Tuesday, 26 September 2023 19:42

Kuehne+Nagel Central America as a global logistics engine

Written by Coralia Cuellar

In the dynamics of freight transport, Central America emerges as a key trend point when it comes to driving world trade.

For Kuehne+Nagel, a global logistics operator, this is an area that annually transports an average volume of 54,000 TEU (Twenty-Foot Equivalent Unit). In airfreight, during this first semester it perceived an increase of 2.5% in tons exported and 24% more orders (shipments) than in 2022.

The company leads the world ranking in maritime and air logistics operations and, in Central America and the Caribbean, currently has its own offices in Guatemala, Panama, Honduras, Dominican Republic, Costa Rica, El Salvador, Nicaragua, Trinidad and Tobago and Cuba, as well as specialized agents in Jamaica, Guyana, Aruba, Curaçao, Bonaire and Saint Maarten.

Among the competitive advantages that Central America offers companies to establish distribution operations are the Free Trade Zones. In the case of Panama, Kuehne+Nagel has a redistribution center for key products - such as health care products - for global logistics, where it works in synergy with its clients of all sectors and sizes to design their storage, distribution, repackaging, relabeling and manufacturing processes in an efficient manner, minimizing costs and risks.

Another segment to highlight is "MedTech", a business model that seeks to ensure that manufacturers of vaccines or high-tech medical devices transport their products safely and efficiently. The increase in manufacturing facilities in this sector makes foreign investment highly attractive, which generates new jobs along with a focus on production for export.

The company leads the world ranking in maritime and air logistics operations and, in Central America and the Caribbean, currently has its own offices in Guatemala, Panama, Honduras, Dominican Republic, Costa Rica, El Salvador, Nicaragua, Trinidad and Tobago and Cuba, as well as specialized agents in Jamaica, Guyana, Aruba, Curaçao, Bonaire and Saint Maarten.

Among the competitive advantages that Central America offers companies to establish distribution operations are the Free Trade Zones. In the case of Panama, Kuehne+Nagel has a redistribution center for key products - such as health care products - for global logistics, where it works in synergy with its clients of all sectors and sizes to design their storage, distribution, repackaging, relabeling and manufacturing processes in an efficient manner, minimizing costs and risks.

Another segment to highlight is "MedTech", a business model that seeks to ensure that manufacturers of vaccines or high-tech medical devices transport their products safely and efficiently. The increase in manufacturing facilities in this sector makes foreign investment highly attractive, which generates new jobs along with a focus on production for export.

Today Kuehne+Nagel leads the Healthcare market in this geographic area, working with more than 10 multinational companies that move more than 2,000 TEUs in exports and 1,300 TEUs in imports from the region each year.

"Central America and the Caribbean play a strategic role in our global network of operations, today considered as a key driver to boost adequate freight forwarding. At Kuehne+Nagel we have eight international certifications that support us in meeting the highest quality standards in the processes for products that require it", says Jan Trittin, managing director in Central America and the Caribbean for Kuehne+Nagel.

Digital Ecosystem

Kuehne+Nagel is developing and investing in its digital processes as part of its 2026 business strategy. During transportation, the company uses a comprehensive temperature monitoring and control system that generates alerts about the presence of anomalies or thermal changes that may affect the product.

Another digital innovation is the myKN platform, a customizable dashboard that provides online information, allowing the company to evaluate costs, identify bottlenecks and optimize routes. The tool also measures the environmental impact of shipments and offers specific options to help reduce the carbon footprint.

For Kuehne+Nagel, El Salvador represents a key area for the transportation of goods in the region, due to its strategic location and wide range of seaports that facilitate global trade. In the first half of 2023, the company managed to mobilize 2,000 TEUs in the Retail sector, a 10% increase compared to the volume transported during the same period in 2022.

Kuehne+Nagel has had a presence in Central America and the Caribbean for 27 years, considered a geographic area that is positioned as an essential driver for the success of global logistics.

During the first half of the year, the industries that led the increase in logistics terms were Healthcare, HighTech and perishables, with an increase in the volume of exports in both shipments and airfreight.

For the second half of the year, the company will continue to strengthen its positioning through its "Roadmap 2026" global business strategy.

 

Translated by: A.M