Logistics is the flow of goods from the point of origin to the point of destination and consumption. Logistics services cater to customer requirements and third-party logistics (3PL) is a provider of outsourced logistics services. Outsourcing logistics operations to specialized 3PL vendors is helping the companies in Brazil to focus on their core competencies. Logistics and supply chain cost cutting and increase in operational efficiency are other benefits associated with outsourcing logistics. Also, the increase in manufacturing activities as well as trade volume are boosting the growth of the 3PL market in Brazil.
Technavio’s analysts forecast the 3PL market in Brazil to grow at a CAGR of 4.01% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the 3PL market in Brazil for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.Technavio's report, 3PL Market in Brazil 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – 3PL Market in Brazil 2017-2021
Technavio recognizes the following companies as the key players in the 3PL market in Brazil: CEVA, Logistics, C.H. Robinson, DB Schenker, Deutsche Post DHL Group, DSV, Kuehne + Nagel, Nippon Express, and Rhenus
Other Prominent Vendors in the market are: Agility, Allcargo Logistics, APL Logistics, BDP International, Damco, Expeditors, FedEx Supply Chain, Gati, Hitachi Transport System, Hub Group, Hyundai Glovis, Imperial Logistics, J.B. Hunt, Kerry Logistics, Logwin, Menlo Worldwide Logistics, Mitsubishi Logistics, NFI, Nippon Express, Panalpina, Ryder, Sankyu, Sinotrans, SNCF, UPS, Werner Enterprises, and Wincanton.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Use of multi-modal logistics. Multimodal transportation is considered as a major reason for the deduction in logistics costs as it is an efficient way of delivering goods over long distances. In addition, it reduces theft. Transportation and containerization of goods are increasing at a significant pace, in turn, facilitating trade activities. Vendors prefer multi-modal logistics because it is more convenient and economical to use a combination of modes of transport nationally as well as internationally. However, in Brazil, most of the transportation is done using highways, while rail is the second-most preferred mode of transportation.”
According to the report, one of the major drivers for this market is Using 3PL services to reduce costs. One of the major factors driving the growth of the 3PL market in Brazil is the reduction in logistics costs of the end-user companies by utilizing 3PL services. The companies can focus on their core competencies and improve their efficiency by outsourcing the logistics part of their operations to 3PL service providers. Brazil's logistics costs accounted for 11%-14% of the country's GDP in 2016, which is estimated to increase significantly during the forecast period.
Further, the report states that one of the major factors hindering the growth of this market is Varying transportation costs in different regions. Cargo transportation in Brazil is expensive, resulting in expensive logistics systems, even though there are numerous navigable rivers in the country. Also, there is a huge construction space for infrastructural improvement as well as railway maintenance. The transportation costs for different places in Brazil vary and this is a major challenge limiting the growth of the 3PL market in Brazil. 3PL service providers are exposed to the varying costs of oil, fuel, and toll duties, as well as the government policies.
CEVA, Logistics, C.H. Robinson, DB Schenker, Deutsche Post DHL Group, DSV, Kuehne + Nagel, Nippon Express, Rhenus, Agility, Allcargo Logistics, APL Logistics, BDP International, Damco, Expeditors, FedEx Supply Chain, Gati, Hitachi Transport System, Hub Group, Hyundai Glovis, Imperial Logistics, J.B. Hunt, Kerry Logistics, Logwin, Menlo Worldwide Logistics, Mitsubishi Logistics, NFI, Nippon Express, Panalpina, Ryder, Sankyu, Sinotrans, SNCF, UPS, Werner Enterprises, and Wincanton.