4 things to know before shipping to Latam
Created on November 9, 2022 | Last updated on June 26, 2023 at 05:04 pm
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While there are challenges shared by most freight forwarders, the problems faced by Latam freight forwarders are a reflection of the political and socioeconomic differences specific to the region. Therefore, we have prepared this article with 4 things to know before shipping to Latam that can help you with the Latin America challenges.
When it comes to Latin America, a freight forwarder must keep in mind that it is a fragmented region and each country has specific regulations and procedures…
The biggest challenges faced by freight forwarders in Latin America:
According to a publication by the Inter-American Development Bank, the weak logistics performance of Latin American countries today is a major barrier to deeper international integration in the region.
Despite advances in the commercial integration of Latin America, there is still a gap in comparison to Asia and Europe.
Therefore, before sending cargo to any of the countries in Latin America there are some things that should be considered:
- Different regulations for each country
Because Latin America is a big region each country has its rules and regulations, but many forwarders don’t know about that and that ends up making their job a lot harder. For that reason, before sending cargo to Latin America talk to your forwarder partner to check the regulations of the country that it’s going to receive the cargo, this way you will avoid misunderstandings and costs.
Shipping to Latin America involves a lot of bureaucracy because when the cargo arrives at the border the authority inspects has to make sure that the cargo has followed the necessary precautions, and each country and each cargo has a specification. As long as the documents, that always need to be assigned with a blue pen.
- Insufficient infrastructure
Most of Latin America relies on poorly built roads, insufficient energy distribution systems, outdated ports, and a limited number of airports for cargo transportation. The lack of adequate infrastructure makes it difficult to implement efficient freight forwarding processes, which in turn can hinder the strategic development of the region.
- Cargo delay
Although delays are an inevitable part of any logistics operation, regardless of the region, delivery time in Latin American countries is significantly impacted by inadequate infrastructure and high bureaucracy in customs. This ultimately affects the cargo movement, until further notice.
Here’s what you need to know before shipping to Latin America
Even though forwarders that wish to ease their entry into the region should take a careful and well-planned approach, the challenges of the region should by no means stop companies from pursuing opportunities in this market.
Despite the problems faced by Latam freight forwarders, impacting logistics processes and requiring some market insight, many freight companies consider Latin America a very valuable partner in the global supply chain.
Many companies have expanded their operations in the Latin American market in recent years, mainly because, although challenges exist, business opportunities remain and grow each year.
Therefore, before you send shipments to any of the Latin American countries, here are 4 things to know before shipping to Latam that you should remember:
- Discuss with your partner the characteristics and regulations of the country in question;
- Research the customs issues and trade agreements that the region may have;
- Understand what requirements are necessary to transport that cargo in the required country;
- Research paperwork specifications.
The key to unlocking the region’s potential is to be aware of customs issues and customer support issues so that they are handled quickly and efficiently.
Find the right forwarder partner in Latam
The problems faced by Latam freight forwarders are indeed obstacles to international transportation and logistics in the region. However, the outlook for the region is favorable and if you keep these 4 things to know before shipping to Latam in mind, you can certainly make a successful partnership.
Make sure you choose the right forwarder partner for your business that has the necessary experience in the region. If you need freight partners from Latin America, search for freight forwarders on Parnity.
Among the 450 freight forwarders worldwide that are part of Parnity, in our network we have more than 75 members from Latin America with complete profiles so you can decide which one will best meet the demands of your forwarding business.