Chile Third-Party Logistics (3PL) Market - Growth, Trends, COVID - 19 Impact, and Forecasts (2021 - 2026)

The Chile 3PL Market is segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution) and End User (FMCG, Retail, Fashion and Lifestyle, Technology, Reefer, and Other End Users).

Market Snapshot

Chile 3PL Market
Study Period: 2017-2026
Base Year: 2020
CAGR: 4.78 %

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Market Overview

The Chilean 3PL market is anticipated to register a growth rate of 4.78% during the forecast period (2021-2026). During COVID-19, the Chilean port maritime union highlighted that the country continues to operate smoothly and without significant alterations to imports and exports and the national supply system. However, many airlines that operate in Chile and the world have suspended flights to the areas most affected by the COVID-19, which has hit foreign trade activity by air by 70%. An alternative to mitigate these effects is the use of cargo couriers.

Grocery purchases in supermarkets through the online channel, especially home delivery, have gained strength in Chile. As a result, the market saw an increase of three times the normal demand, especially in restaurants, pharmacies, and supermarkets, with an average increase in the supermarket category in the region of 70%.

Chile has one of the most stable and free-market economies in Latin America. Although logistics in Chile is still on a path to development, import and export operations from the country have increased in the last few years. The country’s perfect geographic location offers excellent potential to countries, like Europe, Asia and South, and Central America, to connect by air, sea, or land. Moreover, there is an increase in exports for fruits, like red cherries, from Chile to other countries, like China, which provides increased opportunities to air cargo providers to enhance their offerings suitable for perishable cargo needs.

According to the OECD, a favorable global environment has contributed significantly to this good performance, i.e., Chile is the world’s leading copper producer, and for many years, it has benefited from an upswing in commodity prices and low international interest rates. Thus, Chile’s growth rate has been above the average for OECD countries. In terms of logistics, Chile has been ranked by the World Bank as the best in Latin America and the Caribbean region. However, it remains below the competitiveness levels of other OECD countries.

Scope of the Report

A 3PL (third-party logistics) provider offers outsourced logistics services, which encompass anything that involves managing one or more facets of procurement and fulfillment activities. 3PL has a broad meaning that applies to any service contract that involves storing or shipping items in the business. A 3PL service may be a single provider, such as transportation or warehouse storage, or it can be a systemwide bundle of services capable of handling supply chain management. The Chilean 3PL market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and end user (FMCG, retail, fashion and lifestyle, technology, reefer, and other end users). The report offers market size and forecasts for the Chilean 3PL market in value (USD billion) for all the above segments.

By Service
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End User
FMCG (Fast-moving Consumer Goods) - (Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.)
Retail (Hypermarket, Supermarket, Convenience Stores, and E-commerce)
Fashion and Lifestyle (Apparel and Footwear)
Technology (Consumer Electronics and Home Appliances)
Reefer (Fruits, Vegetable, Pharma, Meat, Fish, and Seafood)
Other End Users

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Key Market Trends

The E-commerce Industry is Driving the Market

The booming e-commerce industry is a major contributor to the 3PL industry, with services, like e-commerce fulfillment and last-mile delivery.

The increase in e-commerce sales is a result of the country’s rapid technological infrastructure development. Companies of all sizes are adopting e-commerce, with online sales distributed rather evenly among micro-size businesses (13%), small businesses (19%), medium firms (22%), and large companies (22%). The remaining 24% of companies have yet to implement the necessary technology for online sales. Events such as CyberDay further promote e-commerce growth in the region, which, in turn, boosts the 3PL industry.

Digital Agenda 2020 is a Chilean government program to foster the country’s digital transformation by taking advantage of advanced technologies in all aspects of the country’s social and economic activities. Some steps include public-private alliances, investments into the quality and robust infrastructure in all regions of Chile, and widespread IT use as a means to reduce inequalities. Currently, there are free internet zones in 15 regions of the country, providing accessibility and connectivity for local working-class residents. Such initiatives are expected to further facilitate the business environment for 3PL operators in the country.

Chile 3PL Market Trend 1

Rapid Infrastructure Development

As one of Latin America’s most developed economies, Chile continues to record steady economic growth despite the decline in commodity prices, especially with respect to copper, the country’s key export. Moreover, with low levels of corruption, a high degree of legal transparency, and strong institutional frameworks providing strong financial and legal safeguards for private sector capital, Chile is one of Latin America’s most promising investment destinations.

In terms of investment, infrastructure stands out as an attractive sector. This is because the Chilean government places a significant focus on large-scale investment in infrastructure to advance the country’s economic development and prosperity. More specifically, the government hopes to reach its goal of a per capita income of over USD 30,000 with development levels similar to Italy and Spain.

Chile’s infrastructure plans can be divided into three categories: government projects, public-private partnerships (PPP), and concession projects.

Chile has a concession plan with total investments of USD 14,884 million for the period 2019–2023, including 24 highways for USD 9924 million, 18 hospitals for USD 2618 million, 5 trams and cable cars for USD 890 million, 2 dams for USD 823 million, 7 airports for USD 504 million, and 4 cross-sector projects for USD 125 million.

Chile 3PL Market Trend2

Competitive Landscape

The Chilean 3PL market is competitive and fragmented with the presence of many local and international players. Startup companies are expanding their business in the Latin American region through technology-driven services. For instance, in April 2020, Chilean startup, SimpliRoute, secured a USD 3 million Series A round led by VentureCity. Pricing is a key issue in all aspects of logistics and transportation areas in Chile. The need for increased professionalization and more efficient technology has been identified as the challenge for the industry.

Recent Developments

  • September 2020: TecnoRed, a company specializing in service provision and the sale of electrical materials, inaugurated a new 56,510 ft. distribution center in the Chilean city of Valparaíso.
  • October 2020: MercadoLibre launched its first distribution center in Chile, which is expected to become the cornerstone of a USD 100 million logistics development plan that the e-commerce giant has outlined for the next two years.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Impact of COVID-19 on the Market

    3. 4.3 Insights into E-commerce Fulfillment and Last-mile Delivery Market

    4. 4.4 Brief on Key Logistics Hubs in Chile

    5. 4.5 Market Dynamics (Drivers, Restraints/Challenges, and Opportunities)

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Buyers/Consumers

      2. 4.6.2 Bargaining Power of Suppliers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 Domestic Transportation Management

      2. 5.1.2 International Transportation Management

      3. 5.1.3 Value-added Warehousing and Distribution

    2. 5.2 By End User

      1. 5.2.1 FMCG (Fast-moving Consumer Goods) - (Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.)

      2. 5.2.2 Retail (Hypermarket, Supermarket, Convenience Stores, and E-commerce)

      3. 5.2.3 Fashion and Lifestyle (Apparel and Footwear)

      4. 5.2.4 Technology (Consumer Electronics and Home Appliances)

      5. 5.2.5 Reefer (Fruits, Vegetable, Pharma, Meat, Fish, and Seafood)

      6. 5.2.6 Other End Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Shares Analysis and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 Agunsa

      2. 6.2.2 SAAM

      3. 6.2.3 DHL

      4. 6.2.4 Andes Logistics

      5. 6.2.5 Agility Logistics

      6. 6.2.6 DSV SA

      7. 6.2.7 Sitrans Servicios Integrados de Transportes Limitada

      8. 6.2.8 Megalogistica SA

      9. 6.2.9 DB Schenker

      10. 6.2.10 Bertling

      11. 6.2.11 Ceva Logistics

      12. 6.2.12 Noatum Logistics*

    3. *List Not Exhaustive
    4. 6.3 Other Companies

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

**Subject to Availability

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Frequently Asked Questions

The Chile Third-party Logistics (3PL) Market market is studied from 2017 - 2026.

The Chile Third-party Logistics (3PL) Market is growing at a CAGR of 4.78% over the next 5 years.

Agunsa, SAAM, Deutsche Post DHL​, Andes Logistics, Agility Logistics are the major companies operating in Chile Third-party Logistics (3PL) Market.

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