As part of our commitment to provide you with the most up-to-date and relevant information on the logistics industry, we share our Market Update on the Latin American market. You will find information and interesting data on the update of the state of the ports, the most important transport routes and relevant news. We hope you'll find the following information helpful, as well as inspiring to boost your business and keep your cargo moving.

Topic of the Month:
2023 in Review: A recap of 2023s Topics of the Month

As we approach the end of the year, we want to recap this remarkable year's topics of. In this topic of the month, we invite you to this retrospective journey where we will summarize each months highlights to get an overview of what this year brought us in Latin America.

Reopening of the market:

In January we shared with you how 2023 started witnessing a significant shift in China's approach to Covid-19, making the end of its rigorous Zero COVID policy. As the country reopened its economy, this sudden change brought considerable uncertainties, especially in the world of supply chains. This article exposed the possible scenarios arising from China´s economic reopening and examined how companies can navigate the challenges. Notably, the abrupt lifting of restrictions led to widespread celebrations and travel, coinciding with the Lunar New Year, leading to factory closures and decreased production at the start of the year. The aftermath of these challenges was foreseen to be manifested in labor shortages, supply chain disruptions, and a surge in COVID-19 cases, impacting various sectors including retail, manufacturing, catering, hospitals, and delivery services. As the situation evolved, businesses were proactively developing contingency plans to mitigate disruptions and ensure the continuity of their operations and inventory in the face of the unfolding challenges in China´s dynamic economic landscape. To read more about this article, click here.

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The journey of Valentine´s Day flowers:

In February, we shared with you the aftermath of Valentine´s Day, and we questioned if you have ever wondered about the journey of the flowers adorning your space? In Valentine´s Day month, we focused on the logistics behind transporting flowers from South American farms to local flower shops worldwide. Colombia, a significant player in the global cut flower market, witnessed a remarkable export surge. The logistics involved in preserving the freshness of these delicate blooms during transport, by air or sea, is a complex yet crucial process. As the demand for flowers surged during the pandemic, ocean and air transport played a pivotal role in catering from Latin America to destinations like Europe, Asia, and North America.

Maintaining an unbroken cold chain technology emerged as a vital component in preserving the flowers' quality and longevity during their journey. Click here, to read more about the importance of having a reliable logistics partner equipped with technology to ensure the seamless and efficient transportation of these cherished floral gifts.

Nearshoring, Reshoring and Friendshoring:

During the first quarter of 2023, geopolitical situations and disruptions due to the pandemic impacted the global logistics world. Therefore, Nearshoring, reshoring, and friendshoring were more popular. Nearshoring involves relocating operations to a nearby country with a shared border, promoting quicker access to the market and financial benefits by sidestepping import costs. Reshoring, on the other hand, sees businesses bringing their operations back to the consumer country. Friendshoring, born from geopolitical tensions, entails rerouting supply chain routes to politically and economically stable countries. Latin America emerged as a promising region for manufacturers considering, reshoring, offering benefits like close time zones, geographic proximity, robust labor pool, and sustainability. Read more on how, in the Latin American context, reshoring presents great opportunities serving not only the regional market but also North American and European countries.

Green Logistics:

This topic of the month explained the synergy between logistics and sustainability and took center stage in the world's commemoration of Earth Day on April 22nd. Acknowledging the significant carbon footprint attributed to the transport sector, Maersk addressed the urgency to adopt greener practices. Earth Day is a reminder that sustainability is an ongoing commitment rather than a one-day event for Maersk. Learn more about the company´s continuous efforts to find environmentally friendly ways to transport cargo. Recognizing the importance of reducing carbon emissions in the supply chain, the article outlines the steps, including data gathering, collaboration with supply chain partners, compliance with regulations, and implementing traceability tools like the Emissions Dashboard. Maersk´s dedication to sustainability extends to developing alternative fuels and ambitious targets for achieving industry-leading green customer offerings and net zero operations by 2040.

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Digitalization in the supply chain:

In the ever-evolving world of logistics, for this topic of the month, we focused on the digital transformation of the supply chain, exploring the implications, benefits, and challenges of embracing new technologies. Digitalization involves incorporating advanced analytics, artificial intelligence, and automation to enhance efficiency, transparency, and decision-making across the logistics spectrum. This process shifts analog processes to digital ones, integrating master data and external information to optimize the entire supply chain, from production to customer delivery. The benefits of digitalizing the supply chain include increased responsiveness, collaboration, standardization, and efficiency.

However, these advantages come with challenges, such as adapting to new processes and structures. That is why it is essential to choose the right logistics provider and partner. As the logistics landscape continues to evolve, embracing digital transformation becomes crucial for staying agile, responsive and efficient in the dynamic world of logistics.

There´s no dead end with end-to-end logistics solutions:

In June, we covered efficient and seamless supply chain management, also called E2E logistics, and how it plays a crucial role in the logistics world, encompassing everything from raw materials to the final product reaching consumers. End-to-end logistics involves coordinating various activities from planning to delivery, engaging stakeholders in planning, procurement, production, distribution, transportation, and customer delivery. End-to-end logistics offers numerous advantages, including agility, flexibility, adaptability, and sustainability. Collaborative visibility not only enhances customer satisfaction by providing real-time information but also fosters transparency and trust. Partnering with the right logistics provider is paramount for successful E2E logistics, offering insights, transportation, options, warehousing solutions, and assistance during disruptions, ultimately providing a solid foundation for navigating the complexities of the supply chain.

Peak Season in Logistics, Understanding the phenomenon and its implications:

Peak season in logistics is typically from August to November, representing a crucial and profitable time for supply chain industries worldwide. This period witnesses a yearly heightened consumer buying behavior associated with summer clearance, back-to-school, and holiday season purchases. It is crucial to have adequate preparation with a clear plan for investment, inventory, and sales forecasting to navigate the increased stock movements and disruptions caused by factors such as seasonality, regulatory changes, geopolitical issues, and weather conditions. Despite economic uncertainties, planning for the 2023 peak season was focused on early preparation, agility, and visibility. Constant communication with supply chain stakeholders, exploring alternative cargo movement options, and leveraging technology for enhanced visibility were recommended strategies. A key aspect is partnering with an end-to-end service provider that promotes resilience in logistics, transitioning from “just in time” to “just in case” strategies, ultimately ensuring a smoothly running supply chain during the approaching peak season. Read the topic of the month here.

Supply Chain Integration:

On this month's topic of the month, we explained how supply chain integration involves bringing together various stakeholders in a single system to enhance efficiency, cost savings, and productivity across different aspects of the supply chain, including raw materials, finances, and customer satisfaction.
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The process requires coordination and alignment among stakeholders to ensure a unified approach to handling the supply chain. The importance of integration lies in its ability to reduce disruptions, increase profit margins, meet customer demand, and enhance flexibility. Choosing the right partner for supply chain integration is crucial as it provides ease, flexibility, and visibility, contributing to strategic planning and business growth. An ideal partner helps anticipate seasonality, offers insights into market trends, recommends solutions, and supports expansion into new markets, exemplified by the services of a unified provider. To read more about the benefits and challenges of an integrated supply chain, click here.

Supply Chain Visibility:

In an interconnected world facing global challenges, supply chain visibility has become a cornerstone for business strategy and resilience. This month´s topic explained the concept of visibility in logistics, emphasizing how transparency and control are game-changers for ensuring cargo reaches the right place at the right time. Supply chain visibility involves tracking cargo at each stage, empowering stakeholders to make informed decisions, and enhancing agility and resilience. The benefits of embracing visibility include improved strategic planning, strengthened partnerships, heightened customer satisfaction, increased operational efficiency, and the ability to meet sustainability goals. At the end, we shared a podcast that further explored the advantages of complete visibility in the supply chain.

The Year of the Dragon

As the logistics world gears up for the upcoming Chinese New Year (CNY) in 2024, a significant annual event causing a production and shipping pause in China, this month´s topic explores the preparation and expectations for the Year of the Dragon. It will be celebrated on February 10, 2024. The CNY will prompt a temporary closure of factories, allowing workers to celebrate with their families. To mitigate challenges, the logistics industry aims to adapt and embrace technology to diversify transportation, redefine inventory management, and foster collaboration in 2024. Planning involves early preparations, effective communication, strategic inventory management, identification of alternative suppliers, advanced bookings, and developing contingency plans. Proactive planning, diversification, and collaboration, coupled with the support of logistic integrators like Maersk, are crucial for minimizing disruptions, ensuring continuity, and maintaining customer satisfaction during the Chinese New Year. To read more, click here.

Building resilience and the importance of partnering with the right logistic provider

In the logistics world, adaptability and ease are crucial for navigating complexities and unforeseen disruptions. Building resilience and the options available for partnering to achieve a seamless supply chain operation is vital nowadays. The discussion introduces the concepts of 4PL and 3PL in logistics, highlighting the evolution from delegating specific supply chain activities to more comprehensive external management.

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Outsourcing logistics to strategic partners can be a robust ally in having resilience, offering benefits such as risk mitigation through diversified networks, access to expertise, adaptability to market conditions, sustainability solutions, and increased efficiency by covering fixed costs into variable ones. The role of an integrated logistics provider becomes crucial in ensuring agility and adaptability for sustained success. Choosing the right partner involves seeking and service provider that understands the business insights, collaborates to facilitate growth or market expansion, and offers a tailored approach aligned with the uniqueness of the business.
As we almost close 2023, it is evident that the year unfolded with different insights from planning, management, digitalization, and the importance of partnering with the right logistics provider to having visibility, building resilience, end-to-end logistics, and many others. Looking back on 2023 topics, it becomes clear that these themes will remain central to successful logistics operations in the year ahead. The dynamic nature of the logistics world calls for a continuous exploration of strategies and solutions, so stay tuned to our next year's Topics of the Month, were we will bring monthly actual topics that can help you navigate the logistics world. Until next year's first topic of the month!

Ocean updates

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Trade lane Comments
Trade lane
West Coast to Intra-Americas
Comments
Maersk is changing operations in Ecuador in 2024, moving it from Guayaquil to Posorja. The change was announced earlier in December. The Conosur service will continue calling GYE, attending the South American routes (Brazil, Argentina, Chile, Perú, and Ecuador).
Trade lane
North America to Intra-Americas
Comments
Maersk is launching a new direct weekly service from Port Everglades, FL, to Jamaica and Venezuela, with the most competitive transit times in the market, effective December 20. Weekly direct service from Port Everglades to:
  • La Guaira, Venezuela (5-day transit time) and Puerto Cabello, Venezuela (7-day transit time)
  • Kingston, Jamaica (2-day transit time)
Trade lane
West Coast to North America
Comments
Maersk is adding a new port on the Atacama service, starting January 9th, we will be calling Coquimbo, allowing us to have better transit time to the main market is North America.
Trade lane
Intra-America to Caribbean
Comments
Maersk is offering a weekly call to Puerto Cabello, Venezuela. We added a Puerto Cabello call to the rotation of La Guaira Feeder (U6C) under the following rotation: Manzanillo, PA – Cristobal, PA – Cartagena, CO – La Guaira, VE – Puerto Cabello, PA – Manzanillo, PA
Trade lane
Central America to North America
Comments
Maersk is launching a new direct service from Central America to Port Everglades, FL, effective December 20. With this added Bonita service, alongside the South Atlantic Express (SAE), Maersk will now offer the Central America markets two weekly sailings to South Florida.
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Main port status

Regarding Latin American ports, in ECSA, the Navegantes port is hugely affected by bad weather and sometimes performs some contingency, causing issues for other ports.
In Paranagua and Itapoa, the vessels out of the berthing window might wait up to 2 days for berthing. Vila do Conde is impacted by yard density caused by cargoes from Manaus once the terminal is closed due to the lack of water in the river. Ushuaia has some congestion during the Cruise vessel season and some strikes of port employees.

For CARPAC, the most impacted terminals are in Mexico because of the bad weather

Panama Canal:
working with DRAFT RESTRICTION:

The maximum authorized draft of 13.41 m (44.0 feet) TFW will remain in effect in the Neopanamax locks until further notice. No impact in draft for Panamax.
Backlog of vessels to transit through the PANAMAX LOCKS- No Maersk line vessels waiting in queue since there are bookings made to protect the dates of transit.

In Asian ports, there have been improvements, and no significant waiting times have been reported. In North Europe, ports are currently operating without major disruptions or significant waiting times. In South Europe, the RIJEKA is the most affected terminal by WT vessels can wait between 48-96 hours to berth depending on the lineup For North America most of the terminals might be impacted around 1-3 days by the winter season.

Port Status

Less than 1 Day 1-3 Days 4 - 7 days More than 7 days
Latin America
Less than 1 Day
Terminals which is not mentioned with WT over 1 day
1-3 Days
Paranagua, Itapoa, Vila do Conde, Mexican Ports, Ushuaia
4 - 7 days
Navegantes
More than 7 days
Manaus
Rest of World
Less than 1 Day
Asian Ports, North Europe Ports, South Europe ports with Rijeka as exception.
1-3 Days
North American Ports.
4 - 7 days
RIJEKA
More than 7 days
(*) - cargo connections can be impacted considering the delays reported
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Landside updates

Central America, Andina and the Caribbean Sea Area

In central America the Melon season is starting, and for Colombia, Avocado is in high season.
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Air updates

Central America, Andina and the Caribbean Sea Area

Air capacity ex-CO, Central America & Caribbean remains sufficient with no backlog for any export operation. Regarding imports, there are busy origins such as Asia Pacific and Brazil.

West Coast South America

Air capacity ex CL is critical due to cherry season, which is expected to last until the end of December. Air capacity from PE, BO, and EC is reduced due to peak season but isn't critical. Import capacity to WSA is unstable due to peak season, mainly from Asia.
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Highlights

Decarbonizing Latin America's Supply Chains

Find out how counting with a strategic logistics partner can help you on your journey to decarbonize your supply chains, and how we at Maersk are committed to provide our customers with 100% green solutions by 2024.

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Fruit Attraction 2023 – what we learned

Fruit Attraction 2023 has drawn to a close, with more than 90,000 visitors from 135 countries gathering for the 15th anniversary of the flagship event in Madrid. And it’s fair to say, it didn’t disappoint. Here’s what we learned.

Read more

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Project logistics for Latin America’s renewable energy sector

Latin America is taking big strides in the production of renewable energy. Its commitment to the cause of a sustainable tomorrow is evident: 30% of the region’s energy comes from renewable sources.

Read more

Learn more from the global Maersk team

Learn what’s happening in our regions by reading our Market Updates by region.

Europe
North America
Asia Pacific

Be sure to visit our “Insights” pages where we explore the latest trends in supply chain digitization, sustainability, growth, resilience, and integrated logistics.

Anything you need, we’re here to help

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