Why Cargo Dwell Time Matters in Trade

An interesting article from the World bank economic premise on a new dwell time survey analysis in SSA that reveal that collusion of interests may reinforce rent-seeking behaviors among shippers, intermediaries, and controlling agencies. Companies may use long dwell times as a strategic tool to prevent competition, similar to a predatory pricing mechanism. Incumbent traders and importers, as well as customs agencies, terminal operators, and owners of warehouses benefit from long cargo dwell times, which act as a strong barrier to entry for international traders and manufacturers.

This new analysis might have quite an impact on donors future infrastructure investments policies.

The article can be found at:
http://siteresources.worldbank.org/EXTPREMNET/Resources/EP81.pdf