The end of the football World Cup has marked a turning point for airfreight between Latin America and North America, with capacity being pulled from the sector as US carriers shift focus to the summer transatlantic season. According to WorldACD data for 1-26 July, rates from Central and South America to North America climbed 7.3%, even as volumes contracted by 1.5%. This shift comes after airlines like Avianca had expanded services to US destinations in anticipation of World Cup travel, adding 42 weekly flights to its US network.
US carriers American, Delta, and United have been reducing passenger capacity from Latin America, particularly affecting services to Miami, a key gateway for air cargo between the regions. Federico Calvo, director of Intermodal Logistics, noted that this has created challenges for forwarders seeking US-bound lift from Argentina. The reduction in bellyhold capacity has not been matched by freighter services, leaving the market tight and pushing up rates.
Argentina's exports are feeling the impact, with northbound pricing from Buenos Aires' Ezeiza Airport now on par with Santiago. Chilean salmon exporters have increasingly used Buenos Aires as an alternative to Santiago, adding to the demand for US-bound capacity. Meanwhile, Argentina's own exports, including beef and pharmaceuticals, have benefited from US tariffs on Brazilian goods, which could affect up to 26% of Brazil's exports to the US.
A significant new factor is the surge in e-commerce from China to Argentina, which has led to direct freighter flights from China to Buenos Aires. These freighters, which often arrive full, offer aggressive outbound rates as they return to China, providing some relief for exporters. However, the overall market remains tight, and with Argentina's growing season approaching, demand for airfreight is expected to rise further.
For importers and exporters navigating this volatile market, working with a knowledgeable customs broker is essential to manage customs clearance and ensure smooth cross-border trade. As capacity shifts and rates fluctuate, staying informed about customs regulations and trade policies is crucial for those relying on airfreight between Latin America and North America.