Amid capacity reductions on the Trans-Pacific, South America is gaining prominence as a strategic focus for global air cargo. At the IATA CNS conference in Miami, attendees were told the shift comes with big changes for the air cargo sector and that carriers and freight forwarders “need to know how it will impact the industry”.

There has been a rapid increase in e-commerce activity in Latin America, driven in part by tariff changes. Lufthansa Cargo’s VP Americas, Stephanie Abeler, said shifting trade lanes are opening up new opportunities in South America. However, this shift in demand could create imbalances in global capacity, creating capacity gaps elsewhere as carrier pivot toward where there is demand. 

The influx of new players into South America could intensify competition for South and Latin American-based carriers. As reported by the Loadstar, it cited Brandon Fried, executie director of the Air Forwarders Assocation noting that infrastructure and cost pressures may intensify as more players enter the market.

Source: The Loadstar