates interest and of conversation in many areas.

Seed of cafe

Semillas-de-caf&eacute

The coffee, more than an agricultural product for export, is first and foremost a bet to the social and cultural fabric, institutional and political that has served as the basis for democratic stability and national integration. This activity represents the heart of the Colombian rural society offering a job opportunity, income and livelihood for millions of our compatriots in areas where mostly there is no viable alternative

The coffee is produced by more or less 80 countries, typically located in the tropical areas; of these, almost 50% are responsible for 97 per cent of the world production and the vast majority belong to the ICO (International Coffee Organization) as exporting members.

The demand for different qualities of coffee has been a function of the cultural tradition of the consumers. France for example, has a predilection for the cafes robust, which represented 56.2 per cent of its demand during the period 1984/85 to 1988/89. Germany denotes an inclination for the smooth coffees, that is why the Soft Colombianos accounted for 40.8 per cent and the other soft 28.3% of its demand. The same happens with Switzerland, where 61.8% of their demand is composed of smooth coffees.

 The Colombian Coffee in the world

The quality of the colombian coffee has been recognized by the most demanding consumers in the world. In the same way, have contributed to a number of factors such as the quality of the soils of the andean cordillera, climate, altitude which carries out the cultivation, among others, but without doubt the fundamental and which placed a particular seal, is taking care of crops and the way in which it is collected.

Preparation of coffee

cafe-sin-cafetera

Experts on the subject provide that there are four major components that make a good coffee: the aroma, body, the acidity and the flavor. Colombia complies with all these features and that is what has helped you to position itself in the international market, it is said that the coffee in Colombia more than a good agricultural exports, is above all a social fabric, cultural, institutional and political that has served as the basis for democratic stability and national integration.

The coffee sector is clearly exporter and within its composition, are the products of the threshing (green coffee exalted) goods of greater external sale, according to the DNP. In the period 2011 to 2013 presented an increasing export of roast and ground coffee (USD112 million) approximately while the threshing products reached a total value of exported 6.424.348.449 trillion USD in the same period.

Among the targets of green coffee of Colombia in 2013 highlights the export of 4.2 million bags to the United States, a country that has a stake of 44% of the total shipments. Despite the economic crisis, the second destination remains Europe with a volume equal to 3 million bags (31%). Thirdly protrudes Japan with 1.1 million bags equivalent to 11% of total exports.

Routes for transporting the product of Colombia to Chile

We know that the Colombian coffee is exported to different parts of the world but for the case of this blog, one only wants to expose the case in which Colombia exported to Chile because they have become major trading partners on this product.

Maritime mode

From Colombia, goods traffic is handled mainly through the ports of San Antonio, Valparaiso port, port of Arica Port of San Vicente and Iquique port, however as noted on the map, there are only two points of departure of goods by this means from Colombia: north in the ports of Cartagena and Barranquilla and south at the port of Buenaventura.

Costs of maritime transport

Depending on the existence or not of office of quality control of the lots of coffee, until now located only in the port of Barranquilla, limiting the alternatives of output and consequently the air route or land up to that port. This situation could represent some higher costs in the logistics to the interior of Colombia that in Chile to be greater than the supply of available ports.

Port of Buenaventura – Colombia

puerto_maritimo_buenaventura_2015_0

Chile has a port infrastructure composed of more than 24 ports that are enabled for the handling of different types of load, which allows the 95 per cent of the country’s foreign trade is transported by this means. The most important ports are: Arica, Iquique, Antofagasta, mussels, Coquimbo, Valparaiso, San Antonio, Talcahuano (San Vicente), Puerto Montt and Punta Arenas.

Port of Arica – Chile

CHIL

The maritime services offer to Chile from Colombia counts with around 13 companies both from the Atlantic or the Pacific Colombian, the great majority of them with direct services.

Connection times

The transit time ranges between 10 and 20 days take Atlantic Coast, depending on the port of departure and destination, while from Buenaventura are times of crossing between 6 and 14 days.

Frequencies and transit time from the Colombian ports (Source Proexport)

rutama

It is important to note that the maritime trade between Colombia and Chile, is favored by the possibilities of load cargo released (lower than the capacity of a container), a service that is provided by 5 consolidated in the path.

River routes from Colombia to Chile (Source Proexport)

Imagen1

The times of transportation of coffee by sea do not affect their quality, due to the fact that you can keep the product with excellent quality for up to six months, taking some optimum storage conditions, where you ensure a standard temperature so that the product is not subjected to abrupt changes in pressure and temperature, because the roasted coffee or ground to be packed begins a slow process of degassing and ideally retard it but retain it in a cool environment.

The longest journey in days according to the table above this by the order of the twenty-three days, confirming that the product would cool to their place of destination.

The information contained is referential nature, being provided directly by the corporate borrowers. Are subject to change without notice by factors specific to the activity or of their volumes of trade.

Shipping companies providing service to Chile

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Air Mode

Chile has a total of 476 airports and aerodromes, distributed from Arica to Antarctica. Of these, only 7 airports provide all services plus the International Police, Customs, and Agricultural and Livestock Service (SAG), the rest are private airfields, military and fiscal domain.

The exchange of goods between Colombia and Chile, is normally done through the Aeropuerto Internacional Comodoro Arturo Merino Benítez of Santiago, one of the most modern in the continent with 22 airlines of burden of which 14 also offer the service of passengers and a specialized terminal for cargo handling of export, import and national burden.

Load on air mode

pic-cgo-inpgs-sshipments

Cost of air transport

It is not common freight forwarding by this medium, due to the high costs that represents, but depending on the demands of delivery of the client is required to take this into account. Additionally in the marketing of  coffee microlotes, where the volume of cargo is not very high, the middle air turns out to be a quite powerful tool to deliver the product in the shortest possible time. It is important to bear this in mind in the terms of the negotiation to determine the percentages of transport that assumed by each one of the parties involved in the transaction.

Air Routes from Colombia to Chile (source Proexport)

Imagen2

Connection times

The supply of air services with destination to Chile is supported on 4 Airlines Cargo and 4 with quotas for passenger aircraft, through major cities such as Buenos Aires, Panama City, Lima and Miami which makes the transit times are not very favorable for goods with a useful life delicate.

Flights depart from Bogota, Cali and Medellin and directed toward Santiago de Chile. The frequencies are daily for some of the airlines although direct services are provided only on passenger flights.

Airline Connections service providers to ChileImagen3

Costs in the exporting country

The goods would get out of the facilities of the National Federation of Coffee Growers or directly from the crops where you have stored the coffee by land, with destination to the Colombian port agreed. It should be noted that with the INCOTERM FOB, the coffee must be delivered on board the ship. In this transit will incur the following costs:

Direct costs:

  • Preparation of the goods, in relation to the labelling, packaging and marking of the coffee.
  • Grouping of coffee, in lumps, bags, pallets or containers, this depends on what the seller has negotiated with the buyer on the presentation in which you want to receive the coffee.
  • Costs of documentation: as the certificate of origin, certifications and seen good, DEX, etc.
  • Costs of handling local to the port of origin, such as: upload, download, consolidation, among others.
  • Cost of freight and insurance costs, local from the premises of the FNC or from the crops, up to the port of shipment.
  • Banking costs, such as commissions, interest or other costs that must be paid to the financial institutions.

Indirect costs:

  • Administrative costs related to wages and salaries of the staff of the FNC, that are part of the process of export of coffee.
  • Costs of international transit
  • Following with the order of ideas, the second geographical journey from the serious maritime port of origin or boarding in Colombia, until the destination port in the country agreed upon. The costs that will be incurred would be.
  • Handling Costs of shipment in the country of origin and landing in the country of destination.
  • International Freight and insurance, from the port of origin to the destination port in the country agreed upon.
  • Costs of nationalization of coffee, by the buyer.

Costs in the country of destination or importer.

Finally the third journey serious from the destination port in the country agreed, to the place of delivery agreed between the seller and the buyer. The related costs would be:

Direct Costs

  • Storage: costs for rights of use of public or private tank where you stored the goods.
  • Internal freight and internal insurance from the port of landing in the importing country to the factory of the buyer
  • Costs of documentation, such as: registration of import, import declaration and certificate of pre – shipment of goods.
  • Costs related to customs duties, to nationalize the coffee in the importing country, as well as costs incurred in the payment of local taxs, which are calculated on the CIF value of the coffee.
  • Banking costs.

Costs in the exporting country

The goods would get out of the facilities of the National Federation of Coffee Growers or directly from the crops where you have stored the coffee by land, with destination to the Colombian port agreed. It should be noted that with the INCOTERM FOB, the coffee must be delivered on board the ship. In this transit will incur the following costs:

Direct costs:

  • Preparation of the goods, in relation to the labelling, packaging and marking of the coffee.
  • Grouping of coffee, in lumps, bags, pallets or containers, this depends on what the seller has negotiated with the buyer on the presentation in which you want to receive the coffee.
  • Costs of documentation: as the certificate of origin, certifications and seen good, DEX, etc.
  • Costs of handling local to the port of origin, such as: upload, download, consolidation, among others.
  • Cost of freight and insurance costs, local from the premises of the FNC or from the crops, up to the port of shipment.
  •  Banking costs, such as commissions, interest or other costs that must be paid to the financial institutions.

Indirect costs:

  • Administrative costs related to wages and salaries of the staff of the FNC, that are part of the process of export of coffee.

Costs of international transit

  • Following with the order of ideas, the second geographical journey from the serious maritime port of origin or boarding in Colombia, until the destination port in the country agreed upon. The costs that will be incurred would be:
  • Handling Costs of shipment in the country of origin and landing in the country of destination.
  • International Freight and insurance, from the port of origin to the destination port in the country agreed upon.
  • Costs of nationalization of coffee, by the buyer.
  • Costs in the country of destination or importer.
  • Finally the third journey serious from the destination port in the country agreed, to the place of delivery agreed between the seller and the buyer. The related costs would be.

Direct Costs

  • Storage: costs for rights of use of public or private tank where you stored the goods.
  •  Internal freight and internal insurance from the port of landing in the importing country to the factory of the buyer.
  • Costs of documentation, such as: registration of import, import declaration and certificate of pre – shipment of goods.
  • Costs related to customs duties, to nationalize the coffee in the importing country, as well as costs incurred in the payment of local taxs, which are calculated on the CIF value of the coffee.
  •  Banking costs.

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