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:
Building Resilience and The Importance of Partnering with the right logistic provider
The logistics world has been constantly changing, and it is important to be able to adapt and have ease in the supply chain to respond to the demand. A business that navigates complex supply chains, volatile market conditions, and unforeseen disruptions has successful operations. In this topic of the month, we will give you some tips on how to build resilience and the different options of partnering up to build a resilient operation to be able to navigate and have a seamless supply chain operation.
4PL and 3PL in logistics
You often hear 4PL and 3PL in the logistics world, and it refers to fourth-party logistics and third-party logistics, respectively, it is an advanced form of logistics where a business outsources the management of its supply chain and logistics functions to a specialized external partner. Traditionally, it started with 3PL where one or more activities in the supply chain operation were delegated, such as transportation, warehousing, or distribution. Then 4PL arrangement came with an external partner, and it came with a more comprehensive role, managing and coordinating all aspects of the supply chain.
The key characteristics of 4PL can be Integration and coordination, where the focus is to optimize the entire logistics network to have efficiency, and effectiveness. It also involves strategic planning, working closely together with the business and its integrator logistic provider. Having End-to-end responsibility helps the business management to focus on the business and the logistic provider manages the supply chain by knowing the company and working together to grow.
In essence 4PL in an orchestration of management and supply chain, during the pandemic, warehousing was one of the most frequently outsourced services, and behind came transportation. You can read more about it in the following article. link
How do you build resilience, and how outsourcing your logistics can be a strong ally?
As we have discussed on our previous topics of the month, the ever-changing world of logistics has been showing us that being able to make quick shifts on the plans is one of the most important things in being resilient. It all started with the pandemic and then, some geopolitical situations that have made this world even more complex. In this sense, having a partner to support you in logistics can be a solid ally to avoid disruptions and plan for different scenarios.
Resilience is not only the ability to endure difficulties but also the capacity to adapt and thrive in the face of adversity. Many organizations focus on their operations, so they find one strategic ally emerges as a powerful tool by outsourcing logistics.
Here are some benefits that you can find when outsourcing your logistics to have ease and resilience in the palm of your hand:
- Risk Mitigation
By outsourcing your logistics, you can have a diversified network of resources available if any unforeseen event disrupts your supply chain. Having access to multiple partners, routes, and a variety of options diminishes the impact of the disruptions, and alternative solutions can be swiftly implemented.
- Know How and Specialization
- Adaptability
Logistics providers can add to your business with their experience and knowledge. By outsourcing, businesses get access to a team of experts who understand each part of the supply chain and ensure an optimized and resilient operation.
With a logistics provider, businesses can have the ability to scale and swiftly quickly to the adaptation required by the market conditions. A logistic provider can help you adjust strategies to align with the organization’s evolving needs.
- Sustainability
- Efficiency
Your logistic provider can help you find a more sustainable way to move or store your cargo by having not only the assets but also the transportation required to reduce the cargo emissions to meet your objectives on sustainability. Here are some clear actions to make your supply chains more sustainable.
Having inhouse operations on logistics brings significant fixed costs, additionally that you don’t have access to the different modalities of transportation or assets, locations, and know-how, which makes you slower and more expensive than having someone that takes car of that by outsourcing it. This helps you convert fixed costs into variable ones and, therefore, more cost-efficient.
According to a Harvard Business Review report, 52% of the respondents on a global scale still rank enhancing resilience in their supply chains as a top priority. Since it not only helps the business managers to focus on their expertise but also gives you a variety of options in case of any disruption. As organizations embrace the imperative of resilience, the role of an integrated logistics provider becomes crucial, ensuring the agility and adaptability required for sustained success in the dynamics of the logistics world.
Outsourcing your supply chain:
As you have seen the benefits are for the growth of your organization not only in the business but also in new markets. You can also see it reflected in your customers’ satisfaction by having the products at the right time and in the right place.
Here, you can find how San Miguel, the Argentinian largest citrus producer, partnered with Maersk and has successfully overcome supply chain complexities despite the latest disruptions. https://www.maersk.com/news/articles/2021/03/02/partners-in-growth-maersk-4pl-for-san-miguel
How to choose the right partner
Once you have decided to look for a partner and outsource your logistics, you need to spend time looking for the right service provider that can give you what you and your business are looking for.
Nowadays, the services offered by a logistic integrator must give you the time and tranquility to focus exclusively on the core of your business rather than spending time and assets on logistics. You have to look for someone that knows the business insights in terms of logistics and that is eager to collaborate to make your business grow or expand to new markets.
The importance of partnering with a company that can provide the uniqueness that your business requires. Being capable of delivering the uniqueness tailored to your business can not be overstated. All businesses are different, and with the ever-changing world of logistics, it is important to have a partner that knows your business and has a global infrastructure to help you make decisions to be in the right place, at the right time.
A strategic partnership with a company tha knows the needs of your business ensures not only the provision of products or services but also a comprehensive understanding of your specific needs. A partner aligned with the uniqueness of your business becomes an extension of your team, contributing to the creation of a competitive edge. From addressing specific industry requirements to navigating complex market dynamics, a tailored approach not only meets your current needs but also positions your business for future success and sustained growth.
Find out more on how you can partner up with Maersk as your logistics provider at https://www.maersk.com/logistics-solutions.
Ocean updates
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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:
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The Manaus River situation is improving; therefore, we are resuming our operations in that port, with draft limitations.
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The Manaus River situation is improving; therefore, we are resuming our operations in that port, with draft limitations.
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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
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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
ECSA (East Coast of South America):
Ports like Santos, Paranagua, Itapoá, Navegantes, Vila do Conde, Rosario, and Zarate experience significant delays, often exceeding 24 hours due to adverse weather conditions. Vessels operating outside the designated berthing window might encounter even longer waiting times.
WCSA (West Coast of South America):
Parana Ports: Facing disruptions due to local protests.
Panama Canal: Low water levels are impacting vessels without prior bookings, leading to waiting times of up to 10 days, depending on vessel size.
Mexican Ports: Adverse weather conditions contribute to waiting times ranging from 3 to 5 days.
NAM (North American) East Coast:
Inclement weather causes congestion at ports, resulting in waiting times of approximately 1 to 4 days.
NAM (North American) West Coast:
Port congestion due to low productivity leads to waiting times averaging between 1 to 2 days.
FEA (Far East Asia):
Port congestion leads to waiting times averaging between 1 to 2 days
SEU (Southeast Europe), the key affected ports are KOPER, RIJEKA, and TRIESTE. Additionally, there’s anticipation of an Italian strike on November 17th.
NEU ( North Europe): we can expect strong winds that might affect some ports. we have no confirmation of which ports will be affected.
Port Status
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(*) – cargo connections can be impacted considering the delays reported
Landside updates
Central America, Andina and the Caribbean Sea Area
Panama: Currently having strikes and protests, delivery at Panama has been operating with some limitations due to roadblocks.
Guatemala: Situation in Guatemala has recovered from the main protests, operations are becoming smooth eventhough there are some isolated roadblocks.
Air updates
Central America, Andina and the Caribbean Sea Area
Capacity remains balanced for exports from Colombia and Central America.
Due to current political situation in Panama, local transportation is limited, air cargo is foreseen.
West Coast South America
Lack of capacity on the exports due to fruit peak season. Imports may face a slight decrease on its capacity due to winter schedule, so far, no problems to find solutions for customers.
Highlights
Creating a sustainable supply chain: Leading the way in Latin America
As Latin American consumers become more environmentally conscious, demand for sustainable and green products has increased. At the same time, international and national environmental regulations are tightening, requiring shippers to not only address consumer demand but also these recent regulations. In response, businesses are rethinking their logistics strategies and embracing sustainability as a core principle to remain competitive in this rapidly evolving market.
Dealing with the Latin American slowdown in consumer electronics
Our experts Marina Arana and Eric Dominguez address these topics and attempt to demystify them.
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.
