The Logiztik Alliance Group is an international logistics and freight forwarding company headquartered in Quito, Ecuador, with offices in the main entry points of Colombia, the United States, the Netherlands and from China.
“Our most important markets are the United States, Europe and China. We try to localize on the product side, for example, flowers, fish, seafood and other products, mainly foodstuffs. perishable products. We have warehouses near the main airports of the countries where we (the exporter or the supplier will deliver the product to our facilities), then we consolidate the product process and manage the logistics process.”
“In our warehouses, we do some processes including quality checks, labeling, repackaging if necessary, logistics processing regarding documents. We coordinate by sea or air. We also keep track of the cargo until it reaches its final destination. In the United States and the Netherlands, we also have warehouses at the destination point. In other markets such as China, we work with local brokers”, explains Maria Ines Dominguez, marketing director of the Logiztik Alliance group.
“We offer logistics services tailored to specific products and markets. We offer our customers complementary services that differentiate the Logiztik Alliance Group from its competitors. By using technology at all stages of the logistics process, we provide technological solutions that help our customers operate safely and efficiently,” continues Maria.
“For several years, we have been ranked as the number one air freight agency in Ecuador. In 2021, we transported more than 90,000 tons of goods from Ecuador and Colombia to markets such as the United States, the Netherlands and China.We process and transport fresh and preserved flowers, fruits and fresh fish, among others.These products retain an incomparable quality due to the geographical conditions of the region in which they are grown.For this reason , they are attractive worldwide, especially for Asian consumers.Some of the products that stand out in this market are fruits such as pitahaya, passion fruit; flowers such as hypericum, gypsophila and roses; and many more”, according to Maria.
Products from Ecuador are increasingly finding their way to markets in the Far East
Trade effects due to the conflict between Russia and Ukraine
Besides being one of the biggest importers of flowers from Ecuador, Russia and Ukraine are also among the biggest buyers of fruits from Colombia and Ecuador such as bananas, pineapples, lawyers and others. As a result, the effects of the conflict on both industries have been significant.
The devaluation of the ruble has led to higher prices of goods, leading to stagnation in foreign capital flows, reducing consumer demand and disrupting normal market conditions.
Maria explains: “Despite the unstable environment, most of our clients were able to overcome the difficulties and regularize their operations. Others have had to take advantage of local markets and markets in other regions to export their products.
Ecuadorian star fruit yellow pitahaya, red dragon fruit and persimmon fruit for international markets
China as a future market
China is Ecuador’s second largest trading partner. A negotiated tariff reduction could provide an opportunity to expand trade in flowers and fresh produce. For example, the reduction of customs duties on certain products – such as flowers (10.6%), other fresh fruits (20.9%) – is expected to generate export earnings of over US$28 million , as well as the possibility of increasing the share of flower and fruit exports to China by introducing unique varieties previously unavailable in Chinese markets.
For the company, Latin America offers great growth opportunities, as the infrastructure and leadership are available to make the most of the trade boost that will be provided by the China-Ecuador FTA, which is expected to be finalized. by the end of this year.
Additionally, the decision to import pitahaya from Ecuador directly into mainland China is an opportunity that many growers have been anticipating. The company has been managing this product for several years and has the experience and temperature-controlled infrastructure to meet this new challenge. In preparation for this decision, we are aware of its implications, which will surely prove beneficial for both regions.
The challenges of doing business with China
Maria concludes, “Building business relationships in the Chinese market can be difficult due to geographic, cultural and language barriers, but these barriers are not insurmountable. These challenges are important for businesses to overcome because China will always be an influential player in global trade. . On the other hand, recent logistical distortions have raised concerns among companies dependent on trade with China, which could affect trade in the medium to long term. looks promising.”
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Maria Ines Dominguez
Logiztik Alliance Group