The freight and logistics sector in Chile includes various modes of transportation, along with distribution and warehousing services. The industry’s growth is primarily driven by increasing demand for commodities, a boost in global trade, and the need for effective supply chain solutions. According to a report by Mordor Intelligence, the size of the Chilean freight and logistics market is projected to be approximately 20.13 billion USD in 2024, with expectations to reach 27.92 billion USD by 2030. This represents a compound annual growth rate (CAGR) of 5.61% from 2024 to 2030.
A bit about the freight and logistics sector in Chile: Factors leading to the growth of the freight and logistics market in Chile
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Strategic location
Chile’s prime geographic location is essential 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 boosting 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. Furthermore, the Chilean government approved a substantial investment plan totaling USD 1.9 billion for the Chilean State Railways (EFE) between 2020 and 2022, which has greatly enhanced domestic freight movement within the country.
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Booming air freight industry
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 mirrors a broader trend toward environmental responsibility within the air cargo segment. Additionally, the sector is experiencing growth, evident from significant fleet expansions and additions. These expansions demonstrate the airlines’ 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 addressing the increasing demand for transportation and logistics services.
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Investments by multinationals
In March 2023, Maersk significantly increased its footprint in Latin America by opening three new warehouse locations in Santiago, Chile. Together, these facilities span over 195,000 square meters along the West Coast. The Buenaventura site, located in Quilicura and covering 24,900 square meters, offers Maersk a strategic position in the northern region with easy access to highways and the airport. The La Vara (10,500 square meters) and San Ignacio (6,520 square meters) sites in San Bernardo are strategically placed near key retailers’ distribution hubs, improving accessibility for clients and operational efficiency. These new warehouses emphasize sustainability, featuring green initiatives such as rail integration, lithium battery-powered forklifts, and LED lighting.
Key Players in Chile’s Freight and Logistics Industry
SAAM S.A.: SAAM S.A. stands out as a prominent provider of port operations throughout Latin America, including Chile. The company delivers a range of services, such as port terminals, towage, and logistics, and plays a vital role in the maritime logistics sector.
LATAM Cargo Chile: LATAM Cargo Chile is a significant force in air cargo services, operating a vast global network that connects Chile to major markets. The airline’s cargo division excels in the transport of perishable goods, electronics, and industrial equipment, making it a key player in international trade.
Tur-Bus Cargo: Focused on road transportation, Tur-Bus Cargo is a major entity in Chile’s cargo and logistics landscape. The company provides a variety of services, including door-to-door deliveries and customized logistics solutions for different industries.
Tips for the small logistics companies in Chile to expand their businesses
These leading multinational firms are increasingly dominating the freight and logistics market in Chile, securing a significant share of the market each year. Their extensive international networks enable them to secure the largest contracts and negotiate the best rates with carriers. In contrast, smaller and mid-sized logistics companies in Chile often struggle to compete for major contracts and face challenges in securing lucrative projects or reliable international partners.
Nevertheless, small and mid-sized freight forwarders in Chile can strategically grow their global presence by joining top freight forwarding networks like the Conqueror Freight Network. Membership in such networks provides numerous advantages, allowing these companies to build a strong international presence, enhance their brand recognition, forge new partnerships, and access additional global business opportunities.
How Joining the best Freight Forwarder Networks Can Benefit Chilean Forwarders
Exclusive Representation in Your City
By joining top freight forwarding networks like Conqueror, forwarders in Chile can become the sole representative for their city. As the largest exclusive logistics network, Conqueror ensures exclusivity by limiting membership to only one independent freight forwarder per port or airport out of the 472 major global locations. This exclusivity allows members to operate effectively as branch offices of the Conqueror Freight Network within their designated areas.
Access to Sales Leads from Over 253 Partners
Conqueror members benefit from a system where they share a portion of their shipments with other network members, facilitating the exchange of new projects and sales leads across the entire network. While members are encouraged to collaborate with network partners, they can also continue working with their existing logistics partners outside of the network.
Additionally, Conqueror hosts an annual in-person meeting which provides members with the opportunity for face-to-face networking, allowing them to discuss and develop collaborative projects in a focused, uninterrupted setting.
Embrace Digital Freight Forwarding
Conqueror Freight Network also supports its members in becoming digital freight forwarders through a range of free online tools. As the first logistics network to introduce a member-exclusive Freight Rate Management Software—FreightViewer—Conqueror offers a digital platform that enables members to generate quotes within seconds. This digital capability helps members stay competitive and streamline their operations.