Juan Manuel Rojas, from Sparx Logistics:

"We are experiencing the worst port congestion in history, or at least in the last 20 years."

Industrial engineer Juan Manuel Rojas has just been appointed Global CEO of Sparx Logistics, with a presence in 22 countries across Asia, Europe, and the Americas. Sparx Logistics moves more than 100.000 containers annually and is already considered one of the largest companies in maritime imports from China to Chile (measured by number of containers).

Rojas points out that one of the major logistical challenges is port congestion: "We are experiencing the worst period of port congestion in history, or at least in the last 20 years, with this problem present throughout the world, from the United States and Mexico to Europe and China."

This problem, he adds, may be even more complex than the post-pandemic logistical challenges, as it's not a lack of units or space on ships, but rather the inability to call at ports at the appropriate times. "This has generated extremely long transit times, affecting the entire supply chain. For example, transit time from China to a Chilean port went from 36-40 days to an average of 60, with some cases exceeding 70 days," he adds.

This problem won't be solved anytime soon. "We're going to have to get used to living with this problem," he adds.

Tariff measures and Chile
After the call Liberation Day, there is "generalized chaos. The imposition of new tariffs on China is forcing many companies to redirect their supply chains, increasing pressure on other countries, primarily in Southeast Asia and Mexico. Everything indicates that logistics disruptions will continue," highlights Rojas, who estimates that geopolitical uncertainty, coupled with inflation, will continue to put pressure on costs and force companies to rethink their sourcing strategies.

«Large Chinese manufacturers that sold to the retailers from the United States, and who are now scared, will probably start knocking on the door retailers Latin Americans, giving a new destination to their production. This has a positive side: giant companies with very high quality levels could knock on the door retailers Latin Americans, allowing them to access suppliers they previously had no access to," he added.

At the local level, he indicates that Chile urgently needs improved port infrastructure to allow it to handle larger vessels and "compete logistically with other countries like Peru, which already has its Chancay megaport, and be an alternative to the ports of Argentina and Brazil."

Regarding imports, he notes: "As [Chile] is the last country in the import supply chain, we need to improve our competitiveness. As many ships from China stop from north to south in the Americas, departing through Mexico, the congestion that occurs at the previous ports ends up affecting Chile the most, as it is the final port."

Source
Fresh Plaza

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