Although Latin America (LatAm) plays a significant role in the global supply chain, it seems the regional delivery network is having a hard time keeping pace with 2022’s international supply and demand.
Hapag-Lloyd, the world’s fifth-largest container line, has stopped all bookings coming from LatAm, even though it accounted for almost a quarter of its volume in 2020. The company has claimed that the current congestion in major ports from the region is causing operational constraints that significantly affect their services.
The cost of freight shipping in LatAm could be one of the biggest roadblocks. According to recent data, the prices to ship a container from Asia to Panama surged from USD $4,000 to USD $15,000 as of June 2022. This issue is rooted in the very framework of LatAm’s delivery network and is causing growing pains in the region’s pursuit to play a noteworthy part in the world’s economy.
In order to help tackle these challenges, Cargamos, a leading Latin American next-day delivery platform, announced the appointment of Yohan Powell, a former strategic officer from McKinsey, as a Co-Founder and Chief Financial Officer.
Let’s take a look at how Cargamos is taking the steps to build a more efficient and sustainable delivery network in LatAm from the ground up.
The Financial Acumen Needed to Scale
Latin America is becoming one of the world’s fastest-growing regions for e-commerce and is projected to reach a market value of $160 billion dollars by 2025. With 13 million people across the region making an online transaction for the first time just last year, LatAm has needed to get the ground running rather quickly in order to keep up with delivery.
However, with a lack of shipping infrastructure on the ground floor, Cargamos is looking to patch the disparities with their end-to-end logistics platform that offers solutions across multiple markets. The Mexican startup offers the best next-day shipping solution in LatAm by connecting retailers and independent shipping carriers in the region to its unique last-mile infrastructure strategically located in high proximity nodes.
By bringing on Yohan Powell as Co-Founder and CFO, the tech company will be able to wield his financial savvy to scale. His financial strategic expertise spans more than 15 years, including a decade as an investment banker with Macquarie’s M&A and Private Equity divisions in London, Sydney, Paris, New York, and Mexico City, advising clients from all over the world on more than 50 transactions ranging in value from $100M to $2B.
Yohan, who holds an MSc. in Statistics and Mathematics from ENSAI, France, as well as an MSc. in Finance from Imperial College, England, started his duties as CFO for Cargamos in March, following his time on McKinsey in Mexico City where he helped startups and traditional Latin American companies to scale and capitalize on their existing assets to create successful ecosystems.
Yohan will help accelerate the company’s strategy and finance department, central functions, and oversee M&As and fundraising initiatives. “I am very excited to be joining Cargamos at this important time and during a vital stage in the company’s growth,” Powell said of the appointment. “I look forward to working with their team as we unlock the potential of eCommerce in Latin America.”
“I am thrilled that Yohan is joining the executive team of Cargamos. He brings extensive experience in leading operations and has successfully driven several substantial growth programs throughout his career,” said Ivan Ariza, Chief Executive Officer of Cargamos.
“Yohan’s experience in consulting and investment banking will provide our company the structure and best practices we need to support our ambitious growth strategy”.
Catalyzing Success in The LatAm Supply Chain
Prior to the pandemic, last-mile delivery services were already the biggest cost-driver in the global supply chain, comprising 53% of costs overall. The Mexican startup and its novelty last-mile delivery service has been able to reduce up to four days of traditional delivery times.
Cargamos is not only supporting the local logistics sector but also boosting small businesses that do not have the necessary equipment to ship on their own, helping patch the gaps in the Latin American delivery system. By offering pick-up and delivery programs tailored to the region, the company is helping build more sustainable and efficient delivery systems.
The startup’s work, together with the help of Yohan’s guidance, will help usher in a new era of success for the Latin American supply and demand network, and by extension, unlock new opportunities for the region that benefit both the local and international supply chains.
The efforts made by Cargamos will help to address the biggest pain points in LatAm delivery and turn them into benchmarks for success.
Disclosure: This article mentions a client of an Espacio portfolio company.