Transport and logistics costs are high in the LAC region. On a macro-level, the World Bank has estimated LAC logistics costs as a percent of GDP as between 16 and 26 percent compared to the OECD benchmark of about 9 percent. At the national level, average logistics costs represent a share of product value between 18 and 32 percent, compared again with 9 percent for the OECD. These costs represent a greater barrier to trade than import tariffs and make up a larger part of the delivered cost of food products. In fact, while food import tariffs are heterogeneous across countries and food groups, on average, ad valorem rates have decreased in the region from 2005 to 2008 and currently range from 3 to 12 percent of product value. On the other hand, with respect to transport and logistics costs, the international maritime and road haulage comp omens alone can total about 20 percent of the FOB value of goods if combined. By the time products are transferred, handled, stored and distributed domestically, the logistics component of the delivered good is often more than 50 percent of the final price to consumers.
