This paper examines the impact of port efficiency on maritime transport costs and bilateral trade, using a large dataset of over 300,000 observations per year on shipments from various ports worldwide to the United States. The study finds that distance, volume, and product characteristics significantly affect shipping costs, but port efficiency is a crucial determinant. Improving port efficiency from the 25th to the 75th percentile reduces shipping costs by 12%, equivalent to being 60% closer to markets. Inefficient ports also increase handling costs, which are a significant component of shipping costs. Reducing inefficiencies in transport costs associated with the 25th to 75th percentiles percentiles can increase bilateral trade by about 25%. The study also explores the factors influencing port efficiency, finding that excessive regulation, organized crime, and poor infrastructure are major contributors. The results suggest that improving port efficiency can significantly enhance trade and economic growth, particularly for Latin American countries, which often face higher transport costs compared to other regions.This paper examines the impact of port efficiency on maritime transport costs and bilateral trade, using a large dataset of over 300,000 observations per year on shipments from various ports worldwide to the United States. The study finds that distance, volume, and product characteristics significantly affect shipping costs, but port efficiency is a crucial determinant. Improving port efficiency from the 25th to the 75th percentile reduces shipping costs by 12%, equivalent to being 60% closer to markets. Inefficient ports also increase handling costs, which are a significant component of shipping costs. Reducing inefficiencies in transport costs associated with the 25th to 75th percentiles percentiles can increase bilateral trade by about 25%. The study also explores the factors influencing port efficiency, finding that excessive regulation, organized crime, and poor infrastructure are major contributors. The results suggest that improving port efficiency can significantly enhance trade and economic growth, particularly for Latin American countries, which often face higher transport costs compared to other regions.