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The challenges faced by freight forwarders in LatAm

When it comes to Latin America, a freight forwarder should have in mind that it is a fragmented region and each country has specific regulations and procedures. And that is the main challenge faced by freight forwarders companies doing business with LatAm. 

That was the main takeaway of our conversation with Elena Garduño at the Forwarder Online Conference. In Latin America, there are some challenges faced by the different amount of countries and regions, as Elena told us:

“We do have a challenge since we have to comply with each and every one of the countries of the company’s regulations and procedures because in general countries have certain international standards for shipments handling especially when it comes to security, customs, document procedures, and authority inspections.”

The biggest challenges faced by freight forwarders in LatAm:

  1. Different regulations for each country

Because Latin America is a big region each country has its rules and regulations, but many forwarders don’t know about that and that ends up making their job a lot harder. For that reason, before sending cargo to Latin America talk to your forwarder partner to check the regulations of the country that it’s going to receive the cargo, this way you will avoid misunderstandings and costs. 

  1. Bureaucracy:

Shipping to Latin America involves a lot of bureaucracy because when the cargo arrives at the border the authority inspects has to make sure that the cargo has followed the necessary precautions, and each country and each cargo has a specification. As long as the documents, which always have to be assigned with a blue pen.

  1. Cargo delay:

It’s clear that according to the characteristics of each country of LatAm a specific process is developed, and sometimes that ends up affecting the cargo movement, until further notice. And because of that, the shipping cost can get even more expensive than the planed and quite time-consuming. 

What should be considered when partnering with a forwarder from Latin America:

LatAm is a great region to partner with, especially because it is growing more and more every year. However, before sending cargo to any of the countries in Latin America there are some things that should be considered. 

  • The most important one is that each country has its own characteristics and regulations, for that reason, it’s important to review with your partner what can and cannot be done. 
  • The customs issues and free trade agreements that each region has. 
  • The requirements that each cargo has and how it should be shipped to the country. 
  • The requirements of the documentation papers. 

Freight forwarders are always going to be facing challenges across the industry, especially when it comes to a lack of communication with the partners. That is why the most important thing in a forwarder business is to maintain good communication and relationship with your partners.

To know more about the vision of Elena Garduño about the challenges faced by freight forwarders in LatAm and how the coronavirus pandemic affected air cargo transportation watch the video below.