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Latin America Customs Brokerage Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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    Report

  • 150 Pages
  • August 2023
  • Region: Latin America
  • Mordor Intelligence
  • ID: 5332815
The Latin America Customs Brokerage Market size is expected to grow from USD 2.92 billion in 2023 to USD 3.44 billion by 2028, at a CAGR of 3.31% during the forecast period (2023-2028).

Combating the pandemic required countries to expedite the clearance and release of medicines, diagnostics, kits, and equipment. Customs organizations in countries including Peru, Panama, Colombia, and Chile quickly suspended their deadlines and procedures to prevent goods from falling into legal abandonment.

Key Highlights

  • For shippers entering the Latin American market, friction at the border can be striking. The bureaucracy and the outdated clearance practices often result in lengthy customs delays. This has led to rampant corruption, with many customs officials known to ask for bribes to expedite the clearance of goods.
  • The companies operating in the logistics sector across various end users are proactively adopting the latest technologies and software platforms to carry out customs processes like documentation and customs clearance efficiently.
  • The rapid growth in last-mile deliveries and the seamless, fast, and end-to-end deliveries in the logistics market are some of the main drivers for the sudden growth in the number of companies offering specialized customs brokerage services as a part of their portfolios.
  • The growing adoption of IoT-enabled connected devices and the increasing adoption of tech-driven logistics services drive the growth of the Latin American customs brokerage market. In addition, the development of the e-commerce industry and the increase in reverse logistics operations boost the market growth. However, the lack of manufacturers' control of logistics services hinders the market's growth.
  • The COVID-19 pandemic has affected many aspects of international trade in Latin America, including supply chain management, manufacturing, importing, exporting, customs, and logistics. Before the pandemic, the electronic transmission of data prior to the arrival of goods to customs was rare in the region outside of express mail.

Latin America Customs Brokerage Market Trends

Increase in Ocean Freight

Maritime logistics can be considered the backbone of the trade, as it transports around 84% of the volumes traded worldwide and almost 70% of the global trade value. Hence, ports play a significant role in ensuring the wide distribution of goods through supply chains, including those considered essential, such as food and medical supplies.

A significant amount of time is taken by in-country customs and customs brokers to sort goods. As a result, inventory builds up, and customs costs can be excessively high, leaving customers frustrated when materials often take too long to arrive.



Growing demand in retail sector

International e-commerce is helping lead the growth in the retail sector. Global cross-border e-commerce is projected to account for one-fifth of all online retail sales by 2022. Retailers are able to expand to new markets and reach new customers in developing regions like Latin America and Africa.

In Latin America, an increasing number of people have access to the internet due to mobile phones. This is driving the expansion of e-commerce in the region. Though Latin America is a smaller market than North America or Europe, online sales in this region are expected to grow by over 19% in the next five years.

Latin Americans are showing a willingness to shop internationally online. In 2022, nearly 65% of all Latin American consumers purchased from an overseas retailer.



Latin America Customs Brokerage Industry Overview

The market is fragmented, with the presence of many domestic companies. Some countries are open to trade with simple customs laws that are easy to understand and execute. Others use customs as a barrier to controlling trade and sources of revenue. They continually enforce new fees or penalties. The suppliers in the customs brokerage industry in Latin America are observing a high demand due to the exponential growth of industries such as chemicals, pharmaceuticals, FMCG, and packaging.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview (Current Scenario of Customs Brokerage Market in Latin America)
4.2 Government Regulations and Initiatives (Related to Logistics and Logistics Infrastructure Development and Its Impact)
4.3 Technological Trends (Global and Regional-level Insights)Impact of COVID-19 on the Market (Short-term and Long-term Effects on the Market)
4.4 Review of Customs Brokerage Costs as Percentage of Total Logistics Spend
4.5 Overview of Customs Pricing
4.6 Brief on Customs Brokerage-related Software (Key Software Providers and Trends in the Global and Regional Market)
4.7 Impact of COVID-19 on the Market
4.8 Industry Attractiveness - Porter Five Forces
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes
4.8.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION (Market Size by Value)
5.1 Mode of Transport
5.1.1 Ocean
5.1.2 Air
5.1.3 Cross-border Land Transport
5.2 End User
5.2.1 Automotive
5.2.2 Chemicals
5.2.3 FMCG (Fast-moving Consumer Goods - Includes Beauty and Personal Care, Soft Drinks, Home Care, etc.)
5.2.4 Retail (Hypermarkets, Supermarkets, Convenience Stores, and E-commerce Channels)
5.2.5 Fashion and Lifestyle (Apparel and Footwear)
5.2.6 Reefer (Fruits, Vegetables, Pharmaceuticals, Meat, Fish, and Seafood)
5.2.7 Technology (Consumer Electronics, Home Appliances)
5.2.8 Other End Users
5.3 Country
5.3.1 Mexico
5.3.2 Brazil
5.3.3 Chile
5.3.4 Colombia
5.3.5 Panama
5.3.6 Rest of Latin America

6 COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration Overview, Major Players)
6.2 Company Profiles
6.2.1 Grupo Ei
6.2.2 Livingston International
6.2.3 Farrow
6.2.4 Rota Brasil
6.2.5 Ibercondor Forwarding SA de CV
6.2.6 Elemar
6.2.7 Grupo Coex
6.2.8 Servicios de Aduanas Jiménez
6.2.9 Aduana Cordero
6.2.10 Deutsche Post DHL Group
6.2.11 DSV Panalpina AS
6.2.12 Expeditors International*
6.3 Other Companies (Key Information/Overview - List of Key Small to Medium-scale Players in Each Country)

7 FUTURE OF THE MARKET

8 APPENDIX
8.1 Key Border Ports in the Region (Country-level)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Grupo Ei
  • Livingston International
  • Farrow
  • Rota Brasil
  • Ibercondor Forwarding SA de CV
  • Elemar
  • Grupo Coex
  • Servicios de Aduanas Jiménez
  • Aduana Cordero
  • Deutsche Post DHL Group
  • DSV Panalpina AS
  • Expeditors International*

Methodology

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