HOW COVID - 19 HAS AFFECTED FREIGHT TRANSPORTATION IN COLOMBIA.

JULIANA PAEZ VALIENTE

JUAN PABLO CASTAÑEDA QUIÑONES

JASSON ABRIL TORRES

INTERNATIONAL BUSINESS V SEMESTER

TEST

HOW COVID-19 AFFECTS CARGO TRANSPORTATION IN COLOMBIA

DOCENTE: CARLOS GONZALES

ELECTIVE I (TECHNOLOGIST) MODES OF TRANSPORTATION

UNIVERSITY FOUNDATION

SAINT MATTHEW

BOGOTA D.C
 INTRODUCTION

The crisis that the transport sector is experiencing because of the COVID-19 pandemic and

how they have had to stop activities waiting for help from the government and for everything to

return to normal.

In addition to the rise in the dollar, the mobility restrictions of each region or city, outsourcing,

the lack of cars and the closure or cessation of production have affected this union, as it is in the

case of school transport that they have had To stop activities due to the temporary closure of

schools, the freight transport sector, which are a fundamental instrument in supplying the

country, approximately 30% have been affected by COVID-19 and 70% are still active, since

They are the ones who continue to move cargo in the country, supply supplies, basic necessities,

among others.
 OVERALL OBJECTIVE.

Understand and measure the impact generated in the country by the Covid-19 pandemic in

national transport.

SPECIFIC OBJECTIVES.

• Understand and measure the impact on transport caused by the pandemic.

• Analyze the impact on food, supply, and supply areas in the regions of Colombia due to

COVID - 19.

• Analyze the impact on the reduction of imports and exports in Colombia.

 RESEARCH

Based on the problem of Covid-19 we can identify the traffic

Maritime in which, in the first quarter of 2020, it allows to contemplate in the different cities

of Colombia with a greater flow of Imports and Exports negative variations in

the ports of Cartagena (-13.5%), in Santa Marta (-52.9%), Buenaventura (-29.2%) and in

Barrancabermeja (-23.3%). Indeed, the national port traffic was 3.8% due to

below what was reported in 201, and due to this situation 1.7 million

tons less. (Paula Delgado Gómez, May 21, 2020, El Espectador)

 MINISTRY OF TRANSPORTATION

DECREE NUMBER 482 OF MARCH 26, 2020

By which measures are dictated on the provision of the public transport service and its

infrastructure, within the State of Emergency, Economic, Social and Ecological.

THE PRESIDENT OF THE REPUBLIC

In exercise of the powers conferred by article 215 of the Political Constitution, in

accordance with Law 137 of 1994, and in accordance with the provisions of Decree 417 of

March 17, 2020, whereby a State is declared of Economic, Social and Ecological Emergency

throughout the national territory.

Second paragraph: The Ministry of Transportation will adopt the internal

regulations of the Center for Logistics and Transportation.

Article 2. Functions of the Center. The Logistics and Transportation Center will have the

following functions.

1. Advise on the matters that correspond to guaranteeing the provision of the public

transport service during the duration of the economic, social, and ecological emergency.

2. Adopt the decisions that allow to establish the conditions of transport and transit to

passengers, cargo, and other exceptional matters whose transport and transit is allowed in the

country.
 3. Ensure that the transport of goods to be supplied for the national population is carried

out with the lowest possible costs and rationalizing the resources of the State and of those

who are involved in the provision of the public transport service.

Article 3. Powers of the Center. The Logistics and Transportation Center will have

the following powers:

1. Adopt and issue regulations regarding the conditions in which the different actors in the

transportation sector can cooperate or coordinate.

2. Authorize the disembarkation of passengers in the country, for reasons of humanitarian

emergency, fortuitous event, or force majeure; Except for that expressly regulated in another

provision.

3. Authorize efficient logistics synergies agreements, in the terms of article 8 of this

Legislative Decree.

4. Adopt dissemination and communication mechanisms to users of the transport sector in

relation to the transport measures that will be in force during the duration of the economic,

social, and ecological emergency.

5. Advise the entities of the National Transportation System on the exercise of their

functions, to overcome emergency situations.

Chapter 2 Freight Transportation

Article 7. Freight Transportation: During the state of economic, social and ecological

emergency and the mandatory preventive isolation, the cargo transportation service in the

national territory must be guaranteed, which are strictly necessary to prevent, mitigate and
attend to the health emergency. due to the Coronavirus COVID-19 and those allowed in

Decree 457 of March 22, 2020.

Article 8. Duration of the authorization of agreements for efficient logistics

synergies: The contracts, conventions, agreements or agreements previously approved by the

Logistics and Transportation Center to allow efficient logistics synergies will have as

maximum validity the date foreseen for the completion of the mandatory preventive isolation

and the economic, social and ecological emergency.

Chapter 4. Transportation Operation

Article 11. Transport documents: The documents that support the public transport

operation, including the cargo manifest, the loading order and the other documents provided

for in the current regulation, may be transmitted and carried in digital media.

Paragraph: If it is not possible to display or carry the documents in digital media, they

may be presented in physical medium.

Article 12. Safe points on the road: "Safe Points" will be available on national roads to

examine and accompany passenger and cargo transporters. The location will be defined by

the Logistics and Transportation Center, and the execution of on-road activities will be

carried out by the National Road Safety Agency, the Traffic and Transportation Directorate

of the National Police. The foregoing in coordination with the competent authorities, the

concessions in charge of the infrastructure and the Ministry of Health of the respective

municipality.
 Chapter. 5 tolls

Article 13. Exemption from the collection of tolls: During the state of economic, social

and ecological emergency, and the mandatory preventive isolation, suspend the collection of

tolls from vehicles that transit through the national territory with which the activities of

which the Decree 457 of March 22, 2020 and this Legislative Decree.

Ministry of Transport (2020, March 26). Decree 482 of March 26, 2020 (PDF file)

https://dapre.presidencia.gov.co/normativa/normativa/DECRETO%20482%20DEL

%2026%20DE%20MARZO%20DE%202020.pdf

HOW COVID-19 AFFECTS CARGO TRANSPORTATION IN COLOMBIA

As the pandemic (COVID - 19) has affected transportation logistics in Colombia, the

pandemic has had an impact on the supply and demand of basic or necessities, with direct and

indirect effects due to business closures and interruptions. in the supply chain as such, indirect in

the result of the freezing or stagnation of national economic growth, the COVID-19 pandemic

can lead to permanent changes in the supply and demand of products as such, also bringing

changes to the supply chains, who transport or transfer from the producers to the final consumer

in each region of the country.

In addition to delays in the clearance and delivery of goods in general, if before 15 days, now

take twice as long, sometimes three times the time, depending on the place, this refers to

deliveries related to goods or products that are not of first need and that come from another
region or country to Bogota, example, Barranquilla – Bogota or Buenaventura – Bogota , this is

due to the decrease and cancellation of goods from countries such as China, USA, among others,

this implies that there is a lack of quota, that is, there was not enough merchandise to be mounted

to a cargo ship or a truck as such, then the goods had to be unified in a single trip and this meant

delays in dispatch and deliveries of goods to their final destination as such.

COLFECAR reported this year that as a result of the COVID pandemic – 19 have reported

decreases in their operations with approximately 30% and 60%, this depending on the activity or

the sector, but it should be mentioned that with regard to the transport of goods and supply of the

country have not ceased since the beginning of mandatory preventive isolation, in order to

guarantee the supply of commodities (first need) for all regions of the country.

"Deputy Minister Carmen Ligia Valderrama said that although for these people their income

and activity have been reduced, they are not in the most extreme case, such as school transport,

for example, that has parked their cars since 23 May" (Paula Delgado Gómez, 21 May. 2020, El

Spectator)

In addition to transporting food for schools that have community dining for their students, who

have been forced to look for other alternatives, as well as the transport of new cars from other

countries, the bumps that carry them vehicles to carry mass cargo to their destination) who have

had a great decrease in their operations, as the purchase of new cars decreases , its import

decreases and as such decreases its transport on the country's land routes.

Cross-sectional freight transport, movement of goods is a vital tool for the country's economy,

as a result of COVID – 19 has lowered cargo transport by an average of 30%, but many
companies remain in operation with approximately 70%, such as the primary agricultural sector

(maize, rice, among others), until all activities do not start at their full normal as before, as before

, the current market is uncertain.

Other factors that have affected is the decrease in freight, i.e. the price or value paid for the

service to transport the goods elsewhere, which is considerably high and susceptible to supply

and demand, in short, "the customer puts a price and wants or wants" so that companies as such

in this pandemic are , in addition to the overpopulation of approximately 40% of cargo vehicles,

i.e. the load is scarce, there is no burden for all, and the burden that companies carry on in their

own vehicles, thus they stop outsourcing with owners and independents to mitigate costs and

times.

Another factor that has affected is the rise of the Dollar that exceeded the barrier of ($4,000), a

factor that increases costs by approximately 20%, in addition to others such as vehicle restrictions

that significantly harm the transporter, to meet the supply of such products at the national level on

an uninterrupted basis.

At the root of all this the Ministry of Transport authorized the exemption from the payment of

tolls, a ruble that represents 10% operating costs as such, also the decrease in the price of

gasoline due to the behavior of oil as such, this somewhat alleviates the crisis currently

experienced by cargo transporters, but it depends on the sector or activity.

 References.

Taken from:

https://www.elespectador.com/coronavirus/covid-19-desata-crisis-en-el-transporte-de-carga-

articulo-920671/

Taken from:

https://www.bancomundial.org/es/news/feature/2020/04/23/coronavirus-shakes-commodity-

markets

Taken from:

https://coronaviruscolombia.gov.co/Covid19/docs/decretos/mintransporte/114_decreto_482.pd

Taken from:

https://www.ccb.org.co/observatorio/Economia/Economia-dinamica-incluyente-e-

innovadora/Impacto-del-COVID-19

Taken from:

https://dapre.presidencia.gov.co/normativa/normativa/DECRETO%20482%20DEL

%2026%20DE%20MARZO%20DE%202020.pdf