SOUTH AMERICA FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South American Freight and Logistics Market is expected to witness a CAGR of 5.2% during the forecasted period of 2020-2025. The market is segmented BY FUNCTION (Freight Transport, Freight Forwarding, Warehousing, Value-added Services and Other Emerging Areas), BY END-USER (Construction, Oil & Gas and Quarrying, Agriculture, Fishing, and Forestry, Manufacturing & Automotive, Distributive Trade, Others (Pharmaceutical and Healthcare)) and BY COUNTRY (Brazil, Colombia, Argentina, Chile, Rest of South America)

Market Snapshot

market snapshot
Study Period: 2016 - 2026
Base Year: 2021
CAGR: 5.2 %

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Market Overview

The South America freight and logistics market is expected to witness a CAGR of 5.2% during the forecasted period of 2020-2025. The market observes increasing investments in shipping and trucking segments. Many new players have entered the market and with the competitive advantage of digitization, the new players are expected to disrupt the market.

  • New technology companies are poised to transform the shipping and freight industry across South America. Startups like Liftit, a Colombian provider of trucking services, and Nowports, a Mexican freight shipping startup, are angling to be the next Convoy and Flexport — at a time when shipping and logistics business in South America is booming thanks to increasing trade coming from China. Some South American logistics companies (like the Brazilian trucking company CargoX) have gained the attention of large investors like Goldman Sachs, Blackstone Group and Samsung Ventures.
  • South American countries are observing an increasing number of international companies entering and expanding in the region to take advantage of the growing opportunities. Due to the continuous growth of its South American operations, global logistics provider Dachser recently relocated both its Buenos Aires, Argentina regional office as well as its Santiago, Chile regional office to larger facilities.

Scope of the report

The South America freight and logistics market report provides insights on the Drivers, Restraints, Opportunities, Technology Innovation and its Impact, Impact of E-commerce Growth on the Market, Impact of Regulations and Investments on Logistics Sector, Industry Attractiveness - Porter's Five Forces Analysis, Insights on Growth of Intermodal Logistics in the Region and Insights on Courier, Express, and Parcel Segment.

The report also provides quantitative and qualitative information on the segmentations like BY FUNCTION (Freight Transport, Freight Forwarding, Warehousing, Value-added Services, and Other Emerging Areas, BY COUNTRY (Brazil, Colombia, Argentina, Peru, Venezuela, Chile), and BY END-USER (Construction, Oil & Gas and Quarrying, Agriculture, Fishing, and Forestry, Manufacturing & Automotive, Distributive Trade, Others (Pharmaceutical and Healthcare).

BY FUNCTION
Freight Transport
Road
Rail
Sea and Inland
Air
Freight Forwarding
Warehousing
Value-added Services and Other Emerging Areas
BY END-USER
Construction
Oil & Gas and Quarrying
Agriculture, Fishing, and Forestry
Manufacturing & Automotive
Distributive Trade
Others (Pharmaceutical and Healthcare)
BY COUNTRY
Brazil
Colombia
Argentina
Chile
Rest of South America

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Key Market Trends

Ecommerce Growth in the Region

South American countries show improving e-commerce sector helping drive logistics. The growth is attributed to increasing internet penetration and shifting attitudes. In 2019, 155.5 million people in the region are expected to buy goods and services online, which is a dramatic increase from 126.8 million in 2016.

With a population of 427 million, there is an abundance of potential opportunities for e-commerce success in this region. The booming e-commerce growth in recent years took place against a backdrop of a struggling economy. While many wouldn't expect growth in e-commerce during economic unrest, this surge mostly came from the rise in internet penetration and smartphone usage which provided access to goods from abroad that were previously out of reach.

A return to growth, even if it's still in its early stages, provides a better environment for retail than the economic stagnation and contraction of recent years within South America. The region's consumers want premium products and are willing to pay for them. South American consumers are also willing to buy services and digital goods online, but there is still a high degree of openness to the idea of digital shopping for physical goods. After years of recession, there is an increasing demand for e-commerce in South America which is helping drive the logistics sector.

trend 1 south america fnl

Oil and Gas Production Increasing in South America

South America is a key oil and gas producing region and is set to be one of the most important contributors to increased global oil supply over the next few years. The increasing oil and gas output has made the industry a major end-user for logistics sector. Despite the fact that it is a South American country that has seen the biggest non-war inflicted plunge in oil production in recent years Venezuela and other nations on the continent are set to boost their crude oil and natural gas production, thanks to the development of both conventional offshore resources and unconventional shale reserves.

Global oil and gas upstream spending is expected to rise by 6% this year, which would be the third consecutive year of modest spending increase after the plunge in 2015-2016. According to the IEA, upstream spending in Latin America is set to rise by just over 10% this year, mostly thanks to higher investments in Brazil, Guyana, Argentina, and Colombia. Brazilian state-held oil firm Petrobras said in its five-year strategic plan that it would lift spending, while international oil companies are increasing their activities offshore Brazil.

The biggest producer in the region, Brazil, was the only country that boosted production despite the oil price downturn, thanks to investments in the Lula (x-Tupi) project made before the 2014 oil price crash. Brazil will also see production growth in the short to medium term, thanks to the Buzios, Iaram, and Mero (Libra NW) projects. Another large economy in South America—Argentina—is also set to see increased liquid production, both oil and natural gas, thanks to the greater development of the Vaca Muerta shale play.

South America, despite economic woes in some countries, is set to boost its oil and natural gas production over the next few years, supporting the rig, FPSO, and oilfield services market which will, in turn, increase the logistics spend of the sector.

trend 2 south america fnl

Competitive Landscape

The South America freight and logistics market is expected to be fragmented with the presence of local and international players. The market is observing an increasing number of players expanding their services to gain a competitive advantage. Additionally, the number of digitally powered players are increasing their operations to compete with traditional players. The South American countries are developing the logistics infrastructure and this is expected to boost market activity to take advantage of the available opportunities in the region.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    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 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Technology Innovation and its Impact

    4. 4.4 Impact of Ecommerce Growth on the Market

    5. 4.5 Impact of Regulations and Investments on Logistics Sector

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

    7. 4.7 Insights on Growth and Development of Intermodal Logistics in the Region

    8. 4.8 Insights on Courier, Express, and Parcel Segment (with market size)

  5. 5. MARKET SEGMENTATION

    1. 5.1 BY FUNCTION

      1. 5.1.1 Freight Transport

        1. 5.1.1.1 Road

        2. 5.1.1.2 Rail

        3. 5.1.1.3 Sea and Inland

        4. 5.1.1.4 Air

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Other Emerging Areas

    2. 5.2 BY END-USER

      1. 5.2.1 Construction

      2. 5.2.2 Oil & Gas and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Manufacturing & Automotive

      5. 5.2.5 Distributive Trade

      6. 5.2.6 Others (Pharmaceutical and Healthcare)

    3. 5.3 BY COUNTRY

      1. 5.3.1 Brazil

      2. 5.3.2 Colombia

      3. 5.3.3 Argentina

      4. 5.3.4 Chile

      5. 5.3.5 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 XPO Logistics

      2. 6.2.2 DHL

      3. 6.2.3 DACHSER

      4. 6.2.4 Fedex

      5. 6.2.5 Kuehne + Nagel

      6. 6.2.6 Ceva Logistics

      7. 6.2.7 Gefco

      8. 6.2.8 Agility Logistics

      9. 6.2.9 JSL SA

      10. 6.2.10 Rumo SA

      11. 6.2.11 TADEU LOGiSTICA

      12. 6.2.12 Latam Airlines Group

      13. 6.2.13 Aerolineas Argentinas SA

      14. 6.2.14 AGUNSA

      15. 6.2.15 INTERSERVICIOS SAS

      16. 6.2.16 Servosa Cargo

      17. 6.2.17 NUEVO CENTRAL ARGENTINO SA

    3. *List Not Exhaustive
    4. 6.3 List of Other Local Players in the Region

  7. 7. APPENDIX

    1. 7.1 GDP Distribution, by Activity

    2. 7.2 Insights on Capital Flows

    3. 7.3 Economic Statistics - Transport and Storage Sector Contribution to Economy

    4. 7.4 External Trade Statistics - Export and Import, by Product

  8. 8. DISCLAIMER

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Frequently Asked Questions

The South American Freight and Logistics Market market is studied from 2016 - 2026.

The South American Freight and Logistics Market is growing at a CAGR of 5.2% over the next 5 years.

XPO Logistics, DHL, Latam Airlines Group, Rumo SA, Aerolíneas Argentinas S.A. are the major companies operating in South American Freight and Logistics Market.

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