Peru Freight and Logistics Market Size

Peru Freight & Logistics Market Analysis

The Peru Freight and Logistics Market size is expected to grow from USD 25.81 billion in 2023 to USD 36.97 billion by 2028, at a CAGR of 7.45% during the forecast period (2023-2028).

• Peruvian logistics is pulled back by logistical cost overruns, increasing final prices, and a loss of competitiveness. It is necessary to implement regulations to reduce the logistic cost overruns that exporters and importers pay. The COVID-19 pandemic had an impact on numerous businesses. In most industrial units worldwide, it caused the closure or suspension of their manufacturing activity. The COVID-19 pandemic greatly impacted the manufacturing, food and beverage, aviation, automotive, and other industries, influencing the logistics sector.
• The high agricultural exports and the plans to increase the exports further by the government are major drivers for the logistics industry growth. Peru's volume growth across all freight transport sub-sectors is anticipated to slow down in 2023 due to the conflict between Russia and Ukraine and the consequences of a worldwide economic slowdown. In the near term, air freight will increase at the fastest rate. However, all four categories are anticipated to show indications of recovery in 2024 before stabilizing at expansion levels, sustainable in the longer run.
• Real trade growth will fluctuate over the medium term before seeing some contractions after the forecast period. Activity over the medium term will be influenced by economic recovery in the market's major trading partners, such as Mainland China.
• The likelihood of fewer business-friendly regulations, however, could impact future growth. In the meantime, Peru is dedicated to expanding its transportation infrastructure to keep its position as a significant regional commerce hub and guarantee that supply chains consist of various freight options. Most freight will continue to be transported by road, albeit if ambitious initiatives are successful, the rail sub-sector may play a larger role.
• Peru's Ministry of Transport and Communications (MTC) effectively managed its allotted budget, reiterating its commitment to closing gaps in its road, airport, port, rail, and telecommunications infrastructure. The ministry spent SOL 1.841 billion (USD 48.36 million) in December, around 5% more than it did during the same period in 2020.
• The amount invested in the transportation and communications industry in December 2021 was SOL 1.094 billion (USD 28.75 million). It resulted in a cumulative annual total of SOL 8.277 billion (USD 217.5 million), around 69% more than the record-breaking amount invested in 2020. The national and regional road network's maintenance activities for concession and non-concession roads and other current expenditure-related items came to SOL 748 million (USD 19.66 million).