Market Trends of Latin America Air Freight Industry
Growth of E-commerce Increases The Transport Service
As per industry experts, cross-border e-commerce is one of the significant opportunities for logistics providers due to the lower density of physical retail space, limited product availability, high penetration of smartphones, and purchase savings throughout the region. The industry continuously innovates to leverage the latest technologies and develop fraud protection solutions and authentication technologies that allow vital players, merchants, and banks to identify online shoppers by leveraging solutions such as biometric data for identity authentication. Several factors are behind this growth, the most important being the large numbers of millennials making purchases and the massive proliferation of smartphones.
In Latin America, social commerce is starting to overtake e-commerce. More than half of the Latin American shoppers polled in Brazil, Colombia, and Mexico engaged in social commerce. Comparing social commerce to traditional e-commerce, such as official corporate websites or marketplace websites like Amazon, Rappi, or MercadoLibre, the latter is gaining ground in Latin America.
More than 40% of customers from Brazil, Colombia, and Mexico cited the increased selection of payment options as a critical advantage of social commerce, as per experts. Nearly one-third of social commerce transactions in Argentina, Colombia, and Mexico involved currency coupons from convenience stores. It demonstrates that, besides relying on bank transfers, cards, and PayPal, even tech-savvy social media users favor cash as their preferred payment option. In 2023, compared to September 2022, the cargo volume increased by 2.3% for South American carriers. Compared to the previous month, this was a significant decrease in performance by 6.2%. In September 2023, capacity increased by 14.4% compared with the corresponding month in 2022.
Brazil Evolving As An Important Market For The Growth In The Air Freight Industry
Brazil's assistance of air cargo through its customs and border regulations ranked 52nd in the E-freight Friendliness Index (EFFI) globally in 2022. The air cargo transportation market has grown considerably in the country due to its various benefits, such as incredible speed and safety in the movement of products inside and outside the country.
The United States is Brazil's second-largest trading partner due to a solid commercial relationship and a commitment to joint prosperity. The complexity of domestic legislation and tax rules frequently makes it difficult for exporters despite the high local demand for U.S. brands and products. To achieve export success in Brazil, it is therefore essential to have an in-depth knowledge of local market trends and regulations. Brazil exported goods worth USD 39,122 million and imported goods worth USD 44,808 million in 2023 from the US.
One of the critical advantages of air freight is its dependability. Even though weather conditions can affect flight schedules, the availability of daily flights makes it simple to board the following trip. Consolidating shipments might be assisted by a knowledgeable air freight forwarding business. Combining airport terminal pickup, customs brokerage, cargo delivery, and affordable air carrier rates can help simplify logistics administration. Vendors can then concentrate more on expedited shipping in this fashion.
