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Latin America Contract Logistics Market Size (2024 - 2029)

The Latin American contract logistics market is poised for growth, driven by the expansion of international trade in perishable goods and advancements in transportation and storage technologies. The demand for efficient supply chains has surged, particularly due to the rise in online shopping during the COVID-19 pandemic, necessitating improvements in order processing and delivery. Government support for infrastructure development and the increasing use of tech-driven logistics services and IoT-enabled devices are further propelling the market. However, challenges such as inadequate infrastructure and high logistics costs may impede the market's expansion.

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Market Size of Latin America Contract Logistics Industry

CAGR
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 3.50 %
Market Concentration High

Major Players

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*Disclaimer: Major Players sorted in no particular order

Latin America Contact Logistics Market Analysis

The Latin American contract logistics market is expected to exhibit a growth rate of more than 3.5% during the forecast period. During the COVID-19 pandemic, due to lockdowns, there has been an increase in demand for online shopping in several areas in Latin America, which requires the manufacturing, food and beverage, and logistics sectors to streamline their supply chains, providing the consumers with an increase in speed and accuracy of order processing and delivery.

The rapid growth of international trade of perishable goods, technological progress in transportation and storage facilities, and infrastructure development support by the government are the major driving factors for the growth of the Latin American contract logistics market. The increased implementation of tech-driven logistics services and IoT-enabled connected devices are accelerating the growth of the market. However, lack of infrastructure and high cost of logistics services hinder the market growth.

Latin America Contact Logistics Industry Segmentation

Contract logistics refers to the outsourcing of resource management tasks to a third-party company. Contract logistics companies handle activities such as designing and planning supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory, and even providing certain aspects of customer service.

The report provides a complete background analysis of the Latin American contract logistics market, which includes an assessment of the economy, emerging trends by segments and regional markets, significant changes in market dynamics, market overview, and company profiles. The report also covers the impact of COVID - 19 on the market.

The Latin American contract logistics market is segmented by type (outsourced and insourced), end user (manufacturing and automotive, consumer goods and retail, hi-tech, healthcare and pharmaceuticals, and other end users), and country (Mexico, Brazil, Colombia, Chile, and Rest of Latin America).

By Type
Insourced
Outsourced
By End User
Industrial Machinery and Automotive
Food and Beverage
Chemicals
Other End Users
By Geography
Mexico
Brazil
Colombia
Chile
Rest of Latin America
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Latin America Contract Logistics Market Size Summary

The Latin American contract logistics market is poised for steady growth, driven by the increasing demand for efficient supply chain solutions across various sectors such as manufacturing, food and beverage, and e-commerce. The COVID-19 pandemic accelerated the shift towards online shopping, necessitating improvements in order processing and delivery systems. Key factors propelling the market include the expansion of international trade in perishable goods, advancements in transportation and storage technologies, and government-supported infrastructure development. Despite challenges like inadequate infrastructure and high logistics costs, the market is benefiting from the adoption of tech-driven logistics services and IoT-enabled devices, which are enhancing operational efficiency and accuracy.

The automotive sector in Latin America, particularly in Mexico and Brazil, plays a significant role in the contract logistics market. Mexico's competitive manufacturing costs and strategic transport links to the United States have positioned it as a major hub for automotive investments, supporting both domestic and international markets. The burgeoning e-commerce sector further drives logistics companies to enhance warehousing and inventory management, aiming for cost-effective, rapid delivery solutions. The market remains fragmented, with numerous domestic and international players like AP Moller, DB Schenker, and DHL Supply Chain competing for market share. Companies are increasingly pursuing acquisitions to strengthen their market position, as evidenced by recent developments such as CEVA Logistics' expansion in Mexico and Brazil.

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Latin America Contract Logistics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Government Regulations and Initiatives

    6. 1.6 Technological Trends

    7. 1.7 Insights into the E-commerce Industry in the Region (Both Domestic and Cross-border)

    8. 1.8 Insights into Contract Logistics in the Context of After-sales/Reverse Logistics

    9. 1.9 Spotlight - Freight Transportation Costs/Freight Rates

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Insourced

      2. 2.1.2 Outsourced

    2. 2.2 By End User

      1. 2.2.1 Industrial Machinery and Automotive

      2. 2.2.2 Food and Beverage

      3. 2.2.3 Chemicals

      4. 2.2.4 Other End Users

    3. 2.3 By Geography

      1. 2.3.1 Mexico

      2. 2.3.2 Brazil

      3. 2.3.3 Colombia

      4. 2.3.4 Chile

      5. 2.3.5 Rest of Latin America

Latin America Contract Logistics Market Size FAQs

The Latin America Contract Logistics Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)

DB Schenker, DHL Supply Chain, CH Robinson, FedEx and GEODIS are the major companies operating in the Latin America Contract Logistics Market.

Latin America Contact Logistics Market Report Snapshots

Latin America Contact Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)