Resource information
Air cargo origin destination flows in
the Latin America and the Caribbean (LAC) region are heavily
concentrated in the largest economies of South America and
Mexico. With 32.7 percent of the airfreight moved to, from,
and within the region, Brazil is the largest cargo market,
followed by Colombia and Mexico, with 17.9 percent and 16.0
percent, respectively. The relatively small size of the air
cargo market in LAC can be explained by: (i) low levels of
demand for air cargo services (supply responds adequately to
a low demand for air cargo services in/from LAC), or (ii)
restrictions to a properly functioning market that impede
the air cargo market to reach its full potential. The
analysis carried out for the preparation of this paper
indicates that the low levels of demand is the most
reasonable explanation for the small size of the LAC air
cargo market. There is room to improve some regulations
which would make the air cargo market work more efficiently
and probably at lower costs, but the size and diversity of
the market will not significantly change as a result.
Airport infrastructure quality fairs well overall, although
some isolated issues exist in certain airports in LAC.
Infrastructure limitations were evaluated through a survey
conducted by an association of LAC airlines (ALTA). The
results of the survey show that even the worst rated
airports received an acceptable score in absolute terms.
Policies aimed at reducing operating costs and related to
soft constraints should also be implemented paperless
customs procedures, improved security in airport premises
and streamlining of custom inspection processes.
