Issued by:Latam Cross Border Service

As a rapidly developing emerging economy, Latin America has also invested considerable resources and material resources in logistics infrastructure in recent years. Cui Kai took Mexico as an example to illustrate that the advantages of solid public finance and geographical environment are actually conducive to Mexico to seek greater development space on the basis of embracing e-commerce; He said that it can be seen from the relevant industry data reports that the 3200 km border between Mexico and the United States actually has a wide range of Railways and routes, which has attracted many investors willing to expand the Latin American market and benefited from the strategic geographical location of Mexico and other countries, including Chile, Brazil and Argentina, Both have relatively good logistics infrastructure and sufficient population to develop local logistics construction.  
 
Under this development opportunity, Cui Kai also expressed that it is an important choice for Chinese sellers who are willing to enter Latin America to seek cooperation with logistics suppliers with big brands and good reputation in the first stage of development; Moreover, the logistics dedicated line to Latin America is one of the longest flow directions of cross-border logistics transit lines in the world. Therefore, while there are many opaque costs in the cross-border distribution of goods, the seller must not suffer heavy losses due to the greed for logistics costs; As a seller, it is also necessary to understand some import policies of relevant Latin American countries. For example, in terms of textiles, the seller may need to realize that Latin American countries will impose relatively high tariffs and relatively complex audit. Therefore, the seller must prepare relevant materials before delivery to avoid seizure due to incomplete materials after arrival at the customs_ ueditor_ page_ break_ tag         In recent years, in Mexico, railway locomotives, multiple units, passenger cars, freight cars and metro trains of various gauge, standard and model manufactured by CRRC have been intensively delivered. When attending the signing ceremony, Mexican President Jose Manuel s said that Mexico has a vast territory and a perfect railway system is very important to economic development. He thanked Chinese enterprises for their support for the development of Mexico's railway system.  
 
In an interview with Xinhua news agency, Mexico's minister of transport said that investment from China is extremely important. Mexico hopes to improve infrastructure and provide good logistics support for enterprises. These agreements signed with China are conducive to the development of Mexican railways. These three freight railway lines run through the main grain producing areas and ports in Mexico. The upgraded railway system will greatly reduce logistics costs and improve the export competitiveness of Mexican agricultural products.  
 
Yan Meng, regional director of China Railway Construction Corporation in the Americas, introduced that the total route of the Mexican freight railway reconstruction project is 1813 kilometers, which will become the first Mexican railway project built by comprehensively using Chinese scheme, Chinese technology and Chinese equipment. After the completion of the project, the line speed will be increased from the current 40km to 90km, and the annual freight volume will be increased from the current 3 million tons to 9 million tons, which is of great significance to promote China Arab production capacity cooperation and complement each other's economic advantages.  
 
Juliana Gonzalez joregi, director of China Research Department of Latin American Social Sciences Department of San Andres University in Mexico, said that many cities in Mexico are built along railways, which is of great significance to Mexico's development. Chinese enterprises' assistance in the transformation and upgrading of Mexico's railway system will revitalize these cities, bring more export opportunities to many small and medium-sized enterprises along the line and create a large number of employment opportunities. She told reporters that the three major freight railway lines can drive the economy of northern, central and southern Mexico respectively. The reduction of transportation costs will help to improve productivity and commodity added value, and bring important opportunities for Mexico's economic development.  
__ ueditor_ page_ break_ Tag air transport prices are high, and sea transport prices are rising, doubling or tripling. Although the logistics situation in Latin America is in a normal state, compared with previous years, the logistics cost this year is much higher!  
 
Influenced by COVID-19, millions of Latino people chose online shopping because of their isolation at home. With the arrival of this year-end peak season, it is expected that cross-border e-commerce sellers will receive considerable revenue, but the premise is to smooth out the "stubborn disease" of logistics.  
 
Latin America in the peak season: e-commerce ushered in new growth, and shipping prices soared  
 
First, the formation of local online shopping habits in Latin America. According to the "appsphere" group, in the second quarter of this year, the downloads of e-commerce applications in Latin America, led by Brazil and Mexico, increased by 93%. According to the Brazilian E-Commerce Association, e-commerce in the region's largest economy increased by 56.8% between January and August.  
 
Second, the second outbreak of the global epidemic. In recent years, the number of new cases in many European countries has been rising, the United States has been hovering at a high level, and so has India. It can be said that the outbreak of the second wave of the global epidemic has begun. The closure and isolation measures will promote the growth of e-commerce, and the Latin American market is no exception.  
 
Third, after the epidemic in the first half of the year, sellers and logistics providers have had a response mechanism for various emergencies under the epidemic, which can successfully complete the connection of various chains.  
 
For this year's peak season, compared with previous years, cross-border e-commerce will have a very large growth trend this year. However, different from the peak season in previous years, there is a strong demand for sea transportation. With the adjustment of shipping lines of shipping companies, the warehouse volume decreases, while cross-border e-commerce goods show a large growth trend. It is expected that the logistics is still in a tight state in the second half of the year. The situation of grabbing shipping dates and containers will also be staged. At the same time, logistics prices are like runaway wild horses, out of control.  
 
It is reported that there are few routes in Latin America. Since June, freight prices have soared and accelerated in August. In mid September, freight rates from Shanghai to Santos, Brazil's highest port, soared a record 26% to $3646 per square foot. The increase of $745 was more than twice the increase of $368 the previous week.  
 
At present, the proportion of cross-border e-commerce goods in Latin America is 50% by air and 50% by sea. At present, the limitation period for sea transportation is 40 days and that for air transportation is 6-7 days. The limitation period is very different and the price is very different. Take Mexico as an example, the price of air transportation is about 4 times that of sea transportation. "Sea freight prices will show a downward trend after October. Sea freight takes about 40 days, that is, sellers need to ship goods to Latin America at least 40 days in advance. According to time conversion, after late October, the demand related to sea freight will decrease and the price will decrease accordingly. In contrast, air freight prices will increase," he said.  
 
"Black heart" logistics providers are everywhere. How to choose logistics in peak season?  
 
Logistics plays an important role in the peak season. Looking back this year, affected by the epidemic, the seller's packages were delayed frequently, and the seller encountered the "black hand" of the logistics provider. The air transportation was changed to land transportation, the money ran away, and the seller complained incessantly after soliciting goods. It is revealed that such incidents occur every week in the cross-border e-commerce circle.  
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