This paper examines the determinants of maritime transport costs and their impact on bilateral trade. It finds that transport costs are a significant barrier to trade, especially for Latin American countries, where they are more important than import tariffs. Using a large dataset of over 300,000 observations per year, the study shows that distance, volume, and product characteristics affect transport costs. Port efficiency is also a key determinant, with improvements in port efficiency reducing shipping costs by up to 12%. Inefficient ports increase handling costs, which are a component of shipping costs. The study also finds that transport costs are influenced by excessive regulation, organized crime, and poor infrastructure. The results suggest that improving port efficiency can significantly increase bilateral trade. The paper also constructs an index of country-specific maritime transport costs and includes it in a standard trade gravity model to assess its explanatory power. The results show that transport costs have a significant negative effect on trade. The study concludes that port efficiency is an important determinant of maritime transport costs and that improving port efficiency can reduce shipping costs and increase trade.This paper examines the determinants of maritime transport costs and their impact on bilateral trade. It finds that transport costs are a significant barrier to trade, especially for Latin American countries, where they are more important than import tariffs. Using a large dataset of over 300,000 observations per year, the study shows that distance, volume, and product characteristics affect transport costs. Port efficiency is also a key determinant, with improvements in port efficiency reducing shipping costs by up to 12%. Inefficient ports increase handling costs, which are a component of shipping costs. The study also finds that transport costs are influenced by excessive regulation, organized crime, and poor infrastructure. The results suggest that improving port efficiency can significantly increase bilateral trade. The paper also constructs an index of country-specific maritime transport costs and includes it in a standard trade gravity model to assess its explanatory power. The results show that transport costs have a significant negative effect on trade. The study concludes that port efficiency is an important determinant of maritime transport costs and that improving port efficiency can reduce shipping costs and increase trade.