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Air cargo, trade and transportation costs of perishables and exotics from South America

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  • Vega, Henry

Abstract

Exporting time-sensitive perishable and exotic products is one of few alternatives that producers in less-developed countries have to compete in international markets. While export performance is generally linked to these producers' ability to take advantage of their geographic location and access to low labor costs, concerns about the sustainability of these economic activities encompass complex supply chains and high transportation costs. There is an increasing interest in understanding the reliability of such supply chains and the implications of high transportation costs, particularly airfreight costs. Using South America as a case study, we investigate trade and air transportation costs of perishables between 2000 and 2006. Descriptive trade statistics are complemented by an assessment and comparison of airfreight rates. The results are mostly consistent with producers' concerns. Among the inconsistencies, producers in some countries face higher transportation costs than far more distant neighbors; while in others transportation costs have decreased in the period of time examined.

Suggested Citation

  • Vega, Henry, 2008. "Air cargo, trade and transportation costs of perishables and exotics from South America," Journal of Air Transport Management, Elsevier, vol. 14(6), pages 324-328.
    • Handle: RePEc:eee:jaitra:v:14:y:2008:i:6:p:324-328
    DOI: 10.1016/j.jairtraman.2008.08.006
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    References listed on IDEAS

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    1. Jack Hirshleifer, 1958. "Peak Loads and Efficient Pricing: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(3), pages 451-462.
    2. Henry Vega, 2008. "Transportation Costs of Fresh Flowers: A Comparison across Major Exporting Countries," IDB Publications (Working Papers) 48178, Inter-American Development Bank.
    3. Yeats, A.J., 1989. "Do Caribbean Exporters Pay Higher Freight Costs?," World Bank - Discussion Papers 62, World Bank.
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    Cited by:

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    2. Button, Kenneth & Brugnoli, Alberto & Martini, Gianmaria & Scotti, Davide, 2015. "Connecting African urban areas: airline networks and intra-Sub-Saharan trade," Journal of Transport Geography, Elsevier, vol. 42(C), pages 84-89.
    3. Suau-Sanchez, Pere & Voltes-Dorta, Augusto & Cugueró-Escofet, Natàlia, 2020. "An early assessment of the impact of COVID-19 on air transport: Just another crisis or the end of aviation as we know it?," Journal of Transport Geography, Elsevier, vol. 86(C).

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