The global trade landscape is undergoing a radical transformation, and the route from Asia to Latin America is at the heart of this transformation. Leading shipping companies such as Ocean Network Express (ONE) and Evergreen Line are actively increasing the volume of the trade route to meet growing manufacturing demand in Mexico and elsewhere.
Singapore-headquartered ONE is the first to deploy larger, more advanced container ships to service this high-demand trade route. The company announced the deployment of 13,828-TEU S-class container ships, a significant increase from the 8,900-TEU ships currently in operation. The decision is positive that total traffic on the West Coast of Asia - South America (WCSA) route has doubled in the past three years to more than 200 million TEUs in the first quarter of 2025.
At the same time, Evergreen is also readjusting its flight schedules to accommodate the market's growing demand for transportation capabilities. These expansions reflect the growing importance of Latin America as a key hub for global manufacturing.
The main driver of this route's momentum growth came from the rapid expansion of Asian manufacturers in the Lamai market. Chinese and Korean companies in particular are accelerating their investments in Mexico and other South American markets to take advantage of supply chain diversification trends and move closer to the North American consumer market.
The new ONE route will connect major Asian ports such as Busan, Shanghai, and Ningbo, with direct transportation to key Ramey hub ports such as Ensenada, Manzanillo, Buenaventura, Guayaquil and Kayao. This not only improves freight transport capacity, but also provides more efficient solutions for cold chain freight to support fresh trade in meat, seafood and fruit.
Despite high demand, the trade route has faced recent price volatility challenges. According to Peter Sand, chief analyst at Xeneta, contract shipping rates from China to WCSA in February 2025 had fallen to about $2,700/FEU, down from nearly $4,000 /FEU six months ago. However, the trend of long-term trade growth remains clear as China's investment in Latin America continues to grow.
Changes in geopolitics and the economic environment show that this is not just a short-term response, but part of a strategic reshaping of the global supply chain. The long-term development prospects of the Asia-Latin America trade route are worthy of concern as China further invests in overseas manufacturing and deepens its trade relationship with Mexico.
The introduction of the next generation of large container ships, the expansion of the network of shipping services, and the strategic investment in refrigerated cargo capabilities all demonstrate the long-term planning of the major shipping companies for this trade route. As manufacturing investment patterns change and global trade dynamics evolve, the future development of this supply chain is critical.
For logistics suppliers, manufacturers and trade analysts, the key message is clear: the supply chain from Asia to Latin America is rapidly changing, and mastering this trend will be key to capturing new opportunities in the global market. 📦🌎
Source: https://www.joc.com/article/carriers-boost-tonnage-on-asia-wcsa-to-meet-growing-manufacturing-demand-5950892
