Chapman Freeborn, Maersk, Avianca to invest in Latin America for cargo

LATIN America is emerging as a bright spot for the air and sea freight industries provided nations invest in infrastructure and develop favourable regulatory policies, according to the three panellists at Air and Sea Cargo Americas in Miami.

"There's a lot of potential in Latin America, and we see it already now," said Chapman Freeborn cargo chief Reto Hunziker, reported Atlanta area Air Cargo World. "Intra-country traffic offers Latin America's biggest potential, including intra-Brazil."



Maersk's Florida man Donald Francey said the expanded Panama Canal and recent trade agreements between Chile, Colombia and the US will create growth opportunities in Latin America for the sea freight market.



But regulatory issues in Latin America are seen as a major hurdle. "We have some things to do in our countries; it is not open skies all over South America," said Avianca Cargo vice president Victor Mejia. "There is a lot of pressure for increase in trade that will force more countries to become more open."



With regards to air freight, Mr Hunziker believes there will always be a need for freighters, even as increasing cargo volumes are carried in the bellyholds of passenger aircraft.



"I am convinced there will be a need and a demand in the future on selected lanes," Mr Hunziker said. "We think some smaller carriers will disappear. If not specialise in a niche, they will be too small to play against the big ones."



All three panellists held optimistic views for 2014. "We share a lot of the same pains, and oversupply is not unique to either [the air or sea] segment," Mr Francey said. "It looks like there is some momentum building. The macroeconomic reports we are seeing are encouraging for 2014."



Chapman Freeborn also shares this positive sentiment about Latin America, and plans to invest further in the region. "It's one of our priorities for the future," said Mr Hunziker.



Avianca Cargo has been investing in its fleet and cargo infrastructure as Mr Mejia pointed out that the bigger countries in South America will continue to see a middle class develop, thereby boosting demand for consumer goods.