Ecuador focuses on China as a market for the future

Logiztik Alliance is an international logistics company headquartered in Quito (Ecuador) and has offices at key access points in Colombia, the United States, the Netherlands and China.

“Our main markets are the United States, Europe and China. We try to adapt our locations to our products, such as flowers, fish, shellfish and others, primarily fresh, raw materials. We have storage facilities in or near the major airports in the countries where we operate. The exporter or supplier uses our facilities, after which we consolidate the process and support the logistics. “

“In our own warehousing facilities, we take care of certain processes, including performing quality control, marking, repackaging and handling of the necessary documents. We ship by sea as well as by air freight. We monitor the cargo until it has reached its final destination in the United States and “In the Netherlands, we also have warehousing facilities at the destination. In other markets, such as China, we work with local intermediaries,” explains Maria Ines Dominguez, Marketing Director at Logiztik Alliance.

“We offer tailor-made logistics services tailored to specific products and markets. We also provide our customers with additional services that differentiate Logiztik Alliance from competitors. By using advanced technology at all stages of the logistics process, we are able to offer technological solutions there. enables our customers to work safely and efficiently, “continues Maria.

“For years, we have been recognized as the market leader in air freight in Ecuador. In 2021, we shipped over 90,000 tons of products from Ecuador and Colombia to markets such as the United States, the Netherlands and China. We process and ship fresh and processed flowers, Fresh products and fish Thanks be the conditions in the geographical regions where these products are grown and produced, they have an unsurpassed high quality, which is why they are in demand all over the world, especially in Asia.A few examples of these premium products are dragon fruit, passion fruit and flowers, such as hypericum, gypsophila and roses. “

Ecuadorian fruits and vegetables are increasingly finding their way to markets in the Far East

The impact of the war between Russia and Ukraine on trade
In addition to being one of the largest exporters of Ecuadorian flowers from Ecuador to Russia and Ukraine, these markets are also among the largest buyers of Ecuadorian and Colombian fruits, such as bananas, pineapples, avocados and more. The impact of the war on both sectors is therefore significant.

The devaluation of the ruble has pushed up product prices, leading to stagnation of foreign capital flows, weaker demand and disturbance of normal market conditions.

Maria explains: “Despite the volatile environment, most of our customers managed to overcome these challenges and get their operations back on track. Others had to focus on local markets or export to markets in other regions.”

Ecuadorian Carambola, Yellow Dragonfruit, Red Dragonfruit and Persimmons for international markets

China as the market of the future
China is Ecuador’s second most important trading partner. The negotiated rate cut could provide opportunities for further expansion of the trade in flowers and fruit and vegetables. For example, the reduction in tariffs on certain products, such as flowers (10.6%) and fruit (20.9%), is estimated to generate more than € 26.8 million in export earnings and create opportunities to increase exports of flowers. and fruit to China with unique varieties previously unavailable in the Chinese market.

Opportunity for further growth
Latin America offers the company good opportunities for further growth as this region has the infrastructure and leadership to make the most of the trade benefits offered by the China-Ecuador FTA, which is expected to be ratified by the end of this year.

In addition, the decision to export dragon fruit directly from Ecuador to China creates opportunities that many growers have long hoped for. The company has been working with this product for years and has the knowledge, experience and the right infrastructure to tackle this new challenge. “In preparation for this decision, we are exploring the possibilities, but we are confident that this decision will bring benefits to both regions.”

Challenges of doing business in China
Maria concludes, “Building business relationships in China can be challenging due to the geographical, cultural and linguistic barriers, although these obstacles are not insurmountable. However, it is important to overcome these barriers because China is always an influential player in world trade. On on the other hand, the recent logistical disruption has raised major concerns among companies dependent on trade with China, which could affect trade in the medium and long term.Due to the nature of their trade with China, China’s prospects for Ecuador and Colombia is promising. “

For more information:
Maria Ines Dominguez
Logistics Alliance Group

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