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”.

Peter Cerda, IATA’s regional VP for the Americas, pointed to the rapid rise of 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. Peter Penseel, president of Delta Cargo, cautioned that reallocating freighters away from lanes like Shanghai to Chicago to serve South America, could create capacity gaps elsewhere. He urged carriers and forwarders to closely monitor capacity.

The influx of new players into South America could intensify competition for South and Latin American-based carriers. Andrés Bianchi, CEO of Latam Cargo said demand shifts may be limited, but supply shifts could strain operations for regional carrires. Brandon Fried, executive director of the Air Forwarders Association, added that infrastructure and cost pressures may intensify as more players enter the market.

Source: The Loadstar