Global shortages already impacting Latin American countries

The global shortage begins to wreak havoc in Latin America. Fertilizers for the powerful agricultural industry of Brazil, semiconductor chips for Mexican automakers or ships to export Colombian coffee are just some of the shortcomings.

The supply chain in some countries of the region is already beginning to stress despite the removal of restrictions due to the pandemic of the COVID-19, since Latin America is clearly an importer and depends on world trade.

Brazil suffers from fertilizer shortage

The South American giant has suffered the ravages of the collapse of Asian ports due to the shortage of fertilizers, since fertilizers for agribusiness come mostly from China, your main business partner.

Eduardo Rangel, special advisor to the Ministry of Agriculture and Livestock, has told the EFE agency that the crisis will not be immediate but the effect could be felt in the 2021-2022 harvest.

This has led Brazil to start closing contracts with other suppliers to reduce a possible shortage.

Automotive industry and retail sector: the hardest hit in Mexico

The Mexican automotive industry has also been affected by the lack of semiconductor chips.

“We are very vulnerable, since we import many products, not only from China, but also from the United States,” Pablo López Sarabia, a professor at the Tecnológico de Monterrey, told EFE.

The retail sector has also been badly hit and there is a certain lack of products that were in high demand in the pandemic, such as bicycles.

The central bank of Mexico attributes to these factors part of the rise in inflation, which stands at close to 6% so far this year, double the official goal.

Sarabia warned that supply chains will not recover until near the end of 2022.

Prices rise in Colombia warned

In Colombia, in addition to possible problems finding some Christmas gifts, such as toys, spirits, electronic products and household appliances, they could also experience an increase in prices.

“The shortage helps to increase prices, but the greatest impact is on logistics costs that have risen dramatically,” Javier Díaz, president of the National Association of Exporters of Colombia (Analdex), told EFE.

However, for the specialist, the problem would be far from being solved in Latin America, unlike the rest of the world.

“We are barely 4% of the shipping companies’ business, we are not a priority. At least throughout 2022 we are going to have this complicated logistics and high costs ”.

A matter of time in Chile

In Chile, the pressure is not so much in the availability of products, but in inventories and waiting times, especially in durable goods, the director of Studies of the Santiago Chamber of Commerce (CCS) told EFE , George Lever.

“There is a very strong increase in the entire supply chain, from productive inputs to the historic increase in the cost of maritime freight,” he warned.

The situation has caused a sharp increase in prices, especially in segments that operate with lower margins, such as high technology, furniture, automobiles, power tools, sound equipment and microwaves.

With information from EFE.