DHL: Poor logistics infrastructure could hold back e-commerce growth in Latin America

By Damian Brett

A new report from DHL and the Panamanian Government suggests that poor logistics infrastructure could hold back the growth of e-commerce in Latin America.

The white paper states that e-commerce is predicted to grow at an annual rate of 22% in Latin America through 2021 and that, between 2016 and 2018, the region was the fastest growing in the world for Uber, Netflix and Air BnB.

“The rapid adoption of these disruptive e-commerce platforms, accelerated by less variety, infrastructure challenges and a perceived lower level of customer service from traditional operators in the segments, suggests that Latin American consumers are particularly responsive to newer digital buying models,” DHL said.

However, while this expected growth presents plenty of opportunities for the transport and logistics sector, there are also numerous challenges.

“Inconsistency in the ease and speed of customs clearance, poor GPS coverage and difficulties with congestion and sub-optimal infrastructure for last-mile delivery, and the complexity of reverse logistics processes for returns are all potential brakes on growth,” DHL said.

The white paper identified five key elements that comprise a successful regional logistics hub to support cross-border e-commerce: free trade zone capabilities, efficient port and airport infrastructure, business-friendly trade and customs regulations (for example, for cross-border returns), specific e-commerce logistics knowledge and inter-industry cooperation, with merchants, technology and logistics providers working in sync.

 

Share this story

Related Topics

Latest americas news

Emirates SkyCargo launches Guadalajara freighter service

By Rachelle Harry

Emirates SkyCargo has launched a new service to Guadalajara in Mexico – its second cargo destination in Mexico and 15th…

Read More

Share this story

AerSale swoops on 24 B757s as it eyes cargo conversions

By Damian Brett

Lessor and MRO firm AerSale has entered into a purchase agreement to acquire 24 Boeing 757-200 passenger aircraft that it…

Read More

Share this story

Amazon Air expands freighter operations during summer

By Damian Brett

Amazon Air expanded its daily flight schedule by 27% over the summer according to a report issued by the Chaddick…

Read More

Share this story