AIR CARG O WEEK


THE AMERICAS F


REGIONAL OPPORTUNITY AND CHALLENGE


BY Edward HARDY C 16


“We are seeing emerging trade dynamics across the Americas that align with the shifting geopolitical and economic landscape.”


anada’s strategic position between North and South America, coupled with its established trade ties to Central America and the Caribbean, is driving new patterns in cargo flow. From consolidating fragmented Latin American markets into Canadian gateways, to adapting to seasonal swings


in agricultural and consumer goods demand, operators are rethinking how capacity is deployed. Airfreight hubs in cities such as Toronto, Calgary, and Montréal are evolving beyond domestic roles to become vital connectors between southern producers, northern consumers, and transatlantic markets. These changes are happening against a backdrop of infrastructure


limitations in parts of Latin America, regulatory discrepancies across borders, and heightened expectations for shipment speed, visibility, and reliability. In response, Canadian operators are leaning on digital tools, hub-and-spoke models, and partnerships that extend reach without adding costly dedicated freighters.


Geopolitical shift Trade patterns between Canada, Central America, and the Caribbean are being reshaped by political and economic developments, creating both opportunity and operational complexity. “We are seeing emerging trade dynamics across the Americas that align with the shifting geopolitical and economic landscape,” Julius Mooney, Director of Commercial at WestJet Cargo, stated. “Canada’s strong trade relationships, especially with Cuba where we are its fourth-largest


trading partner, have


prompted us to enhance cargo connectivity in these corridors.” Matching capacity with demand hotspots has been key. The integration


of additional aircraft into bellyhold operations has allowed for expanded lift into underserved markets without relying heavily on freighters. “By leveraging our bellyhold network… we are actively supporting these new trade flows with increased frequency and capacity where demand is strongest Mooney explained. Infrastructure fragmentation in Central and South America remains


a significant hurdle, but flexibility in network design can provide an edge. Canadian hubs, particularly Calgary, have been instrumental in overcoming these challenges. “Our Quick Ramp Transfer system enables rapid domestic movement—even within 30 minutes,” Mooney noted. “That allows us to consolidate from smaller markets and keep freight flowing despite infrastructure bottlenecks.” Customs discrepancies across jurisdictions add another operational


layer. Outsourcing compliance to specialists, such as Total Cargo Expertise (TCE), has proven an effective strategy. “They manage all our


international customs reporting across multiple systems and


jurisdictions Mooney said. “This has resulted in reduced delays, better compliance, and significantly fewer fines—ensuring smoother cross- border movement and faster delivery times.”


Seasonal swings and specialised cargo North-south trade is expanding, particularly between Canada, Mexico, and the Caribbean. New routes and extended year-round services are helping to meet rising demand, particularly in the winter months when Latin American agricultural exports peak. “The growing demand for Latin


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American exports during the winter season has also prompted us to increase frequencies to high-demand destinations,” Mooney said. This surge is closely tied to the rise in temperature-sensitive logistics.


“We are investing in specialised capabilities for temperature-sensitive goods,” Mooney explained. Partnerships with international carriers have enabled Canadian operators to move pharmaceuticals and perishables efficiently from North to South America, and onwards to Europe. Digital tools like SmartKargo and CargoAi give customers real-time tracking and capacity visibility, increasingly expected for high-value shipments. e-commerce is also reshaping domestic and regional cargo strategies.


“It is a major driver of our cargo strategy, especially for time-sensitive domestic shipments,” Mooney noted. Priority uplift services have been introduced to guarantee space and reduce cut-off times on routes where capacity is tight. Quick Ramp Transfer services enable rapid fulfilment, while new digital payment options are planned for 2025 to cater to domestic e-commerce customers. Seasonal demand swings across sectors such as agriculture,


electronics, and consumer goods are managed through dynamic capacity allocation. “Our digital tools, including dynamic capacity forecasting and load optimisation, provide operational flexibility to adjust quickly,” Mooney stated. This allows carriers to pivot resources rapidly, ensuring capacity matches demand fluctuations without leaving assets idle.


Hub strategy and intermodality Canadian hubs—most notably in Toronto, Calgary, and Montréal—are playing an increasingly strategic role in consolidating fragmented Latin American cargo flows. “The recent integration of additional aircraft and expanded service to multiple Cuban cities, Nicaragua, and Mexico allows us to gather volume from underserved markets and consolidate it


for onward distribution,” Mooney said. These hubs offer faster


throughput, consistent handling, and strong domestic and transatlantic links, reinforcing Canada’s position as a gateway for north-south trade. Intermodal


reach is extended through hub-and-spoke operations.


Calgary, for example, connects 65 percent of Canadians within a four- hour radius. “Quick Ramp Transfer capabilities allow us to act as a consolidator for smaller markets,” Mooney noted—especially valuable in winter, when road routes to northern Canada may be impassable. Capacity allocation between belly freight and dedicated freighters is


another ongoing discussion. Many operators are choosing to maximise bellyhold capacity, keeping only limited freighters for specialist or ad hoc routes. “We’ve pivoted away from dedicated freighters in favour of maximising our bellyhold capacity,” Mooney said. Aligning cargo schedules with passenger


flights and leveraging block space


agreements with partner airlines have proven effective in improving yield efficiency. Digital


transformation underpins much of this tools, are streamlining operations, evolution.


Investments in platforms like CargoAi and SmartKargo, as well as AI-driven internal


forecasting,


and customer engagement. “These investments not only streamline service delivery but also reduce costs and improve our sustainability profile—critical to remaining competitive across diverse markets in the Americas,” Mooney concluded.


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