Tag: cargox

Latin American Shipping: Opportunities for Startups

In 2014, the US government launched an initiative called “Look South” to show companies in the United States the benefits of shipping to the Latin American market. Despite numerous trade agreements between Latin America and the US, 58% of US companies at the time were exporting to only one other country: Canada or Mexico.

Latin America is a close US trading partner, yet the complicated shipping logistics in most Latin American countries – whether by air, water, or overland – are hurting the region’s supply chain.

The challenge of automating and streamlining shipping logistics in Latin America is becoming more pressing as e-commerce and other B2C delivery businesses take hold. Not only are large corporations dealing with sending and receiving bulk cargo across the region, but individual consumers want more on-demand services that require better organization and logistics.

Latin America still lags behind in the development of its shipping industry. The World Bank reported that in 2014, no Latin American country was in the top 25% of the Logistic Performance Index global rankings. In 2016, this figure hardly changed; Panama is the top-ranked Latin American country for logistics and shipping, yet it comes in 40th on the LPI global rankings. Chile is next at 46th, with Mexico and Brazil ranking 54th and 55th, respectively.

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The Growing Business Opportunities in Brazil

Doing Business in Brazil

Brazil is the fifth largest country by area in the world and the second most populous in the Americas behind the United States, boasting a population of more than 200 million people. This population is largely middle class and based in urban environments, which creates a consistent demand for new goods and services, despite Brazil’s roller coaster economy, high regulations, seemingly endless political scandals, high taxes, and notoriously difficult business climate.

As one of the most challenging places to do business in the world, operating a business in Brazil is no easy feat. But for companies that do take the leap, capturing a piece of this incredibly large and tech-savvy consumer base can be the ultimate prize for anyone doing business in Latin America. There are many opportunities for entrepreneurs and investors to generate Silicon Valley style returns for those who enjoy take risks and are willing to slog through Brazil’s ecosystem.

Here’s an overview of the current opportunities and challenges of doing business in Brazil today. (more…)