Why did Leschaco decide to implement a new regional structure at the beginning of 2020?

MS: Leschaco is growing on a global scale and, due to this growth, we needed a new structure for better customer orientation. We have implemented two new layers in the organization – the first being a regional set up, which divides the company into three regions: the Americas; EMEAI (Europe, Middle East and India); and APAC. On top of this we decided to include a matrix, which means we have deeper management through the different products we manage globally. This new structure is intended to give Leschaco’s board of directors more time to focus on strategy and how to take the company to the next level of growth.

Which of the company’s business lines have been performing well this year?

MS: Traditionally, Leschaco has always had a very strong ocean freight business, covering FCL (Full Container Loads) and LCL (Less than Container Loads), as well as an own tank container fleet which we operate by sea. All in all, we were very satisfied with the business development, despite the challenging environment caused by the pandemic. In 2020 we have focused on developing products which need further growth, like air freight and contract logistics. 4PL (fourth-party logistics) solutions and added value of all kind are also becoming increasingly relevant, as customers require end-to-end solution under one umbrella. Especially in Mexico, the cross-border business with the US is another key focus area where we are growing since many years.

To what extent has the pandemic impacted Leschaco’s operations in Mexico and the Americas?

MS: Covid caused a temporary decrease in volumes in most of the countries where Leschaco operates. Particularly between April and August, we noticed negative impacts in our key markets such as the US, Brazil and Mexico. However, from the beginning of Q4 2020 we have seen volumes recovering month by month, which has given us a positive outlook for 2021. As global trade recovered strongly in Q3, particularly the ocean freight sector is recently suffering from a lack of space, sailings, port congestion and container equipment availability, which is something that effects almost all major trades and countries.

FG: In Mexico, the impact peaked around July, not only due to the challenging economic scenario, but also because investments were being put on hold. Since October, things have started to rebound. Volatile freight rates, especially for products coming from Asia, are another challenge for our customers. Despite of these challenges, Mexico has been a solid market for Leschaco for many years. This has helped us to manage the crisis effectively.

How do you view Mexico’s potential for growth compared to the wider region?

FG: Even before Covid, Mexico was not in an easy macroeconomic situation, with no GDP growth in 2019. Therefore, it will be difficult for Mexico to pull itself out of this scenario in the short term. On the other hand, when it comes to Leschaco’s business, we see a lot of good opportunities to grow in Mexico’s chemical sector, but also in other industries. The new USMCA agreement should increase trade between Mexico, the US and Canada, and due to the sheer size of the country, there is always room for us to grow within the Mexican market.

Where would you like to see Leschaco by the end of 2021?

MS: I would expect that we have a vaccine that brings us back to a more normal environment. Overall, Leschaco has a positive outlook for 2021 due to the expected economic recovery, but also due to increased infrastructure, product focus and new salespeople we have brought on board. In 2021, Leschaco will invest in a new organization in Latin America, so we have a lot of projects in place to grow in the region.