DHL Global Forwarding expands ground transportation service in South America

DHL Global Forwarding, the global transport and logistics services company of the DHL Group, has recently expanded its international ground transportation solution on the most relevant routes in South America, such as Argentina, Brazil, Chile, Colombia and Peru.The goal is to improve logistics efficiency in the region, offering customers a competitive and more sustainable alternative in the face of challenges in other modes of transport. In the last two years, DHL Global Forwarding alone has recorded a growth of 35% in land transport volumes. 

“The region is full of opportunities for land transportation, so we are launching a reliable and safe solution to move goods efficiently.With the regional structure, we guarantee a standardized service for all segments, including the automotive, pharmaceutical and consumer goods industry, which require speed and accuracy.In addition, our technology offers safety, flexibility and visibility, making this offer unique in South America”, says Alberto Oltra, CEO of DHL Global Forwarding South America.

The projections indicate that the South American land transport market will grow 4.2% between 2023 and 2027, driven by the need for greater interregional connectivity and the expansion of industrial sectors.In addition, problems in global supply chains affect the availability and delivery times of sea and air shipments, leading to demand for land transport solutions.

In 2023, Brazil exported about 7.65 million tons and imported just over 6.5 million tons over land. These figures correspond to US$19.9 billion dollars and US $10.07 billion dollars, respectively. 

“As the largest country in South America in territorial extension, occupying 47.3% of the area, Brazil plays a key role in international road transport with significant participation in South American routes”, says Eric Brenner, CEO of DHL Global Forwarding in Brazil. “As it borders nine of the eleven countries in South America, Brazil receives tons and exports tons of products from the region annually. Even goods originating in Chile and Ecuador need to rotate through the Brazilian road network daily, especially those that are heading towards Uruguay, Paraguay and Argentina”, says the CEO.

Opportunities in times of disruption

The transport of land cargo continues to have greater flow on traditional routes such as Brazil-Argentina, Chile-Argentina and Ecuador-Peru. However, according to DHL, there was also an increase in demand for less common routes in the region, such as Argentina-Peru and Brazil-Colombia, which are also offered by the company. 

Countries such as Brazil, Argentina and Chile have announced plans to improve and expand their highways in the next five years.In the case of Brazil, for example, the government plans to invest more than US$ 20 billion dollars in road infrastructure, which will facilitate integration between its domestic markets and neighboring countries.This trend reflects how land transport has emerged as an effective solution, considering port congestion, the growing cost of freight and disruptions in sea and air channels.

According to Felipe Vallini, Director of Transportation at DHL Global Forwarding in Brazil, the flexibility that land transport offers is crucial for the region. “With the service, our customers can react quickly to regional disruptions and in different modes, ensuring that their products arrive on time, without relying exclusively on more expensive options or longer terms, such as air or sea transport.”

Dedicated structure and visibility

Through its new Ageera system, DHL Global Forwarding ensures complete supply chain traceability, giving customers the security of working with a supplier that meets international standards.The Ageera system provides visibility of shipments through geolocation and real-time GPS tracking.By collecting data from a variety of sources, such as carriers and logistics providers, the platform transforms raw information into accurate data, providing complete visibility.

With a dedicated team and solid regional structure, DHL Global Forwarding provides homogeneous coverage in all countries. The infrastructure allows customers to enjoy a service aligned in processes, systems and security, regardless of the country of origin of the transport. “Our focus on having an integrated and homogeneous network in all countries of the region allows us to ensure that companies can rely on a single operator to manage their shipments with the highest standards of quality”, adds Oltra.

According to a McKinsey study, 67% of companies in South America are prioritizing reducing their carbon footprint. In this sense, opting for land rather than air or sea transport for intra-regional connections is a quick and efficient way to advance their sustainability goals.