Sunday, September 08, 2024
Looking to Latin America

Looking to Latin America

The strategic geographical position of Latin America facilitates the efficient movement of goods across continents. The region’s diverse economies – ranging from agriculture to manufacturing – generate substantial demand for airfreight services. 

Countries like Brazil, Mexico and Argentina are significant exporters of popular commodities, including agricultural products, minerals, and manufactured goods and consumer goods. The expansion of airports and logistics facilities within the region have improved the efficiency and capacity of cargo operations in recent times. 

“American Airlines Cargo has established a comprehensive network in the LATAM region, maximising the belly space of its passenger aircraft with cargo. American serves major cities in LATAM such as São Paulo, Mexico City, Buenos Aires and Santiago, connecting them to key destinations in North America, Europe and Asia,” Lorena Sandoval, Sales Director – Florida, Caribbean and Latin America at American Airlines Cargo, outlined.

“We transport a diverse range of cargo commodities into and out of the LATAM market, reflecting the region’s economic activities and trade patterns. Key imports into LATAM include electronics, machinery components, pharmaceuticals and consumer goods. These products are essential for supporting local manufacturing, infrastructure development, and consumer demand.

“On the export side, American Airlines Cargo carries a variety of commodities from LATAM to global markets. These include agricultural products (such as fruits, vegetables, and seafood), minerals, raw materials, textiles and high-value goods like electronics and medical equipment. The region’s agricultural exports are particularly significant, driven by favourable climatic conditions and increasing global demand for fresh produce.

Gateway to South America

Miami plays a critical role as a major cargo hub which offers multiple daily departures to key LATAM destinations. This frequency provides flexibility for shippers and ensures that goods can be transported quickly and reliably. 

The airport’s strong customs and border protection services facilitate the efficient processing of international shipments, reducing delays and enhancing supply chain reliability. American Airlines Cargo remains very focused on its operations across its entire network, but there is special attention on Miami International Airport (MIA) due to the volume of traffic that flow through it. “The key to American Airlines Cargo’s success in building a strong connected network lies in its strategic use of MIA as a primary gateway to South America. Miami’s proximity to LATAM and its role as a major cargo hub enables frequent and reliable service,” Sandoval stated.

“American Airlines Cargo’s extensive route network, which covers major cities in LATAM, ensures comprehensive coverage and convenient connections for our customers to move their cargo.” 

 Shifting shipments

The LATAM region has experienced steady economic growth, supported by increased activity, development, and rising demand. This has driven an uptick in trade volumes and a corresponding increase in airfreight services. Countries such as Brazil, Mexico, and Colombia have seen significant economic development, contributing to the region’s overall growth. 

American Airlines Cargo has responded to these trends in recent years by expanding nonstop, widebody flights from hubs like New York and Dallas to Brazil and Argentina, allowing them to capture a larger share of the growing market. Miami remains its biggest origin in the region, serving Buenos Aires, Rio de Janeiro, São Paulo and Santiago with widebody routes.    

“Over the years, there has been a move towards higher-value and more specialised cargo shipments, reflecting changes in LATAM’s economic landscape and global trade dynamics,” Sandoval explained.

“The growth of the pharmaceutical and electronics industries has increased the volume of temperature-sensitive and high-value goods transported by air. Additionally, the rise of e-commerce has driven demand for expedited shipping services and the transportation of consumer goods. Looking ahead, it’s likely these trends will continue with the growth of e-commerce driving the demand for airfreight services.”                                                            

Collaboration and competition

By collaborating with local airlines, American Airlines Cargo works to offer more comprehensive flight schedules and improved connectivity that can benefit cargo. Partnerships with airports and cargo handling companies enhance the efficiency of ground operations, ensuring that shipments are processed quickly and reliably. In addition, they also work closely with local governments and trade associations to support economic development and promote trade initiatives. 

“These collaborations help to create a favourable business environment, facilitate regulatory compliance, drive investment in infrastructure and logistics capabilities and foster an ecosystem that promotes trade and economic development,” Sandoval highlighted.

With this positioning, despite rising competition, American Airlines Cargo feels confident in what it offers to customers – in particular, specialised products and services that match the verticals where they are seeing growth, like pharmaceuticals, electronics, and perishables. 

The carrier has also invested in digital transformation, including the development of more user-friendly tools for booking and tracking shipments on its aacargo.com platform, which enhances the customer experience and improves operational efficiency. 

“Our network enables us to seamlessly connect freight from Europe, Asia Pacific, and North American regions to and from Latin America, which is a key advantage for us. Latin America remains a really important area of focus for American Airlines Cargo, and we are continuously adapting to market trends and customer needs,” Sandoval continued.

“Overall, American Airlines Cargo’s vision for the future involves leveraging the strength of our network and operations, embracing digital innovation, and fostering strong relationships within the LATAM region to drive continued success and support the growth of the airfreight industry in the region.”

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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