LATIN AMERICA CONTRACT LOGISTICS MARKET – GROWTH, TRENDS, COVID-19 IMPACT, and Forecasts (2023 - 2028)

The Latin America Contract Logistics Market is segmented by Type (Outsourced and Insourced), End User (Manufacturing and Automotive, Consumer Goods and Retail, Hi-tech, Healthcare and Pharmaceuticals, and Other End Users), and Country (Mexico, Brazil, Colombia, Chile, and Rest of Latin America).

Latin America Contact Logistics Industry Overview

CAGR
Study Period: 2019 - 2028
CAGR: > 3.5 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Latin America Contact Logistics Market Analysis

The Latin American contract logistics market is expected to exhibit a growth rate of more than 3.5% during the forecast period. During the COVID-19 pandemic, due to lockdowns, there has been an increase in demand for online shopping in several areas in Latin America, which requires the manufacturing, food and beverage, and logistics sectors to streamline their supply chains, providing the consumers with an increase in speed and accuracy of order processing and delivery.

The rapid growth of international trade of perishable goods, technological progress in transportation and storage facilities, and infrastructure development support by the government are the major driving factors for the growth of the Latin American contract logistics market. The increased implementation of tech-driven logistics services and IoT-enabled connected devices are accelerating the growth of the market. However, lack of infrastructure and high cost of logistics services hinder the market growth.

Latin America Contact Logistics Industry Segments

Contract logistics refers to the outsourcing of resource management tasks to a third-party company. Contract logistics companies handle activities such as designing and planning supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory, and even providing certain aspects of customer service.

The report provides a complete background analysis of the Latin American contract logistics market, which includes an assessment of the economy, emerging trends by segments and regional markets, significant changes in market dynamics, market overview, and company profiles. The report also covers the impact of COVID - 19 on the market.

The Latin American contract logistics market is segmented by type (outsourced and insourced), end user (manufacturing and automotive, consumer goods and retail, hi-tech, healthcare and pharmaceuticals, and other end users), and country (Mexico, Brazil, Colombia, Chile, and Rest of Latin America).

By Type
Insourced
Outsourced
By End User
Industrial Machinery and Automotive
Food and Beverage
Chemicals
Other End Users
By Geography
Mexico
Brazil
Colombia
Chile
Rest of Latin America

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Latin America Contact Logistics Market Trends

This section covers the major market trends shaping the Latin America Contact Logistics Market according to our research experts:

Growth in the Automotive Sector is Spearheading the Market

Countries like Brazil, Colombia, and Argentina have been facing political and economic crises leading to a downturn in the growth of the automotive sector. However, Mexico, despite sluggish economic growth, has been laying a solid ground for growth in the automotive sector. The country’s competitive manufacturing costs, compact supply chain, and transport links to the United States have made it a huge recipient of automotive investment, especially as an export hub to the United States and Canada.

The region has Mexico and Brazil with the most developed automotive sectors – Mexico produced about 4 million motor vehicles in 2019, while the production in Brazil added up to almost 3 million units that year. In fact, these two Latin American countries ranked amongst the largest motor vehicle producers worldwide, with Ford, Volkswagen, and Toyota among the leading players in Latin America.

Such growth in the sector is strongly demanding the involvement of the contract logistics players to support the transportation and storage of the vehicles and parts to the domestics as well as international markets.

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Focus on Last-mile Cost Reduction

The growing e-commerce market in the Latin American region is leading the logistics players in the region to focus on warehousing, inventory management, and modes to provide faster deliveries incurring the least cost. The sector demands the logistics players to position their warehousing closer to city centers to facilitate same-day delivery services.

Implementation of big data management in the sector lowers costs, speeds fulfillment, and improves accuracy. E-commerce in Latin America also creates opportunities for legacy logistics providers.

In Latin America, logistics companies face huge traffic issues and spend a great deal of time finding and identifying un-named streets. Companies like Rappi, Chazki, and CargoX are developing in the market with their network of drivers and vehicles to deliver items leading towards a market to drop their pricing.

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Latin America Contact Logistics Market Competitor Analysis

The Latin American contact logistics market is fairly fragmented, with various domestic and international players, including AP Moller, DB Schenker, and DHL Supply Chain. Even though these major players have a strong footprint across the region and account for significant market share, the market is still fragmented to some extent, with many players providing contract logistics services at different levels. The companies in the sector are following the trend of acquisitions in order to grow and be competitive in the market.

Latin America Contact Logistics Market Top Players

  1. DB Schenker

  2. DHL Supply Chain

  3. CH Robinson

  4. FedEx

  5. GEODIS

*Disclaimer: Major Players sorted in no particular order

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Latin America Contact Logistics Market Recent Developments

July 2020: CEVA Logistics Mexico was appointed to operate a new dedicated warehouse to support IKEA Mexico’s operations in the country. This facility opening is an extension of the existing successful global partnership between CEVA and the world’s largest furniture retailer.

June 2020: CEVA Logistics won an extension to its contract with Volkswagen for the operation of the company’s auto spares center at Vinhedo in Brazil.

Latin America Contact Logistics Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends

    7. 4.7 Insights into the E-commerce Industry in the Region (Both Domestic and Cross-border)

    8. 4.8 Insights into Contract Logistics in the Context of After-sales/Reverse Logistics

    9. 4.9 Spotlight - Freight Transportation Costs/Freight Rates

    10. 4.10 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Insourced

      2. 5.1.2 Outsourced

    2. 5.2 By End User

      1. 5.2.1 Industrial Machinery and Automotive

      2. 5.2.2 Food and Beverage

      3. 5.2.3 Chemicals

      4. 5.2.4 Other End Users

    3. 5.3 By Geography

      1. 5.3.1 Mexico

      2. 5.3.2 Brazil

      3. 5.3.3 Colombia

      4. 5.3.4 Chile

      5. 5.3.5 Rest of Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 DB Schenker

      2. 6.2.2 DHL Supply Chain

      3. 6.2.3 C.H. Robinson Worldwide Inc.

      4. 6.2.4 FedEx

      5. 6.2.5 GEODIS

      6. 6.2.6 United Parchel Services (UPS)

      7. 6.2.7 Kuehne + Nagel International AG

      8. 6.2.8 DSV

      9. 6.2.9 CEVA Logistics

      10. 6.2.10 Penske Logistics*

    3. *List Not Exhaustive
    4. 6.3 Other Companies*

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

    1. 8.1 GVA by Activity for Key Countries

    2. 8.2 Insights into Capital Flows

    3. 8.3 External Trade Statistics - Export and Import by Product

    4. 8.4 Insights into Key Export Destinations

    5. 8.5 Insights into Key Import Origins

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Latin America Contact Logistics Market Research FAQs

The Latin America Contract Logistics Market is studied from 2019 - 2028.

The Latin America Contract Logistics Market is growing at a CAGR of >3.5% over the next 5 years.

DB Schenker, DHL Supply Chain, CH Robinson, FedEx, GEODIS are the major companies operating in Latin America Contract Logistics Market .

Latin America Contract Logistics Industry Reports

In-depth industry statistics and market share insights of the Latin America Contract Logistics Market sector for 2020, 2021, and 2022. The Latin America Contract Logistics Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Latin America Contract Logistics Market report PDF.

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