Subscribe to our free, weekly email newsletter!

ICAT has a few tips for shippers doing business in Latin America

Logistics Management explores some of the opportunities and challenges currently being faced in rapidly emerging market.
By Patrick Burnson, Executive Editor
July 08, 2013

Editor’s note: With Latin America poised for explosive growth over the next decade, many U.S. shippers are evaluating the risk/reward scenario for enterprise penetration. In an exclusive interview with Jaime Cabrera, vice president, Latin America for ICAT Logistics, Inc. in Miami, Logistics Management explores some of the opportunities and challenges currently being faced in rapidly emerging market. Cabrera has over 20 years of expertise and experience in international export air freight, ocean freight, customs brokerage and international business development. Before joining the ICAT team, he began his freight career in 1990 and has held various positions at various companies that had an international focus, including LAN Chile airlines and two major freight forwarders. Cabrera also played a major role in building a gateway into Latin American and he hosted the first Latin America (LATAM) conference that brought together over 15 different top LATAM countries including Argentina, Brazil, Costa Rica, Chile, Dominican Republic, Mexico, Peru and Venezuela.

Logistics Management: Can you briefly outline which Latin American “hot spots” shippers should now be targeting?

Jaime Cabrera: Beside Brazil, Peru and Ecuador are becoming key players in the region, with both nations surpassing many of its regional neighbors in growth. Colombia and Panama, too, are growing with the new U.S. trade agreements in effect. Shippers should also track and evaluate progress being made in Argentina, Chile, and Paraguay.

LM: What global forces are at work to help Latin America grow?

Cabrera: Europe struggles to recover from huge deficits, while Latin America continues to forge new trade agreements well beyond its hemisphere. We are seeing a lot more business being done with Asia, for example, and this will only increase as the deadline for the Panama Canal expansion nears.

LM: At the same time, that creates some urgency to improve Latin America’s transport infrastructure, does it not?

Cabrera: Yes, you are quite correct. With much larger ocean cargo vessels being launched into the trade, South American ports will have to invest in all aspects of shoreside operations. We can see that U.S. ports – Miami, for example – are expanding at a very fast rate in anticipation of the same hemispheric trend.

LM: Let’s talk about risk. How will U.S. shippers profit by entering this emerging market without jeopardizing their current supply chains?

Cabrera: One of the major challenges that U.S. shippers face for expansion into the region is that each of the countries in Latin America had unique regulations and government rules. The best markets, such as Brazil, still put big obstacles in high bureaucratic institutions with complex tax structures.

We see tremendous opportunity for shippers sourcing raw materials – minerals and petroleum products – to get into this marketplace first. After they have prevailed over some of the regulatory challenges, other U.S. shippers will be able to evaluate the complexity of the region, and work with forwarders who can enable them to work effectively there.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA