What was the rationale of implementing a regional structure for the Americas?

Leschaco is well known not only for being a leading, globally acting freight forwarder, but also for having our own fleet of tank containers with more than 5,000 units. This fleet grows every year. At the beginning of 2020, Leschaco put a new layer on our organizational chart to focus on growth within the region. We currently have offices in Brazil, Chile, Mexico and the US, and we also have very strong relationships with external partners in other important countries. Besides strengthening these partnerships, we also would like to increase our footprint in Latin America which might lead to the opening of more offices. This said, the Covid-19 pandemic had a disruptive impact on our overall growth strategy for the year. After a couple of months with decreasing volumes, we now see signs of recovery in almost all countries. The chemical sector showed a high degree of resilience during the crisis. In comparison to other industries, many chemical products were declared essential and demand remained at high levels.

Chemical imports continue to increase in the main markets in the region (Mexico and Brazil). What does this mean for a freight forwarding company like Leschaco in terms of opportunity?

It is good for our business when Mexico grows their export capacity into Latin America, but we also have more work during the country’s times of struggle when they have to rely more on imports. Leschaco remains involved in coordinating transport for the entire supply chain. With the current climate, our industry has to focus more on integrated solutions. It is not only transporting freight from point A to point B, but covering the entire supply chain.

Have you seen any changes in the trade dynamics due to geopolitical aspects such as the trade war between the US and China?

We felt the impact of the trade war in the second half of 2019. Many of our US customers reduced their volumes as they are linked to the trade with China, and exports to the Asian market significantly decreased. When it comes to our business in Mexico, where we are more linked to imports, the trade conflict had a general impact on the economic growth of the country. In terms of Mexico’s business with Asia, we saw a smaller growth rate compared to previous years.

What is your strategy moving forward?

Leschaco is present in the major markets in the Americas – Mexico, US, and Brazil, where we see huge opportunity to grow at a significant rate. The company is increasingly shifting our attention to a regional focus as customers are looking for regional and integrated solutions rather than country solutions. Leschaco is a family owned business and we are more flexible than most of our competitors. Our agility and adaptability to the needs of our customers are what differentiates us in the market. Our goal moving forward is to be proactive in the market and take on opportunities with both hands.

APLA will celebrate its 40 years in 2020. What have been the main changes you have seen in the wider chemical industry over the last decades?

Such as other industries, the chemical sector is also under an ongoing wind of change. Companies are acting globally, with all the involved opportunities and threats. Mergers and acquisitions became the new normal and emerging markets are increasingly relevant. For our industry it was interesting to see how logistics has become more and more important over the course of the years for our customers to remain competitive.

I would like to congratulate APLA on its 40th anniversary. For our organization the APLA meeting is of highest interest, as we can meet with the entire market, getting insights about trends and outlooks that help us to align our own business strategy. Regretfully, due to the Covid-19 pandemic, we will not be able to meet in person this year. We are all aware that the wellbeing of the participants is priority now, and that virtual communication has become the new normal. Let us keep the fingers crossed that we can return to a normal travel and meeting rhythm in 2021.