Industry Definition

Road freight is the movement of commodities by motor vehicles via a network of roads from one site to another (a place of loading and a place of unloading). Latin America road freight transport market covers the economic overview of Latin America while covering the trucking market segmented by end users, destination, distance, truckload, temperature and country.

Key Figures

Total Number of Companies in Latin America: 
Number of Companies in Transportation and Warehousing Sector in Latin America: 
Market Size of the Road Transport Industry in Latin America: ~USD xx billion (2021) 

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Brief on the Latin America Road Freight Transport Market​

The Latin America Road Freight Transport Market is estimated to grow with a compounded annual growth rate of about 5.5% during the forecasted period of 2023-2028.  

With the triple effect of COVID-19, followed by Russia-Ukraine war and growing inflation, the Latin American economy is expected to experience a relatively slow growth in the year 2023. This is expected to be accompanied by the rising price of oil and shortage of labor forces. However, with increasing levels of trade relations across globe with countries like China, India and the European Union, the regional trucking industry is expected to experience boom during the forecast period. 

The government is taking strict steps to develop the infrastructural conditions of the region. The public-private associations are expected to further focus on the construction of roads, highways, bridges, ports and airports in the region. In Colombia, under the plan – Commitment to Colombia – 78 transport sector projects are under development. Along with this, fourth generation (4G) road and highway projects are 65% complete, including four of these concessions that have now finished the building phase, while twelve new fifth generation (5G) projects are also set to be given for roadworks, railroads, waterways, and airports. 

The Latin American region is also one of the biggest victims of cargo theft over the period of time. As reported by the Mexican Secretariat of Security and Citizen Protection (SSPC) in March 2022, 804 cases of cargo theft were recorded representing an 18% growth as compared to March 2021. The most stolen goods included fresh food, food items, construction materials, automotive parts and electronic products. 

The Latin American countries also backed by the growing population, changing consumer behavior and increasing internet penetration are also expected to experience growth in the e-commerce sector during the forecast period; leading to an ever-growing demand for last mile and same day delivery market. The e-commerce companies in the region are actively outsourcing logistics services to aid the market demand. 

Aided by USMCA, the trucking industry is further expected to grow given the relaxed trade barriers and a stronger focus on domestic manufacturing. 

The region is also one of the biggest producers of fruits in the world. According to WTO (World Trade Organization) data, the Latin American contribution is increasing, led by USMCA partner Mexico, which accounts for around USD 38 billion, or more than 74% (as reported in October 2022), of the continent’s total exports to the United States. However, other Latin American nations like Brazil, Chile, and Peru are laying the groundwork for a larger share of the US product import market. 

The highly fragmented and competitive market for road freight transportation in Latin America is experiencing a growing number of firms expanding their offerings in the industry to achieve a competitive edge. To compete with established players, a growing number of players with digital capabilities are expanding their activities. The logistics infrastructure is being developed by the South American nations, which is anticipated to increase market activity and help businesses capitalize on the potential in the area. XPO Logistics, Dachser, Fedex, Kuehne + Nagel and Deutsche Post DHL Group along with a mix of international and domestic players are some of the leading players in the market. 

Table Of Content

  1. Market Overview
    1. Economic Overview of Latin America
    2. Overview on Latin America Road Freight Transport Market
    3. Inter-modal Share of Freight Transportation in Latin America
  2. Market Dynamics
    1. Market Drivers
    2. Restraints
  3. Value Chain Analysis
  4. Porter’s Five Forces Analysis
  5. Spotlight on Infrastructural Development in Latin America (Covers Investment on Infrastructure, Length of Roads Paved and Unpaved) 
  6. Government Regulations and Initiatives
  7. Spotlight on Trade Activities in Latin America
  8. Insights on Factors Affecting the Freight Rates
  9. Spotlight on Containerization in Latin American Transportation Sector 
  10. Market Segmentation
    1. By End-Users
      1. Agriculture, Fishing and Forestry
      2. Construction
      3. Manufacturing
      4. Mining
      5. Trade (Wholesale and Retail)
      6. Others
    2. By Destination
      1. Domestic
      2. International
    3. By Truckload
      1. Full Truckload (FTL)
      2. Less Than Truckload (LTL)
    4. By Distance
      1. Long Haul
      2. Short Haul
    5. By Temperature
      1. Controlled
      2. Non-Controlled
    6. By Country
      1. Mexico
      2. Brazil
      3. Colombia
      4. Chile
      5. Rest of Latin America
  11. Competitive Landscape
    1. Market Concentration Overview of Latin America Road Freight Transport Market
    2. Company Profiles
      1. Deutsche Post DHL Group 
      2. XPO Logistics
      3. Dascher
      4. Fedex
      5. Kuehne Nagel
      6. Company 6
      7. Company 7
      8. Company 8
      9. Company 9
      10. Company 10
  12. Outlook and Opportunities in the Market
  13. Appendix
    1. GDP Distribution and Growth by Economic Activities
    2. Inflation Statistics
    3. Contribution of the Transport and Storage Sector to GDP