PERU FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

PERU FREIGHT AND LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Peruvian freight and logistics market is expected to witness a CAGR of 7.4% during the forecasted period of 2020-2025. The Peruvian logistics is pulled back by the logistical cost overruns, increasing final prices, and a loss of competitiveness. It is necessary to implement regulations that reduce logistic cost overruns that are paid by exporters and importers.

Key Highlights

• The high agricultural exports and the plans to increase the exports further by the government are major drivers for the growth of the logistics industry.
• The signing of a memorandum of understanding (MoU) with China on the Belt and Road Initiative (BRI) strengthened the ties between Peru and China. The MoU, which was signed during the second Belt and Road Forum for International Cooperation held in Beijing, will boost bilateral relations through greater investment. As a result, an increase in investments in the logistics infrastructure will reduce logistics costs.

Key Market TrendsAgricultural Exports Driving Logistics Growth

Agro exports are the second currency generator for Peru. Since 2000, its export figures have experienced an exponential increase, from USD 700 million to USD 7 billion, thus positioning itself as a key commercial ally for international markets. Peru is looking to increase its agricultural exports to USD 10 billion in 2021 from USD 7.5 billion in 2019, as the government plans to increase competition against countries like Mexico.According to recent reports, exports carried out by Peru between January and November 2019, reveal that the export trend continues to rise. In 2019, Peru's fruit and vegetable shipments accounted for 74.2% of total non-traditional agro-industrial exports; these numbers were up 10.8% and 2.9%, respectively.Avocado exports grew to USD 741 million (+ 3%), followed by blueberries with figures above USD 733 million (+ 54%), and grapes with a total export figure of USD 599 million (+ 11%). Other agri-food products with outstanding export growth in 2019 were fresh asparagus, which reached USD 349 million (+ 3%), and onions, with USD 76 million (+ 23%).The first two destinations for Peruvian vegetables were the United States and Spain, which together accounted for 66.2% of shipments. As agricultural exports increase, the demand for logistics operations will further grow from the agricultural sector.

Ecommerce Is Growing in the Country

Peru is the fifth-largest internet market in Latin America, as well as the country with the highest growth in internet users in the region. In 2017, there were 18 million people connected to the internet in Peru, making the penetration rate of 56%. Connectivity is growing, and it was estimated that by 2019 there would be 21.3 million internet users in the country. Even though connectivity is more common in urban areas, internet access for rural households has expanded by nearly 19 times in 2017.According to a study, Peru has the highest growth rate in Latin America in e-commerce. In the first half of the year 2019, online sales turnover in Peru grew 44.2% over countries, such as Argentina, Chile, and Brazil, which have more time in the e-commerce market. Currently, 50% of online shoppers are in Lima, and the remaining half comes from within the country, while 30% of the total eCommerce market makes their purchases online through a smartphone or smartphone.The growth of eCommerce is a major opportunity for the country where the eCommerce market is still growing and has shown strong potential in the previous years.

Competitive Landscape

Ther Peru freight and logistics market has a presence of more than 800 players and is fragmented. International players have a strong presence in the country's logistics market.Technology integration is slowly but steadily increasing, and the players that have invested in the technology are expected to have a competitive edge in the market.Some of the international players present in the market are DHL, DB Schenker, Agility, and UPS to mane a few.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

CEVA Logistics
DHL
DB Schenker
Agility Logistics
JAS WORLDWIDE
United Parcel Service Inc.
Avianca Cargo
Perurail SA
Transaltisa SA
SERVOSA GAS SAC
Transportes Rodrigo Carranza SAC
IMPALA TERMINALS

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