LATIN AMERICA CUSTOMS BROKERAGE MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST(2022 - 2027)

The Latin American Customs Brokerage Market Is Segmented by Mode of Transport (Ocean, Air, and Cross-border Land Transport), End User (Automotive, Chemicals, FMCG, Retail, Fashion and Lifestyle, Technology, Reefer, Technology, and Other End Users), and Country (Mexico, Brazil, Chile, Colombia, Panama, and Rest of Latin America). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

Latin america Customs
Study Period: 2017-2026
Base Year: 2021
CAGR: 2.25 %

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Market Overview

The COVID-19 pandemic has affected many aspects of the international trade of Latin America, including supply chain management, manufacturing, importing, exporting, customs, and logistics. Complex regulations and bureaucratic procedures are being streamlined due to COVID-19-induced digitization. Before the pandemic, the electronic transmission of data prior to the arrival of goods to customs was rare in the region, outside of express mail. Combating the pandemic required countries to expedite the clearance and release of medicines, diagnostics, kits, and equipment. Customs organizations in countries including Peru, Panama, Colombia, and Chile quickly suspended their deadlines and procedures to prevent goods from falling into legal abandonment.

For shippers entering the Latin American market, friction at the border can be striking. The bureaucracy and the outdated clearance practices often result in lengthy customs delays. This has led to rampant corruption, with many customs officials known to ask for bribes to expedite the clearance of goods.

The companies operating in the logistics sector across various end users are proactively adopting the latest technologies and software platforms to carry out customs processes like documentation and customs clearance efficiently.

The rapid growth in last-mile deliveries and the seamless, fast, and end-to-end deliveries in the logistics market are some of the main drivers for the sudden growth in the number of companies offering specialized customs brokerage services as a part of their portfolios.

The growing adoption of IoT-enabled connected devices and the increasing adoption of tech-driven logistics services drive the growth of the Latin American customs brokerage market. In addition, the development of the e-commerce industry and the increase in reverse logistics operations boost the market growth. However, the lack of control of manufacturers on logistics services hinders the growth of the market.

Scope of the Report

Customs brokerage is the regulatory clearance of shipments and the delivery of goods across international borders for organizations and individuals. These brokers have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.

The Latin American customs brokerage market is segmented by mode of transport (ocean, air, and cross-border land transport), end user (automotive, chemicals, FMCG, retail, fashion and lifestyle, technology, reefer, technology, and other end users), and country (Mexico, Brazil, Chile, Colombia, Panama, and Rest of Latin America). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Mode of Transport
Ocean
Air
Cross-border Land Transport
End User
Automotive
Chemicals
FMCG (Fast-moving Consumer Goods - Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.)
Retail (Hypermarkets, Supermarkets, Convenience Stores, and E-commerce Channels)
Fashion and Lifestyle (Apparel and Footwear)
Reefer (Fruits, Vegetables, Pharmaceuticals, Meat, Fish, and Seafood)
Technology (Consumer Electronics, Home Appliances)
Other End Users
Country
Mexico
Brazil
Chile
Colombia
Panama
Rest of Latin America

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Key Market Trends

Increasing Ocean Frieght

Maritime logistics can be considered the backbone of the trade, as it transports around 84% of the volumes traded worldwide, and almost 70% of the global trade value. As reported in August 2020, similar ratios can be found in Latin America and the Caribbean, particularly in the South American and Caribbean sub-regions.

Hence, ports play a significant role in ensuring the wide distribution of goods through supply chains, including those considered essential, such as food and medical supplies.

A significant amount of time is taken by in-country customs and customs brokers to sort goods. As a result, inventory builds up and customs costs can be excessively high, leaving customers frustrated when materials often take too long to arrive.

Latin America customs brokerage market trend1

Growing Retail Sector

International e-commerce is helping lead the growth in the retail sector. Global cross-border e-commerce is projected to account for one-fifth of all online retail sales by 2022. With this increase already underway, retailers are able to expand to new markets and reach new customers in developing regions, like Latin America and Africa.

In Latin America, an increasing number of people have access to the internet due to mobile phones. This is driving the expansion of e-commerce in the region. Though Latin America is a smaller market than North America or Europe, the online sales in this region are expected to grow by over 19% in the next five years.

Latin Americans are showing a willingness to shop internationally online. In 2019, nearly 55% of all Latin American consumers made a purchase from an overseas retailer.

As reported in January 2020, the e-commerce segment is expected to see a double-digit boost in Latin America in the next couple of years, with Mexico and Brazil being the top performers.

Latin America customs brokerage market trend2

Competitive Landscape

The market is fragmented, with the presence of many domestic companies. Some countries are open to trade with simple customs laws that are easy to understand and execute. Others use customs as a barrier to controlling trade and source of revenue. They continually enforce new fees or penalties. The suppliers in the customs brokerage industry in Latin America are observing a high demand due to the exponential growth of industries, such as chemicals, pharmaceutical, FMCG, and packaging.

Recent Developments

In May 2020, Dachser de México SA de CV, a subsidiary of Dachser, a global logistics solution provider, announced the addition of customs house brokerage services to its portfolio.

In Q4 2020, the Rhenus Group, a leading global logistics service provider, expanded its Air & Ocean Division for the Americas to include Mexico City. The new branch offers cross-border services to facilitate trade between the United States and Mexico.

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 (Current Scenario of Customs Brokerage Market in Latin America)

    2. 4.2 Government Regulations and Initiatives (Related to Logistics and Logistics Infrastructure Development and Its Impact)

    3. 4.3 Impact of COVID-19 on the Market (Short-term and Long-term Effects on the Market)

    4. 4.4 Technological Trends (Global and Regional-level Insights)

    5. 4.5 Review of Customs Brokerage Costs as Percentage of Total Logistics Spend

    6. 4.6 Overview of Customs Pricing

    7. 4.7 Brief on Customs Brokerage-related Software (Key Software Providers and Trends in the Global and Regional Market)

    8. 4.8 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 Mode of Transport

      1. 5.1.1 Ocean

      2. 5.1.2 Air

      3. 5.1.3 Cross-border Land Transport

    2. 5.2 End User

      1. 5.2.1 Automotive

      2. 5.2.2 Chemicals

      3. 5.2.3 FMCG (Fast-moving Consumer Goods - Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.)

      4. 5.2.4 Retail (Hypermarkets, Supermarkets, Convenience Stores, and E-commerce Channels)

      5. 5.2.5 Fashion and Lifestyle (Apparel and Footwear)

      6. 5.2.6 Reefer (Fruits, Vegetables, Pharmaceuticals, Meat, Fish, and Seafood)

      7. 5.2.7 Technology (Consumer Electronics, Home Appliances)

      8. 5.2.8 Other End Users

    3. 5.3 Country

      1. 5.3.1 Mexico

      2. 5.3.2 Brazil

      3. 5.3.3 Chile

      4. 5.3.4 Colombia

      5. 5.3.5 Panama

      6. 5.3.6 Rest of Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration Overview, Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 Grupo Ei

      2. 6.2.2 Livingston International

      3. 6.2.3 Farrow

      4. 6.2.4 Onyx

      5. 6.2.5 Rota Brasil

      6. 6.2.6 Ibercondor Forwarding SA de CV

      7. 6.2.7 Masilog Customs and Foreign Trade Solutions

      8. 6.2.8 Elemar

      9. 6.2.9 Grupo Coex

      10. 6.2.10 Servicios de Aduanas Jiménez

      11. 6.2.11 Aduana Cordero

      12. 6.2.12 Sucomex SA

      13. 6.2.13 Deutsche Post DHL Group

      14. 6.2.14 DSV Panalpina AS

      15. 6.2.15 Expeditors International

    3. *List Not Exhaustive
    4. 6.3 Other Companies (Key Information/Overview - List of Key Small to Medium-scale Players in Each Country)

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

    1. 8.1 Key Border Ports in the Region (Country-level)

**Subject to Availability

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Frequently Asked Questions

The Latin America Customs Brokerage Market market is studied from 2017 - 2026.

The Latin America Customs Brokerage Market is growing at a CAGR of 2.25% over the next 5 years.

DHL, Livingston International , Expeditors International, Grupo FH (Fernández Hinojosa y Cia.), Rago Group are the major companies operating in Latin America Customs Brokerage Market.

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