Maersk Market Update Latin America August 2023

22 August 2023

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.

Supply chain integration is often heard in today's world and its interconnected business. It is on the center stage to discuss how a unified supply chain can optimize the flow of information, resources, service, etc. With a globalized economy and the constant evolution of technology, integrating the supply chain has never been more critical. In this topic of the month, we bring you information on how to surpass disruptions, market volatility, and customer expectations with supply chain integration, exploring its importance, benefits, and how you can apply it to your business.

Topic of the Month: Supply Chain Integration

What is supply chain integration?

Bringing together different stakeholders involved in the same process at a single system is supply chain integration, and it brings greater efficiency in terms of cost saving and productivity. You can create a cohesive and efficient system by aligning different supply chain aspects, from raw materials to finances and even customer satisfaction.

A supply chain integration requires critical coordination and alignment between all stakeholders to ensure they are all working toward the same objective of efficiently handling their supply chain.

The importance of an integrated supply chain

Having an integrated supply chain benefits efficiency and communication, but that doesn’t mean it has its complexity. It is still essential to boost your supply chain and gather the information you need in the time you need to leverage your business productivity. Even though picking all the information and aligning stakeholders might be a little complicated, here are some important facts about why integration is essential nowadays.

Reduce waste, not only on materials but also on time.
Increase globalization by being connected and synchronized with other third-party operations.
Risk mitigation by sharing data to anticipate disruptions and ensure continuity and resilience of every step of your supply chain.
Improve customer experience and satisfaction.
Raising the importance of sustainability, consumers are now seeking more sustainable products. You can find more about how sustainable logistics benefits your business here.

Benefits of embracing supply chain integration

Partnering up comes with many benefits, from improving capabilities, being aligned, and even expanding your business. Here are some benefits of Supply chain integration:

Partnering: having a robust collaboration between different parties that share the same objective and that at some point contribute to your supply chain. A survey made by Oracle states that 82% of the companies improve their delivery timelines by cooperating with their stakeholders. Therefore, their customer satisfaction grew by 35% because customers had a better flow and service of their cargo. A study about Supply Chain Complexity by Kober in 2020 states that one of every four businesses rely on manual processes for core warehousing operation. There are still many businesses to enter the technological world to help them be more effective and dedicate time to planning rather than operating manually, a change that is being made at a fast pace. Gartner assured that for this year, blockchain will support global movement and tracking of $ 2 trillion of goods and services for each year.
Increase profit margins and revenues: reducing disruptions brings more flow and higher profit margins. The supply chain integration helps you foresee any interruption, plan different scenarios to be more effective, and use other management solutions to be agile.

Customer demand: by integrating a supply chain, you can meet and even exceed your customers’ demand. It helps you to have the proper visibility and insights into the market and consumer needs.
More flexibility helps your business and other supply chain stages be prepared to respond to fluctuations in demand and disruptions. By setting up adaptable processes, real-time visualization, and agile decision making you can leverage your business resilience and also contribute to every link in the supply chain.

Find what is truly integrated logistics and an example of what does it mean for an exporter or an importer here.

Challenges

All new integration, before being effective, represents a challenge not only for the one that is implementing it but also to all its stakeholders. All the supply chains must have the engagement to contribute valuable information that, at some point, will be helpful for the different teams.

Another challenge could be that you have access to the information. Still, the stakeholders or your business need to be more flexible with previous scenarios mapped to make changes with the rapidly evolving political and economic or weather conditions.

Once you have decided on partnering up towards an integrated supply chain, you have to get the most out of it and use the information and visibility you can get to leverage your business. Meanwhile, you can dedicate your time to more strategic and planning activities.

The right partner

It is all about who you surround yourself and your business with. The right partner should give you ease, flexibility, and visibility. Someone who knows your business and works by your side to help you with your logistics from end to end and as we mentioned, a partner that can integrate your supply chain.

That all-in-one partner will give you the perspective of the business on real time but also helps you anticipate seasonality, gives you market trends, recommends solutions, comes up with new strategies to evolve, improve your tracking and reporting, helps you perform better with your customers and even support your business on expanding new markets. Here is how a unified Maersk can help you grow.

Ocean updates

Trade lane	Comments	Demand Trend
Trade lane West Coast South America Exports	Comments Reefer fruit slack season coming, and the phenomenon, "El Niño" is already impacting some commodities. Copper prices are under pressure from given concerns about the effect of a global economic slowdown on base metals.	Demand Trend Stable
Trade lane West Coast South America Imports	Comments Uncertainty on market seasonality out of Asia as changes in supply behavior and consumer patterns could affect inventories.	Demand Trend Stable
Trade lane East Coast South America to Asia	Comments Japan has temporarily suspended imports of chicken from Brazil - Santa Catarina and Espirito Santos states. Despite this embargo, no commercial impact since customers are moving the cargo out of ES and SC to other destinations and considering Plants from other states to move the poultry to Japan. In Argentina, all exports remain blocked, waiting 30 days without any new cases. The cotton season starts with a good trend. It is expected to have a record crop for 2023/2024). The increase in area justifies this value, productivity gain due to improved technologies, favorable climate, and low occurrence of pests. China's quota was opened with tax incentives and Brazil represents 30% of this quota.	Demand Trend Stable

Main port status

Regarding Latin American ports, waiting times are generally stable. However, there are a few exceptions. Manzanillo-MX is experiencing waiting times only for XL-sized vessels, and Chilean ports are being closely monitored due to the possibility of 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, and the maximum authorized draft of 12.04 m (39.5 feet) TFW will remain in effect in the Panamax locks until further notice. (NON-BOOKED: NEO - DAYS 9 NB/ 13 DAYS SB / SUPER- 15 DAYS NB / 14 DAYS SB)

Thessaloniki Terminal, Greece: This terminal is congested, with a waiting time of 3 days. Operations can be suspended if the temperature exceeds 40 degrees.

Port Chalmers, New Zealand: While the waiting time is nil, there is an ongoing discussion about extending the labor model and increasing capacity due to labor shifts. This might be an area to watch for changes in the coming weeks.

Mersin, Turkey: The waiting time is 5-7 days due to congestion, which could indicate critical conditions at this port.

Constanta, Romania: DPW CND terminal has a waiting time of 2 days.

Varna, Bulgaria: The Varna channel will be closed for navigation for a significant period (from 01.08 to 31.08.2023), which might affect shipping routes.

Ningbo Beilun Container Terminal Phase 4, China: The average waiting time is 3-3.5 days, indicating some congestion.

Guangzhou Ocean Gate Terminal, China: While the average waiting time is relatively short (0.5 day), the alert level is high, with an empty yard at 90%, potentially leading to operational challenges.

Koper, Slovenia: The terminal is impacted by the Houson incident, and the productivity will not be optimal until the 4th crane is repaired. Additionally, a national holiday might bring uncertainty regarding truck restrictions.

Genoa PSA, Italy: The terminal is experiencing congestion due to reduced gang availability during the vacation season. Berthing line-up congestion and waiting times are expected to be experienced.

These ports may require closer monitoring and attention due to the mentioned factors. However, it's important to note that the criticality of a port can change based on various factors such as weather conditions, labor issues, ongoing projects, and other unforeseen events.

Port Status

	Less than 1 Day	1-3 Days	4 - 7 days	More than 7 days
Latin America	Less than 1 Day Santos 01, Santos BTP, Salvador, Buenos Aires, Montevideo, Manaus, Suape, Pecem, Rio Janeiro, Imbituba, Sepetiba, Itajai, Navegantes, Rio Grande, Zarate, Rosario, Mar del plata, Bahia Blanca, S Antonio Este, P Madryn, P Deseado, Ushuaia, Vitoria, Buenaventura, Santa Marta, Turbo, Moin, La Guaira, Puerto Cabello, Lazaro Cardenas, Veracruz, Altamira, Progreso, ""Guayaquil/ Contecon"", ""Guayaquil/ TPG"", Puerto Bolivar, Callao/ APMT, Callao/ DPW, Pisco, Arica, Iquique - ITI, Mejillones-PAG, Antofagasta-ATI, Valparaiso-TPS, San Vicente - SVTI, San Antonio - STI	1-3 Days Manzanillo-MX	4 - 7 days	More than 7 days
Rest of World	Less than 1 Day Halifax, Jacksonville, Long Beach, Los Angeles, Miami - POMTOC, Montreal, Newark APMT, Newark PNCT, Norfolk, North Charleston, Philadelphia, Port Everglades, Prince Rupert, Seattle, Tampa, Wilmington, Santos 01, Santos BTP, Paranagua, Itapoá, Salvador, Buenos Aires, Manaus, Suape, Pecem, Rio Janeiro, Imbituba, Sepetiba, Itajai, Navegantes, Rio Grande, Zarate, Rosario, Mar del plata, Bahia Blanca, S Antonio Este, P Madryn, P Deseado, Ushuaia, Vitoria, Buenaventura, Santa Marta, Turbo, Moin, La Guaira, Puerto Cabello, Lazaro Cardenas, Veracruz, Altamira, Progreso, Guayaquil/Contecon, Guayaquil/TPG, Puerto Bolivar, Callao/APMT, Callao/DPW, Pisco, Arica, Iquique - ITI, Mejillones-PAG, Antofagasta-ATI, Valparaiso-TPS, San Antonio - STI, San Vicente - SVTI, PSA (SGSIN), SINGAPORE, PORT OF TANJUNG PELEPAS, AUSTRALIA, Tauranga, Auckland, Napier, Lyttelton, Port Chalmers, Timaru, Nelson, Busan New Port Terminal (KRBUSPN), Qingdao Qianwan Container (CNTSTQQ), Shanghai Yangshan Guandong Terminal (CNSGHY3), Shanghai Shang Dong Container Terminal (CNSGHY4), Shanghai East Container Terminal (CNSGHCT), Ningbo Beilun Container Terminal Phase 4 (CNNPOJ4), Xiamen Songyu Terminal (CNXIMSY), Yantian Container Terminal (CNYATCT), Hongkong Modern Terminal (HKHKGMO).	1-3 Days Baltimore, Charleston, Freeport, Houston, Mobile, New Orleans, Savannah, Vancouver, Montevideo, Manzanillo-MX, PATRICK (BNE), PATRICK (FRE), PATRICK (MEL), PATRICK (SYD), DPW (MEL), DPW (SYD), DPW (BNE), DPW (FRE), MEL VICT, ADL, AMBARLI MARPORT, AMBARLI KUMPORT, POTI, Constanta, Romania, Ningbo Beilun Phase 4, CN	4 - 7 days MERSIN	More than 7 days

(*) - cargo connections can be impacted considering the delays reported.

Air updates

Central America, Andina and the Caribbean Sea Area

Capacity is stable and remains sufficient due to increased passenger demand. Freighter routings to Central America have been reduced for August, limiting options to SJO, PTY, MGA & TGU mainly due to low volumes. For the remaining countries, there is flat growth, and exports are mainly focused on perishables, while dry cargo volumes are conservative awaiting an increase during the Q3 peak season.

West Coast South America

Sufficient capacity for current volume levels; belly capacity continued to improve as passenger travel demand remains high, and Fuel surcharge is still going up. Global oil inventories will decline over the next five quarters; jet fuel prices are expected to remain high and the Load Factor Development decreased from 39% to 33% in LAM. Capacity has increased in PAX, and some PAX flight in the area has been resuming since before the pandemic season. In Chile carriers are preparing for the next Cherry Season.

Experts provide insights into the benefits of cold chain logistics

Highlights

Building cold chain resilience to strengthen Latin American trade

Latin America is well-known for its thriving cold chain export business that encompasses a wide range of products, including meats, fruits and vegetables, flowers, frozen dairy and seafood/fish, and even pharmaceuticals. Ensuring the quality and integrity of these perishable goods throughout their journey, however, poses significant challenges. Maintaining an unbroken cold chain from the point of origin to the ultimate destination is the need of the hour.

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.

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