South America Third Party Logistics (3PL) Market Outlook, 2028

South America has experienced economic growth, albeit with variations between countries. As economies diversify, the demand for logistics services to move goods and support supply chains increases. The region is actively engaged in international trade agreements. Trade liberalization efforts, such as MERCOSUR, facilitate cross-border trade and boost the demand for 3PL services to manage and optimize supply chains across borders. South America is experiencing rapid urbanization, with more people living in cities. This leads to increased demand for logistics services to move goods efficiently within urban areas. Governments are investing in infrastructure development, including transportation networks, ports, and airports. Improved infrastructure reduces logistics bottlenecks and enhances the efficiency of 3PL operations. Increasing awareness of environmental issues has prompted a focus on sustainable logistics practices. Companies are seeking 3PL providers who can help reduce carbon footprints and adopt eco-friendly transportation methods. Governments in South America often update regulations and trade policies. Changes in customs procedures, tax laws, and compliance requirements can significantly impact the 3PL industry, making it crucial for providers to stay updated and adaptable. Certain industries, such as agriculture, mining, and manufacturing, have witnessed growth in South America. These industries rely on efficient 3PL services to manage the transportation and distribution of their products. Outsourcing logistics services to 3PL providers can often be more cost-effective than managing in-house logistics operations, which drives demand for 3PL services. South American businesses often require specialized services, such as temperature-controlled logistics for perishable goods and cross-border expertise, leading to a demand for specialized 3PL providers.

According to the research report, “South America Third-Party Logistics (3PL) Market Outlook, 2028” the South America Third-Party Logistics (3PL) market is anticipated to add more than USD 22 Billion market size from 2023 to 2028. The adoption of technology is driving efficiency and transparency. 3PL providers are investing in advanced technologies like warehouse management systems, transportation management systems, IoT devices, and real-time tracking to optimize operations. Data analytics is being used to gain insights into supply chain performance. 3PL providers are leveraging big data and analytics to make data-driven decisions, improve forecasting, and enhance operational efficiency. To address the diverse geography of South America, 3PL providers are increasingly adopting multi-modal transportation solutions, combining road, rail, sea, and air to optimize routes and reduce costs. The demand for cold chain logistics services is growing, especially for the transportation of perishable goods, including food and pharmaceuticals. 3PL providers are investing in refrigerated storage and specialized transportation solutions. The last-mile delivery segment is evolving with the introduction of new delivery models, including drones, autonomous vehicles, and crowd-sourced delivery services. 3PL providers are experimenting with these technologies to enhance efficiency. Automation is gaining prominence in warehouses and distribution centers. Robotic solutions, such as autonomous forklifts and pick-and-pack robots, are being integrated into 3PL operations to boost efficiency and reduce labor costs. Voice recognition and AR technologies are being used in warehouses for tasks like order picking and inventory management, increasing accuracy and reducing training times. Warehousing trends include the use of multi-level mezzanine structures, smart shelves, and AI-driven inventory management to maximize storage space and streamline operations.

Brazil is the largest economy in South America, with a diverse range of industries, including agriculture, manufacturing, and services. This diversity creates a strong demand for logistics services across multiple sectors, driving the growth of the 3PL market. Brazil is the largest country in South America and covers a vast expanse of territory. Its size and geography make logistics a complex endeavor, creating opportunities for 3PL providers to offer solutions that address these challenges. Brazil has a large and growing population with increasing purchasing power. This has led to a rise in consumer demand for a wide range of products, including those purchased through e-commerce, boosting the need for 3PL services to manage supply chains and last-mile deliveries. The Brazilian government has invested in improving infrastructure, including transportation networks, ports, and airports. Improved infrastructure is essential for the efficient movement of goods and has contributed to the growth of the 3PL industry. Brazil is part of regional trade agreements such as MERCOSUR and global agreements, contributing to its status as a logistics hub for the region. This international trade generates demand for 3PL services to manage cross-border operations. Brazilian ports, especially in cities like Santos and Rio de Janeiro, have seen infrastructure improvements, making them more efficient for international trade and boosting the 3PL sector.

South America Third-Party Logistics market based on mode of Transport the market is segmented into roadways, railways, waterways and airways.

Rail transport is often more cost-effective for long-distance cargo transportation compared to road or air transport. South America's vast landscapes and long distances make rail transport an attractive option for moving goods in a cost-efficient manner. Rail transport is considered a more environmentally friendly mode of transportation compared to road transport, as it typically produces lower greenhouse gas emissions per ton of cargo transported. Given the growing emphasis on sustainability, rail transport aligns with green logistics practices. South America is a continent with diverse geographic features, including mountains, rainforests, and deserts. Rail transport is particularly advantageous for navigating challenging terrain, providing a reliable means to transport goods where other modes may be less feasible. Railways are well-suited for transporting bulk cargo, such as agricultural products, minerals, and industrial goods. South America's significant agricultural and mining industries make rail transport an essential part of the logistics supply chain. Railways offer long-distance connectivity within and between countries, facilitating cross-border trade. In South America, where countries have large land borders and significant trade relationships, railways play a vital role in connecting markets. South American cities can experience significant road congestion and traffic, which can lead to delays in the delivery of goods. Rail transport offers a solution to bypass these issues, ensuring more reliable and timely deliveries. Railways are particularly well-suited for the transportation of bulk liquids such as oil, chemicals, and ethanol. The ability to move such goods efficiently is a key driver of rail's growth.

In addition based on services the market is divided into Domestic Transportation Management (DTM), International transportation management (ITM), Dedicated contract carriage (DCC), Warehousing & Distribution (W&D) and Value-Added Logistics By Services (VALs).

South America is home to several countries with a strong presence in international trade. As global trade continues to expand, businesses in the region require comprehensive solutions to efficiently manage the transportation of goods across borders. ITM services are critical for orchestrating these complex logistics operations. South America has a significant volume of cross-border trade, both within the region and with other continents. ITM providers specialize in coordinating and optimizing the movement of goods across international borders, ensuring compliance with customs regulations and minimizing delays. Navigating customs and trade regulations can be challenging, especially in South America, where regulations can vary widely between countries. ITM providers have expertise in customs compliance and documentation, ensuring smooth clearance and minimizing the risk of delays and penalties. ITM services offer real-time visibility and transparency into the supply chain, helping businesses track their shipments at every stage. This visibility is crucial for managing the movement of goods across borders and making timely decisions. ITM providers are skilled at selecting the most efficient transportation modes for international shipments. They evaluate factors such as cost, time, and cargo type to optimize the selection of air, ocean, road, or rail transport. ITM services focus on route optimization to reduce transportation costs and transit times. Given the significant distances involved in international trade, this optimization can lead to substantial cost savings.

In terms of end user the market is divided into Manufacturing, Healthcare, Retailing, E-commerce, Automotive, Food & Groceries, Technological and Others.

The healthcare sector is highly regulated, and compliance with various laws and standards is crucial. 3PL providers specializing in healthcare logistics have in-depth knowledge of these regulations, ensuring that products are handled, stored, and transported in compliance with healthcare standards. Healthcare products, including pharmaceuticals and medical devices, often require specific temperature conditions for storage and transportation. Healthcare-focused 3PL providers offer temperature-controlled solutions, such as refrigerated and cold chain logistics, to ensure the integrity and efficacy of sensitive products. Healthcare products, especially pharmaceuticals and medical equipment, often require specialized handling and storage. 3PL providers in the healthcare segment have facilities equipped with the necessary infrastructure, including cleanrooms and secure storage areas. The transportation of vaccines, biologics, and other temperature-sensitive products is a growing part of healthcare logistics. 3PL providers specializing in healthcare offer expertise in cold chain logistics, including the use of temperature-monitoring technologies and packaging solutions. The rise of e-commerce in healthcare, including online pharmacies and telemedicine, has increased the need for 3PL providers to handle direct-to-patient deliveries and ensure the timely supply of medications and medical equipment.

Companies Covered in this report:

DHL, FedEx Corporation, CH Robinson, Nippon Express , kerry logistics network limited, Maersk Logistics, DB Schenker, UPS Supply Chain Solutions, Kuehne + Nagel, DSV, Geodis

Considered in this report

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• South America Third-Party Logistics (3PL) market Outlook with its value and forecast along with its segments
• Country-wise Third-Party Logistics (3PL) market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:

• Brazil
• Argentina
• Colombia

By Mode of Transport

• Roadways
• Railways
• Waterways
• Airways

By Services

• Domestic Transportation Management (DTM)
• International transportation management (ITM)
• Dedicated contract carriage (DCC)
• Warehousing & Distribution (W&D)
• Value-Added Logistics By Services (VALs)

By End User

• Manufacturing
• Healthcare
• Retailing
• E-commerce
• Automotive
• Food & Groceries
• Technological
• Others

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.