The GBR Latin America Petrochemical and Chemicals Annual Report 2024, produced by Global Business Reports (GBR) in collaboration with the Latin American Petrochemical and Chemical Association (APLA), provides an overview of the sector in the region, now that the impacts of the last major disruption—COVID-19—seem clearer and more diluted.
With contributions from key industry leaders such as Florencia Rodríguez (YPF Química), Matías Campodónico (Dow), Stefan Lepecki (Braskem), and Voyager Portal’s CEO Matthew Costello, this report takes a closer look at the emerging challenges and opportunities in the sector in the region.
The Current State of the Petrochemical Industry Market in Latin America
The petrochemical market in Latin America is at an inflection point. While the dominant resources lie in production capacity and potential nearshoring opportunities in nations such as Brazil, Argentina, and Mexico, the region is also grappling with challenges such as global petrochemical oversupply, economic instability, and heightened environmental concerns. As highlighted in the APLA 2024 Annual Report, there are infrastructure building blocks and increasingly stringent sustainability regulations that companies are weighing their risks against.
Meanwhile, nearshoring is growing as a major trend as multinational corporations strive to bring manufacturing sites closer to target markets to minimize the risks posed by long supply chains. This underscores the benefits of Latin America becoming a primary hub for chemical and petrochemical activities. But the region urgently needs long-term investment policies, especially in logistics infrastructure, energy-efficient technology, and capital, to unlock the long-awaited production boom.
HOW VOYAGER ADDRESSES THESE MARKET CHALLENGES
Amid this context of uncertainty and complexity, tools like Voyager are becoming indispensable for petrochemical supply chain players. The report points out that logistics processes have become inefficient and operating costs are rising in areas where Voyager’s solutions represent a clear benefit.
By automating demurrage management, streamlining chartering workflows, and using AI to process data such as Statements of Facts (SoFs), Voyager enables companies to reduce operating costs, optimize their operations, and gain better control over their supply chains. As Matthew stated in the APLA 2024 Report, “Companies often miss opportunities to optimize their shipping operations by bundling cargo or combining contracts with other companies. The Voyager tool can suggest optimal grouping scenarios by consolidating shipments into fewer trips.”
“Companies often miss opportunities to optimize their shipping operations by bundling cargo or combining contracts with other companies. Voyager’s Demand Planning Module can suggest optimal grouping scenarios by consolidating shipments into fewer trips.”
As we can see from the report, missed opportunities for optimization are the things we can’t afford right now.
Staying one step ahead: opportunities in Latin America
With Latin America still on the path to becoming a major global petrochemical player, the outlook in the APLA 2024 Report shows that resilience and innovation are the determinants of success. Companies that are embracing digital transformation, adopting environmental efficiency strategies, and optimizing their logistics will have the best opportunity to make the most of regional nearshoring capacity and overcome industry obstacles.
Given the region’s potential to evolve into a global petrochemical hub, now is an opportune time for companies to invest in the tools and strategies essential for long-term success.
The APLA 2024 report acts as both a benchmark and a call to action: it emphasizes that while challenges are inevitable, opportunities remain abundant for those who innovate and adapt. Voyager is proud to support the industry in this effort by providing solutions that drive efficiency and unlock new possibilities in the market.