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Latin America Logistics Know-How

17 years of Latin America/Africa route experience, distilled — from port developments to customs essentials, helping you avoid costly missteps.

Route Update

Chancay Port Is Live: The Fastest Direct Sailing from China to South America

Chancay Port, built with investment from COSCO Shipping, entered commercial operation in November 2024. As a direct-sailing deepwater port from China to South America, its key advantage is bypassing the Panama Canal — cutting China–Peru transit from roughly 42 days via Callao to about 28 days, a ~33% improvement.

Initial designed annual throughput exceeds 1 million TEU, with plans to expand to 6 million TEU. As a newly opened port, some customs and operational details are still being finalized, so confirm current requirements with your local customs agent or with us before shipping. See the Chancay Port route page for full details.

Customs Guidance

Why CAFTA-DR Doesn't Apply to Chinese Goods: Dominican Republic Customs Essentials

CAFTA-DR (the Dominican Republic–Central America Free Trade Agreement) is a trade pact between the US, the Dominican Republic, and several Central American countries, granting preferential duties only to goods originating in member countries. Goods manufactured in mainland China do not originate in a member country, so they cannot claim CAFTA-DR preferential rates and are subject to the Dominican Republic's standard import duty on Chinese-origin goods.

This is a common point of confusion for first-time Latin America exporters — don't assume preferential treatment just because goods transit through the US or carry a CAFTA-related label. The Dominican Republic charges ITBIS VAT of roughly 18% on most imports, plus customs duty by HS code typically in the 0-20% range. Provide your exact HS code to verify costs in advance — see the Dominican Republic shipping guide for more.

Logistics Know-How

Container Selection Guide: 20GP vs. 40GP vs. 40HQ Without Wasting Space

Choosing a container type is really about balancing space utilization against shipping cost. 20GP holds about 33.2 cbm and suits dense, heavy cargo; 40GP at about 67.7 cbm is the most commonly used general-purpose size; 40HQ (high cube) at about 76.4 cbm — roughly 30cm taller than 40GP — particularly suits light, bulky cargo (furniture, appliances, toys).

A common mistake is defaulting to 40HQ regardless of cargo type — for dense cargo (hardware, machine parts), a 40HQ may hit its weight limit (typically ~26-28 tons) well before the volume fills up, wasting the extra space you paid for. In that case, a 20GP or a combination of 20GP/40GP is often more cost-effective. Share your approximate weight and volume and we'll help calculate the optimal loading plan — see the FCL/LCL services page for details.

Peak Season Tip

Peak-Season Ocean Booking: Why You Should Book 4-6 Weeks Ahead

Roughly August through November each year is the traditional peak season for Latin America routes, as importers stock up ahead of Christmas and year-end promotions, sharply increasing demand for container space. Carriers often face tight availability during this window, and rates can fluctuate significantly.

We recommend booking FCL/LCL space 3-4 weeks in advance during regular periods, and 4-6 weeks ahead during peak season to lock in space. Booking early not only avoids delays from space shortages but also helps secure a more stable rate before spikes hit. If your order has a firm delivery deadline (e.g. tied to a seasonal promotion), talk to us early to plan the schedule.

Pricing Know-How

Air Freight "Dimensional Weight" Explained: Avoiding Higher-Than-Expected Charges

International air freight calculates volumetric (dimensional) weight per IATA standard: volumetric weight (kg) = length × width × height (cm) ÷ 6000, and the chargeable weight is whichever is greater between volumetric and actual weight — commonly called being "dim-weighted." This means even light cargo can be charged well above its actual weight if the packaging is bulky (e.g. foam-padded electronics or inflatable products).

The key to reducing dim-weight cost is optimizing packaging — minimizing unnecessary void space while still protecting the cargo, and choosing boxes sized close to the product's actual dimensions. If you're unsure whether your shipment will be dim-weighted, share the exact length, width, height, and weight and we'll calculate it in advance — see the international air freight page for details.

FAQ

Logistics Basics FAQ

What is a Bill of Lading?
A document issued by the carrier serving as a receipt, contract evidence, and title document. Pickup at destination typically requires an original or telex-released Bill of Lading.
What are a Commercial Invoice and Packing List?
The Commercial Invoice records price and is the basis for customs duty; the Packing List records packaging specs and weight for verification. Both are essential documents for nearly all shipments.
What basic documents are needed for export customs clearance?
Commercial Invoice, Packing List, and customs authorization; some cargo also needs an export license or Certificate of Origin. Requirements vary by HS code and destination — confirm with your forwarder early.
What is an HS Code, and why is it needed for a quote?
An internationally standardized product classification code used by customs to set duty rates. An accurate code enables precise duty estimates; an incorrect one can cause clearance delays.
What is a Certificate of Origin?
An official document proving country of origin. Some destinations grant duty preference based on it, but mainland China–made goods generally don't qualify for US–Central America/Caribbean FTAs like CAFTA-DR.
What's the purpose of a container seal?
A one-time tamper-evident lock whose number is recorded on the Bill of Lading. Verify the number matches at pickup; photograph and contact your forwarder immediately if it doesn't.
What is BAF (Bunker Adjustment Factor)?
A carrier surcharge based on fuel price fluctuations, listed by container type or chargeable weight, adjusted periodically with international fuel prices.
When do demurrage and detention charges apply?
Demurrage applies for containers left at port beyond free storage; detention applies for empty containers not returned on time. Both accrue daily — plan clearance and pickup in advance.
Do I need to buy cargo insurance separately?
Unless the trade term is CIF/CIP, insurance is typically bought separately. High-value or fragile cargo should carry full coverage, with premiums based on value and shipping method.
How can I track my cargo's status?
Ocean cargo via the Bill of Lading number on the carrier's site; air cargo via the AWB number on the airline's site. We also proactively share status updates at key milestones.

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