condition of the logistical infrastructure in south ... · peru 2 services 19,000 teu central...

Condition of the logistical infrastructure in South & Central America Rasmus Jensen and Hudson da Silva Kuehne + Nagel

Content

Container seafreight overview p. 03 Airfreight overview p. 07

Customs and documentation p. 12

Domestic transportation p. 20

Conclusion p. 24

Container sea-freight overview

Situation of container seafreight South & Central America

Comprehensive port and service coverage to facilitate trade and business development

Weather, congestion, strikes and productivity can be a challenge in South & Central American container sea ports

Condition of the logistical infrastructure in South & Central America 4

Container seafreight service overview 16 main services + 70,000 TEU capacity connecting North Europe directly

Brazil 4 services 20,000 TEU

Chile 2 services 19,000 TEU

Argentina

3 services 18,000 TEU

Peru 2 services 19,000 TEU

Central America 5 services 27,000 TEU

Caribbean 5 services 19,000 TEU

Uruguay

3 services 18,000 TEU

Condition of the logistical infrastructure in South & Central America Source: SeaExplorer 5

Mexico 4 services 21,000 TEU

Ecuador 1 service 2,500 TEU

Colombia 4 services 22,500 TEU

Container sea ports overview 65 main ports + multiple terminals with varying infrastructure

Brazil 14 ports / Santos

Argentina

6 ports / Buenos Aires

Colombia

4 ports / Buenaventura

Central America

15 ports / Panama

Uruguay

1 port / Montevideo


Mexico

5 ports Caribbean

8 ports / Cartagena

Chile

9 ports / Valparaiso

Peru

2 ports / Callao

Ecuador

1 port / Guayaquil

Airfreight overview

Situation of airfreight

8

South & Central America

Potentially the biggest challenge for airfreight in the region is lack of capacity and the imbalance between the northbound and southbound trades.

Condition of the logistical infrastructure in South & Central America

Majority of the countries do allow max 3-5% difference between actual weight and hawb weight.

Airfreight service overview North Europe market: +520,000 tons shipped in 2017


Brazil 92,502 tons

Chile

28,850 tons

Argentina

22,915 tons

Peru

73,566 tons

Central America

10,760 tons

Uruguay

3,439 tons

9

Mexico

79,533 tons

Ecuador

148,786 tons

Colombia

55,640 tons

Main cargo airports overview 37 main airports with connections for North Europe

Brazil 10 airports / Sao Paulo

Argentina

3 airports / Buenos Aires

Colombia

1 airport / Bogota

Central America

7 airports / Panama

Uruguay

1 airport / Montevideo


Mexico

5 airports / Mexico City Caribbean

7 airports / Havana

Chile

1 airport / Santiago

Peru

1 airport / Lima

Ecuador

1 airport / Quito

International gateways Miami and Panama

Condition of the logistical infrastructure in South & Central America 11 11

Miami

AMS instructions must be followed (delay and costs)

Accurate commodity description on HAWB

Customs and border control requirement to enter Harmonized tariff schedule # on HAWB (reject for export).

Panama

Easy to expedite customs procedures

Free trade zones

7 key Airlines covering all major Latin America cities

Road connection through Central America and Mexico

Customs and documentation

Customs & Documentation

Discrepancies can generate fines and extra costs (and time investment), therefore it is important to understand the local procedures and regulations

Customs and documentation might seem complicated but it is possible to navigate



Customs and documentation are generally more time consuming and more expensive compared to North European countries

Customs and documents Brazil imports


Glossary

CNPJ: National registration number of legal entities

NCM: Harmonized tariff schedule

INFRAERO: Government owned airports

SISCOMEX: Integrated foreign trade system

SISCARGA: Electronic manifest system

RADAR: Electronic power of attorney in custom systems

Check List

CNPJ: Required in the B/L (consignee information)

NCM: Required in the B/L (goods description)

SISCOMEX: DDP (Delivery duty paid) not allowed in Brazil

SISCARGA: 72 hours prior vessel arrival (penalties and delays)

RADAR: Approval up to 60 days (renewed yearly)

Commercial invoice (original signed)

Packing list (original)

BL or AWB (issued abroad)

Import License (issues in Brazil)

Certificate of origin

Declaration of import (issued in Brazil)

Certain group of products require special approval from government

Documents

Customs process flow Brazil imports


Monday to Friday 8:00 AM to 6:00 PM (Saturday 8:00 AM to 1:30 PM)

Arrival in Brazil No further

check

Cargo cleared/Ready for Delivery

1 working day

Import declaration issuance through customs system

Documentation check


3 working days

Customs system randomly leads import declaration to one of 3 channels

Documentation check & Physical check


7 working days

Customs and documents Colombia, Peru and Chile


Colombia

Commercial invoice - Quantity and costs - INCOTERMS - Good description

Packing list

Power of attorney

Tax registration

Custom entity certificate

Usage of Cartagena (instead of Buenaventura) speeds on delivery

Peru

Commercial invoice - Original (stamped and signed) - English (Spanish to speed up process)

Goods certification (institute in Peru) - Food, footwear, Chemicals

Industrially manufactured goods must be labeled with: - Product name - Country of origin - Net weight and volume - Peruvian ( RUC) address of importer - Dangerous raw material (if applicable) - Medical treatment (if applicable)

Original documents to release cargo

Documents 7 days prior cargo arrival

Custom brokerage NOT allowed by freight forwarders

Correct and on time documentation allows for directly cargo pick up (no storage)

No import tariff on EU produced products

Usage of Iquique reduce lead time, increase connections and provides free zone operation

Chile

Domestic transportation

Domestic transport

Quality of roads and inland distances influence domestic transport. Road security is another important factor to consider

Domestic container transport is generally dominated by trucks and significantly different across the countries



Domestic transportation Colombia, Peru and Argentina


Colombia

70% of cargo is transported by truck

25usd billion in road infrastructure (2021)

75usd billion in transportation infrastructure

Cut lead time by 30-50%

Reduce transport cost between cities and mountains

Peru

National (15%), regional (15%) and local (70%) roads

75% of national roads are paved

10% of regional roads are paved

2% of local roads are paved

40% of roads administered by private companies

90% of cargo moving by road

40.000 km of national highways

195.000 km of national provincial roads (40% in bad condition + safety issues)

Route 9: Buenos Aires to Cordoba

Route 40: Andes range

Route 3: Buenos Aires to Ushuaia

35.000 km of railways (quality and speed slow)

Argentina

Conclusion

Conclusion Logistics in South & Central America

Comprehensive port infrastructure

Trading can be “difficult”

Documentation is strict, with increased bureaucracy and regulations – subject to fines

Inland transport varies in quality and security

Understand the local regulations

Have a knowledgeable and experienced partner


Thank you It has been a pleasure