Digital forwarders and investors are eyeing an underserved Latin American market with a combination of service models that have found success in other markets and local expertise that is difficult to replicate for outsiders.
Although trade between the US and Latin America has been spared the severe disruptions seen on the US West Coast, sources say PortMiami has seen vessel unloading times spike because of ships arriving one to two days late.
The impact of the COVID-19 pandemic on demand in the United States and the Caribbean and Central America caused two-way trade between the regions to contract in the first nine months of 2020.
The government of Panama has approved reduced toll rates for container ships transiting the Panama Canal, mindful of the need to stay competitive with the Suez Canal and with carriers ready to see fuel costs jump due to the IMO 2020 low-sulfur mandate.
The Panama Canal on Friday increased from 44 feet to 45 feet the permitted depth of vessels passing through the critical waterway as canal authorities have begun to walk back depth limits introduced over the last seven months due to a lack of rainfall.
The shallow drafts pushed up spot rates on cargo from Asia, although it’s unclear how much was due to reduced loading capacity and how much was used by carrier representatives as simply justification to seek higher rates.
Container carriers have been altering stowage plans for neo-Panamax ships to mitigate the current draft limits, according to the Panama Canal Authority.