Home » Asia-Latin America Trade Capacity Doubles in Three Years | #ShipcoViewpoint

Asia-Latin America Trade Capacity Doubles in Three Years | #ShipcoViewpoint

Deployed capacity on the Asia to Latin America trade lane has more than doubled on a quarterly basis in the past three years. According to data from MDS Transmodal, deployed capacity exceeded 2 million TEUs in the first quarter. Comparing Q1 2024 and Q1 2025, capacity alone grew 20% year-over-year. This rapid growth has been driven by the rise of Asian manufacturing in Latin America, particularly Mexico, as companies seek new production hubs.

To meet growing demand, carriers are deploying larger vessels and expanding routes. An Ocean Network Express (ONE) spokesperson said the ocean carrier will introduce newbuild vessels on its Asia-West Coast South America service in early March which are up to 50% larger. The spokesperson added that the larger newbuilds to be delivered would likely connect the ports of Busan, Shanghai and Ningbo with Ensenada and Manzanillo in Mexico; Buenaventura, Colombia; Guayaquil, Ecuador, and Callao, Peru.

Meanwhile, Evergreen and Cosco expanded their Asia-South America West Coast 5 (WSA5) service in early February. Formerly a Mexico-focused route, it now includes ports in Colombia, Ecuador, and Peru. The new vessels will also bring a boost in reefer capacity. The ONE spokesperson added that the development will support the growing perishables trade in meat, fish, and fruit between China and South America and on North-South routes.

Source: Journal of Commerce

From a local perspective here in China, we are witnessing the significant increase in the volume of goods being moved to Mexico in addition to the West Coast of South America (WCSA) over the past few years, particularly following the pandemic. A major factor driving this trend is the large number of Chinese manufacturers that have established factories in Mexico, allowing them to bring production closer to end users with the added benefit of favorable trade agreements like the United States-Mexico-Canada Agreement.

As manufacturers shift their focus, the term "Chu Hai", which means taking businesses overseas in Chinese, has become increasingly popular among Chinese freight forwarders. Numerous lectures and forums are held every week to discuss how to engage in overseas business. Mexico and several South American countries top the list of destinations for Chinese forwarders seeking to expand their operations.

Shipco has benefited from the increase in demand for services to Mexico and WCSA countries. We have built up our volumes to Manzanillo, Mexico, and have successfully launched a unique consolidation service from Shanghai to Lazaro Cardenas, setting us apart in the market.