Economic Outlook and Growth Projections (2023)

Fitch Ratings' neutral outlook for Latin America in 2023 provided a backdrop for varied growth trajectories, with an overall regional growth prediction of 1.6%. However, this concealed nuanced scenarios within individual countries, urging forwarders to consider these variations for targeted planning.

Demography and Productivity (2023)

The youthful demographic and untapped productivity potential made Latin America attractive. IMF estimates projected the region's growth to outpace advanced economies, presenting freight forwarders with a promising market.

Shipping Considerations (2023)

Geopolitical Conflicts and Ocean Capacity Constraints:

Disruptions in the Red Sea and Suez Canal created a 40% capacity shortfall in key trade lanes. Coupled with container shortages in Asia, this signaled a challenging environment for freight forwarders.

Interplay of Air and Sea Freight:

The combination of sea and air solutions, expedited inland services, and LCL shipping became vital. Proactive engagement with logistics providers was emphasized for risk mitigation.

Ocean to Air Conversions:

Swift implementation of contingency plans was vital, blocking additional air capacity as a proactive measure to address potential shifts in demand.

Market Opportunities and Challenges (2023)