AIR CARG O WEEK


WEEKLY NEWS


LATIN AMERICA’S AIRFREIGHT MARKET NAVIGATES MACROECONOMIC VOLATILITY


BY Edward HARDY


AIRFREIGHT demand in Latin America has remained resilient despite a turbulent economic backdrop over the past 24 months. Currency fluctuations, high inflation, and uneven growth have tested the region’s logistics networks, yet cargo volumes, particularly for time-sensitive and high-value goods, have shown remarkable strength. Analysts attribute much of this resilience to the rapid expansion of e-commerce, cross-border trade, and an ongoing reliance on quick delivery for critical shipments. Even amidst macroeconomic uncertainty, many markets have reported double-digit year-on-year growth in airfreight traffic, signalling structural robustness rather than short-lived cycles. “Over the past two years, Latin America has experienced a mix of currency


swings, inflation, and economic volatility, yet airfreight demand has remained consistently strong,” Rodrigo Hidalgo, VP of Bringer Air Cargo, explained. “A significant part of this growth comes from expanding e-commerce and


cross-border trade, as well as the continuing need to move high-value or time- sensitive goods quickly. In many markets, we are observing double-digit cargo growth year on year, reflecting both resilience and long-term opportunity.” The current airfreight market has also seen changes in pricing strategies


and contract structures. Spot rates fluctuate with short-term demand and macroeconomic shifts, while long-term contracts provide shippers with predictable costs. This hybrid approach has become more common, allowing businesses to balance flexibility with budget certainty, especially in markets where inflation and currency swings could otherwise disrupt supply chain planning. “Today’s pricing environment reflects a balance between spot rates and


long-term contracts,” Hidalgo noted. “Spot pricing offers flexibility but moves with market conditions, whereas contracts deliver stability and predictable budgeting. Many shippers are adopting a hybrid approach—securing core volumes under contract while relying on spot capacity for peaks or overflow. “This enables them to manage costs while maintaining operational flexibility.


It’s a strategy that has proven effective in volatile markets across the region. Balancing cost certainty against flexibility is key to sustaining growth.”


Structural growth outpaces cyclical factors Long-term structural shifts are driving most of the current airfreight growth in Latin America, surpassing the impact of short-term cyclical changes. Rapid e-commerce adoption in markets such as Brazil and Mexico has reshaped supply chains, generating consistent demand for air cargo services that goes beyond seasonal fluctuations. Other structural forces—including rising consumption, nearshoring trends, and new direct freighter connections from Asia—are further altering trade flows. While inventory adjustments and seasonal spikes still influence volumes, the underlying growth reflects a fundamental change in how goods are produced, shipped, and consumed in the region. “Airfreight growth in Latin America comes from both long-term structural


changes and short-term cycles, but the structural drivers are clearly leading the way,” Hidalgo said. “Rapid e-commerce expansion, especially in Brazil and Mexico, is reshaping supply chains and creating sustained demand for air cargo. “Other long-term factors such as rising consumption, nearshoring, and more


direct freighter connections from Asia are redefining trade lanes. Seasonal flows and short-term inventory shifts still affect volumes, but overall growth is clearly structural, reflecting deeper changes in how goods move across the region.” Capacity on major Latin American trade lanes has generally kept pace


with demand, though imbalances remain on intra-regional routes and niche international connections. Belly cargo on passenger aircraft continues to provide the bulk of global capacity, while dedicated freighters cater to urgent, oversized, or heavy shipments. Freighter growth, however, must be carefully managed due to fuel costs and yield pressures, with operators increasingly relying on conversions and strategic network partnerships rather than new aircraft alone. “Dedicated freighters remain essential for heavy, oversized, or urgent


shipments, while belly cargo on passenger aircraft still provides most of the capacity,” Hidalgo explained. “This balance allows us to match the right aircraft type to each shipment. While freighter capacity has expanded, growth must be carefully managed due to yield pressure and fuel costs. “Many operators are focusing on aircraft conversions and network


partnerships rather than relying solely on new aircraft. From our perspective, combining belly capacity with targeted freighter lift helps maintain competitive service while controlling costs. This approach ensures that the market remains resilient and efficient despite economic pressures.”


SPONSORS ALREADY INCLUDE: AIR CARG O WEEK 2026


WORLD AIR CARGO AWARDS


Airline of the Year – The Americas Category Sponsor 03


Zachary D. Oakley, A.A.E Executive Director


Chicago Rockford International Airport (RFD) is proud to sponsor the World Air Cargo Awards Airline of the Year – The Americas category.


RFD is ranked as the 13th largest U.S. airport for air cargo.


RFD is home to the second-largest UPS hub in North America, Amazon Air, Maersk Air Cargo, and continues to develop other major cargo opportunities.


We’re sponsoring this category because it recognizes the operational excellence, safety, and customer focus that keep supply chains moving. Congratulations to all nominees, and I look forward to celebrating the winner.


CONTACT US


To become a sponsor, or for further information, please contact us T: + 44 (0)1737 906107 E: sales@azurainternational.com


www.aircargoweek.com


16 MARCH 2026 ACW


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