Tom Crowley, Chairman and CEO, Crowley Maritime

https://www.crowley.com
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Tom Crowley

Latin America has long been a reliable source of trade for the US. As we enter 2017, we expect a continuance of partnership with the region, which saw imports and exports totaling more than $52 billion in 2015 and just over $39 billion through September 2016. As retailers compete to reveal new lines and seasonal merchandise, and the year-around produce season dominates consumer expectations, it has become essential to have frequent, flexible restocking cycles and easy, quick, access to fresh produce, the latest goods and seasonal retail merchandise.

While the US has looked to the Far East for low-cost merchandise for a number of years, increasingly, we are seeing manufacturers turning to near-sourcing in Central America to gain efficiencies, cost competitiveness and speed to market. In addition to shorter transit times between Central America and the US — often two to four days by ocean and less by air, as compared to 22 to 25 days from China — the region also offers competitive labor rates, a regionally standardized language, the convenience of a similar time zone, availability of cost-efficient regional transportation, and better control of goods during the delivery schedule because they are closer to the marketplace.

This continued resurgence in sourcing closer to home has increased the value and importance of logistics providers in Central America to help customers increase their supply chain velocity while reducing overall landed costs. As such, manufacturers and growers are turning in greater numbers to single-source logistics providers that offer transparency, traceability, and reliability in their supply chains from farm or manufacturing facility all the way to the consumer at the retail level.