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Home » Trucking Solutions in Latin America
LATIN AMERICA

Trucking Solutions in Latin America

February 6, 2023
Ezequiel Blumtritt, Director Product Development, Latin America, C.H. Robinson, Thomas Schoett, Vice President, Latin America, C.H. Robinson


CHRobinson-Blumtritt.pngCH-Robinson-Thomas-Schoett.pngAnalyst Insight: It will be a challenging year for international trade in 2023. With the potential for new COVID-19 waves, a global recession, government changes, geopolitical conflicts and environmental issues, we will continue to see a volatile logistics environment. Adaptable and agile supply chain models will continue to be crucial moving forward as global logistics goes through demanding times. 

In a changing global economic landscape, new opportunities for Latin America have emerged, generating market growth in countries such as Argentina and Brazil. The decelerated availability of products in some parts of the world led to Latin America positioning itself as an important supplier of food, mining and technology products. 

In the last two years, trucking in South America has developed rapidly. This growth was accelerated in part due to the unprecedented interruption of the global supply chain caused by the COVID-19 pandemic and the logistical disruption of maritime freight. Previously, some routes only had transportation via ocean, such as the route between Argentina and Peru, but land cargo services are now more available in the region. 

The global environment continues to be volatile, leading to rate and capacity fluctuations, so it’s best to seek strategies that minimize risk and increase the ability to adapt to market changes. While truckload growth has led to opportunities for companies to expand their supply chain in Latin America, not all regions are created equal. Consider thinking through the following strategies before implementing supply chain shifts in the area: 

Connectivity, technology, and innovation are vital when working with cross-border and intra-country truckload freight. For example, comprehensive logistics platforms allow end-to-end tracking and visibility of shipments throughout Latin America. Providing this visibility allows shippers to adapt or make changes down the supply chain when there’s a delay in customs, for example, or inclement weather that holds up the driver. 

Technology tools enable shippers to consistently face obstacles and make decisions more efficiently. 

Keeping risk levels as low as possible is key. Ensuring truckload cargo is safe starts with choosing the right carriers. Additionally, shippers can look at the timing of the arrival and delivery of their freight to further mitigate risk. Analyzing all the relevant aspects of the logistics chain will contribute to success in Latin America.

In addition, it’s important to understand each country’s compliance regulations. 

It’s crucial to partner with companies that have a focus on making the supply chain more sustainable and environmentally friendly. As in other parts of the world, sustainability is important to companies and consumers across Latin America, especially since climate change is one of the biggest challenges facing top markets like agriculture and food production. 

Outlook: Supply chain opportunity in Latin America is continuing to grow, especially in the trucking space. While it’s clear that challenges will continue in 2023, working with a reliable global freight forwarder that offers a global suite of services and has a local presence and understanding of the region can be the difference between success or interruptions in your supply chain when challenges arise. 

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    Ezequiel Blumtritt, Director Product Development, Latin America, C.H. Robinson, Thomas Schoett, Vice President, Latin America, C.H. Robinson

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