Overdue Containers Push Venezuelas Debt to USD 1 Bln

HHLA As a result of a number of delays in returning containers or completely failing to do so, the Venezuelan state agencies have collected a debt of some USD 1 billion owed to shipping firms, according to Reuters. Over the last six years, containers, which cost USD 100 per day per container, were at times left for months or even years in oil industry facilities or on farms all around Venezuela. A large amount of containers, worth USD 20,000 to USD 40,000 each, was found scattered in the countrys main port city of Puerto Cabello in empty lots and along unpaved roads. The debt amount piled up as a result of unpaid fines from containers, most of which have been returned at this point, Reuters said. Reuters quoted a shipping industry source as saying that the government still doesnt want to recognise this debt, and that it is not related to payment for shipping services. Furthermore, due to the countrys difficult financial situation, the freight rates to Venezuela have increased and are now among the highest in region, Reuters writes, adding that it is unclear whether the countrys container debt would ever be paid back. Shipping lines which worked with Venezuela before, plan on continuing their cooperation with the country despite its economic issues, which include almost USD 7 billion in bond payments to be made by Venezuela and PDVSA for the remainder of the year. The countrys debt last year stood at USD 817 million for containers that were not returned or were returned late. World Maritime News Staff