BRAZIL 3PL MARKET Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Brazil has a network of more than 1.7 million km of federal roads, the fourth-largest system in the world after the United States, China, and India, and it relies on its highways and backroads for the transportation of 90% of its ton-mile cargo nationally, using rail for less than a tenth. Brazil is the world’s most dangerous country for drivers due to poor road standards. The poor maintenance of the roads is one of the major barriers for the operations and development of 3PL service providers in the country.

The logistics companies in Brazil are aggressively focusing on the integration of AI in their operations to facilitate on-demand delivery to the consumers. The smart-freight vehicles are equipped with sensors that collect data and feed it into a machine-learning application, which analyzes the data and facilitates real-time decision making. These sensors monitor the brake performance, motor temperature, and other conditions to predict the performance and maintenance of the vehicle. The system is more accurate, as it feeds on real-time data on the condition of the vehicles rather than set metrics as distance travelled.

Loggi, the Latin American unicorn, started with the challenge of solving logistics problems of continent-sized countries like Brazil. It is now operating with more than 100 million deliveries per day, covering about 35% of the Brazilian territory and big clients, like Mercado Libre, Carrefour, Burger King, and McDonald’s. It is also planning to go further, not only by delivering all over Brazil but also by focusing on getting it done in a very short period, giving a healthy competition to the 3PL companies operating in the market.