Latin America Container Terminal Operations Market Size

Latin America Container Terminal Operations Market Analysis

The size of Latin America Container Terminal Operations market is USD 1.7 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period.

• The supply chain in the maritime industry has been facing a series of challenges since the start of the COVID-19 pandemic in early 2020. Port closures due to coronavirus outbreaks, port congestions, rising prices of bunker fuel, and problems with capacity utilization were plaguing the marine port services industry for most of 2020 and 2021. Due to the pandemic, the volume of containers transported shrank by about 0.2 percent in 2020. On the other hand, the recent spike in container freight rates turned out extremely profitable for marine port services operators, who reported record-high profit margins in 2021.
• Container terminal services are very complex and mainly depend upon the nature of shipment and cargo. Cargo can be anything cars, merchandise, crude oil, mineral, and other types.
• The evolution of supply chains and logistics models has caused container terminals to rethink their logistics processes. The concept of ports and their functions have evolved over the decades.
• A different set of machinery, expertise, and workforce is required to handle and manage other types of cargo. The ferry services require different types of ports for their handling. The lack of efficiency in operations at the container terminal is not desirable and can also lead to accidents. So the container terminal operations should be highly efficient and flawless. Therefore container terminal operations are the core of the maritime industry.
• With the advent of digital technology, ports have become more automated, interconnected supply chains, and limited workforce to perform operations. As a result, various investments are being made in port automation to increase port efficiency.
• New technology companies are poised to transform South America's shipping and freight industry. Startups like Newport's, a Mexican freight shipping startup, are angling to be the next Convoy and Flexport - when the shipping and logistics business in South America is booming thanks to increasing trade from China.
• South American countries are observing an increasing number of international companies entering and expanding in the region to take advantage of the growing opportunities.
• The expansion of the Panama Canal has inspired the development of ports in the Latin America and the Caribbean (LAC) region, seeking to capitalize on economic opportunities through maritime trade.