The freight and logistics market in Chile comprises of several modes of transportation along with distribution and warehousing services. The logistics industry in the country is largely driven by the rising demand for commodities, the boost in global trade. and the need for effective supply chain solutions. As per a report by Mordor Intelligence, the size of the Chilean Freight and Logistics Market is projected to become approximately 20.13 billion USD in 2024, with expectations to reach 27.92 billion USD by 2030. This represents a Compound Annual Growth Rate of 5.61% during the period from 2024 to 2030.
Factors leading to the growth of the freight and logistics market in Chile
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Strategic geographic location
Chile’s strategic geographic location is crucial in establishing the country as a key gateway for trade between Europe, Asia, and South and Central America. This advantageous positioning enables seamless connectivity through multiple transportation modes, including air, sea, and land routes thereby giving a boost to the freight and logistics market in Chile. The accessibility and connectivity facilitated by Chile’s location contribute significantly to the growth and development of the freight and logistics market. Moreover, the Chilean government approved a substantial investment plan totaling USD 1.9 billion for the Chilean State Railways (EFE) between 2020 and 2022. This has greatly helped the domestic freight movement within the country.
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Investments by multinationals
In March 2023, Maersk expanded its presence in Latin America by inaugurating three new warehouse locations in Santiago, Chile. These new facilities collectively cover an area exceeding 195,000 square meters along the West Coast. The Buenaventura facility, situated in Quilicura and spanning 24,900 square meters, strategically positions Maersk in the northern region with convenient access to highways and the airport. Additionally, the La Vara (10,500 square meters) and San Ignacio (6,520 square meters) facilities in San Bernardo are located near major retailers’ distribution centers, enhancing client accessibility and operational flexibility. These newly established sites prioritize sustainability by incorporating environmentally friendly features such as rail integration, lithium battery-powered forklifts, and LED lighting.
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Thriving air cargo sector
Amid the Chilean government’s initiatives to promote sustainable aviation fuels (SAF), major players in the aviation sector such as LATAM Cargo Chile and UPS have embraced SAF for their cargo deliveries. This shift toward sustainable practices reflects a broader trend toward environmental responsibility within the air cargo segment. Additionally, the sector is experiencing growth, evident from significant expansions and additions to the fleet. This expansion demonstrates the airline’s commitment to meeting growing demand and enhancing logistics capabilities. The adoption of sustainable aviation fuels and the expansion of air cargo operations reflect ongoing efforts within the Chilean freight and logistics market to align with sustainability goals while meeting increasing demands for transportation and logistics services.
Government initiatives to bolster the transportation and logistics sector in Chile
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Effort to mitigate fuel price hike
Due to its limited domestic oil production, countries in South America, including Chile, are highly sensitive to fluctuations in global oil prices. Chile’s crude oil imports declined from 164,159 barrels per day in December 2021 to 145,547 barrels per day in December 2022. Following a sharp increase in oil prices driven by Russia’s invasion of Ukraine, the Chilean government proposed doubling the size of a fund aimed at mitigating fuel price spikes, allocating USD 1.5 billion for this purpose. Despite economic challenges and rising inflation, the Chilean government has committed to expanding social programs while maintaining fiscal discipline.
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Commitment to sustainability
The Ministry of Energy has established interoperability standards for electric vehicle (EV) charging infrastructure, facilitating the adoption and integration of EV technology across the country. Additionally, the designation of hydrogen as an official fuel source underscores Chile’s commitment to exploring alternative and renewable energy solutions.
Chile has set ambitious targets for EV sales, aiming for 100% adoption of zero-emission technologies for light- and medium-duty vehicles, urban buses, and large machinery by 2035. These targets reflect the country’s broader efforts to reduce greenhouse gas emissions, improve air quality, and promote sustainable transportation practices. The implementation of Law 21305-2021 and the push toward EV adoption signal Chile’s commitment to advancing energy efficiency and sustainability in the freight and logistics sectors.
Key players in the Chilean freight and logistics industry
- SAAM S.A.: SAAM S.A. is a leading provider of port operations across multiple Latin American countries, including Chile. The company offers diversified services such as port terminals, towage, and logistics, making significant contributions to the maritime logistics sector.
- LATAM Cargo Chile: LATAM Cargo Chile is a major player in air cargo services, maintaining an extensive global network connecting Chile to key markets. The airline’s cargo division specializes in transporting perishable goods, electronics, and industrial equipment, playing a crucial role in international trade.
- Tur-Bus Cargo: Specializing in road transportation, Tur-Bus Cargo is a prominent player in Chile’s cargo and logistics industry. The company offers comprehensive services, including door-to-door deliveries and tailored logistics solutions for various sectors.
How small and mid sized freight forwarding companies in Chile can increase their profitability
These top multinational players have an ever-tightening grip on the freight and logistics market in Chile and every year they keep acquiring a large market year. Thanks to their international presence they bag the biggest contracts and obtain the best rates from the carriers. The small and mid-sized logistics companies in Chile on the other hand are not in a position to bid for the highest contracts and often find it hard to get lucrative projects or reliable international partners.
How joining the best freight forwarders networks can help forwarders in Chile to get new projects
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Become the only representative of your city
Globalia members serve as exclusive representatives of the port or city in which they operate. Simply put, Globalia limits its membership to just one independent freight forwarder in each of the 472 main ports and airports worldwide. These members function as integral components, essentially operating as branch offices of the Globalia Logistics Network within their territory.
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Receive sales leads from over 215 partners
All Globalia members are required to contribute a share of their shipments to fellow members, facilitating the exchange of new projects and sales leads throughout the entire network. Despite this obligation, members retain the flexibility to continue working with their existing logistics partners outside of the network.
Moreover, every year Globalia organizes an in-person meeting of freight forwarders where members sit face-to-face with their network partners to hash out the details of future collaborative projects. Globalia’s 5th Annual Meeting held in Bali, Indonesia, from 17th to 19th April 2024 allowed forwarders to come together under one roof for 3 days of uninterrupted networking.
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Become a digital freight forwarder
Globalia empowers its members to function as digital freight forwarders through a suite of free online tools. It is the first logistics network to launch a member-exclusive TMS- FreightViewer. Globalia’s Freight Viewer offers a digital infrastructure enabling members to generate quotes within seconds. In essence, this program positions network agents to stay one step ahead of their competitors.