Maersk Market Update Latin America December 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.

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.

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.

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.

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.

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

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

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

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.