This paper investigates the determinants of maritime transport costs, focusing on Latin American countries. The authors use a large database of over 300,000 observations per year on shipments from different ports worldwide to the United States. Key findings include: 1. **Distance and Containerization**: Distance and the use of containerization significantly affect shipping costs. A doubling in distance increases costs by about 20%, while containerization reduces costs by a significant margin. 2. **Port Efficiency**: Port efficiency is a crucial factor. Improving port efficiency from the 25th to the 75th percentile reduces shipping costs by more than 12%. Inefficient ports increase handling costs, which are a significant component of shipping costs. 3. **Determinants of Port Efficiency**: The study finds that port efficiency is influenced by infrastructure, regulation, and the prevalence of organized crime. Excessive regulation and poor infrastructure can hinder port efficiency, while reducing regulation and improving infrastructure can enhance it. 4. **Success Stories**: The paper presents examples of successful port management in Latin America, where private involvement and labor reforms have led to efficiency gains and lower costs. The authors conclude that transport costs, particularly maritime transport costs, are a significant barrier to trade and economic growth in Latin America. Addressing these costs through improvements in port efficiency and infrastructure can significantly enhance trade opportunities and economic development.This paper investigates the determinants of maritime transport costs, focusing on Latin American countries. The authors use a large database of over 300,000 observations per year on shipments from different ports worldwide to the United States. Key findings include: 1. **Distance and Containerization**: Distance and the use of containerization significantly affect shipping costs. A doubling in distance increases costs by about 20%, while containerization reduces costs by a significant margin. 2. **Port Efficiency**: Port efficiency is a crucial factor. Improving port efficiency from the 25th to the 75th percentile reduces shipping costs by more than 12%. Inefficient ports increase handling costs, which are a significant component of shipping costs. 3. **Determinants of Port Efficiency**: The study finds that port efficiency is influenced by infrastructure, regulation, and the prevalence of organized crime. Excessive regulation and poor infrastructure can hinder port efficiency, while reducing regulation and improving infrastructure can enhance it. 4. **Success Stories**: The paper presents examples of successful port management in Latin America, where private involvement and labor reforms have led to efficiency gains and lower costs. The authors conclude that transport costs, particularly maritime transport costs, are a significant barrier to trade and economic growth in Latin America. Addressing these costs through improvements in port efficiency and infrastructure can significantly enhance trade opportunities and economic development.