Regional Pulse: Latin America sees recovery, export growth

Cargo capacity in Latin America is seeing steady recovery after being hit hard in 2020 due to COVID-19-related restrictions. The region is now experiencing an increase in belly capacity and the return of freighter flights, modeling a growing appetite for air cargo. Carriers reinforce services IAG Cargo announced three routes to resume between Europe and Latin America, adding Barcelona (BCN) and Santiago (SCL) four times per week and Dublin (DUB) and Miami (MIA) three times per week, as of Oct. 31. Starting in November, the carrier began three-times-weekly service from Madrid (MAD) to Caracas (CCS) and Rio de Janeiro (GIG) using an A350 and A330-200, respectively, according to a Nov. 3 release. Perishable and food exports drive economies in Venezuela and Brazil, Rodrigo Casal, regional commercial manager for Latin America at IAG Cargo, said in the release. [caption id="attachment_57132513" align="alignright" width="361"] Photo / Avianca Cargo[/caption] “When it comes to transporting perishables, air cargo plays a vital role, ensuring products arrive on supermarket shelves in the same condition as harvest,” he noted. Atlas Air and Cainiao launched freighter flights between Hong Kong (HKG) and Bogota (BOG) for the winter season as well, capitalizing on e-commerce and perishable demand from Asia Pacific. Service from China to Brazil and Chile was atypical before 2020, Mas Chief Executive Luis Sierra said recently at Cargo Facts Symposium 2022, hosted by Air Cargo World’s sister publication, Cargo Facts . Now, there’s an opportunity for direct exports from the Latin American market, he added. Colombia-based Avianca Cargo demonstrated its commitment to perishable shipments through its MIA hub, receiving the International Air Transport Association’s (IATA) CEIV Fresh Certification in October. Avianca Cargo also digitalized its booking processes, adding its capacity to the CargoAi, WebCargo and cargo.one platforms on Nov. 8, and increasing the region’s available capacity online while strengthening Avianca’s position as “one of the leader carriers in the region,” Avianca Cargo Chief Executive Gabriel Olivia said in a release. Meanwhile, AeroMexico signed on to utilize Jettainer’s ULD management system on Nov. 8, a new chapter in Jettainer’s growth into the Americas and AeroMexico’s focus on cargo, according to a Nov. 8 press conference at The International Air Cargo Association’s (TIACA) air cargo forum. “The Americas itself is growing very fast; the forecast for the next coming years is pretty bullish, especially in Latin America,” Shailendra Kothari, managing director for Jettainer Americas, said during the event. Kothari also pointed to many airlines coming out of a Chapter 11-driven reorganization in the region. Airfreight recovery Cargo moved by Latin American carriers make up about 2.2% of the world’s total cargo traffic market by cargo tonne kilometers (CTKS), according to the International Air Transport Association’s (IATA) data for September . However, the region has grown its share tremendously in the past year, seeing a 10.8% year-over-year increase in volumes between September 2021 and September 2022, the strongest regional performance that month, IATA reported. Latin American airlines “have shown optimism by introducing new services and capacity, and in some cases investing in additional aircraft for air cargo in the coming months,” according to the IATA report. E-commerce is driving airfreight growth in the region as well, with more carriers utilizing narrowbody freighters for regional demand. Boeing’s recently released World Air Cargo Forecast for 2022-2041 predicts that traffic between Europe and Latin America will grow 3.9% annually, and traffic from Latin America to North America will increase 2.3% each year. Join Air Cargo World for our next webinar, “Dangerous goods in focus: Shoring up air cargo logistics,” on Tuesday, Nov. 15, at 11 a.m. ET. Click here for more information and to register.

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