The air cargo market in SAM is expected to reach US$ 9.58 billion by 2028 from US$ 6.48 billion in 2021. The market is estimated to grow at a CAGR of 5.7% from 2021 to 2028.
Intelligent cool chain solutions are anticipated to provide the airlines with the ability to manage sensitive cargo throughout the entire course of the supply chain.New developments in climate control, as well as heating and cooling, will enable modern cool chain services to protect their clients’ cargo.
A good end-to-end intelligent cool chain solution will provide the IT tools required to make sure that temperature-sensitive cargo is handled appropriately and arrives at its destination on time.It should also mark a product as temperature-controlled and allow staff to configure specific requirements the shipment may be subject to.
In addition, next-generation platforms can also indicate what sustainable thermal packaging may be available for the product or commodity being shipped.It should also auto-stamp any temperature-sensitive cargo with the appropriate special handling code (SHC) to make sure that ground and ramp handling personnel are aware of the shipment’s handling requirements.
Based on an item’s SHC and special handling instructions, ground personnel can quickly identify sensitive cargo for special treatment. Several companies such as Accelya and Envirotainer, are engaged in developing cool chain solutions that will provide growth opportunities for the air cargo market in the near future.
In terms of services, the express segment is expected to be the fastest-growing during the forecast period.With the booming e-commerce sector and the increasing demand for quicker deliveries, companies are preferring express air cargo services.
As a result, air cargo vendors are highly focused on gaining an edge over their competitors by offering extra value-added services.The value-added features include ensuring faster availability at destination airports, flexible routing and schedules, shorter cut-off times than standard freight at airports, last-minute capacity access, and accelerated handling.
The express segment is expected to witness high year-on-year growth during the forecast period.
Air cargo demand in South America remains relatively less than the other regions, owing to challenging operating environments.The global aviation industry has been adversely affected by the pandemic, but South America has been hard hit.
In SAM, cargo demand remains subdued, with international CTKs down 22.2% year-on-year. The region’s slow cargo recovery seems to be impacted more by severe weakness in GDP and trade than by insufficient cargo capacity. Indeed, Latin America’s international CLF was below its maximum in September and also one of the weakest among the regions. As per the data by IATA, SAM carriers witnessed a decline of 20.5% in February in international cargo volumes compared to the 2019 period when demand was down the 17.5% on 2019 levels in January. Weakness within the South America markets continued to outweigh the full recovery in North–Central America routes, witnessing an increase of 10% compared to February 2019 levels. Hence, the pandemic has slightly impacted the air cargo market in the region.
The overall SAM air cargo market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.
The process also serves the purpose of obtaining an overview and forecast for the SAM air cargo market with respect to all the segments pertaining to the region.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic.
The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the SAM air cargo market. Cargolux; Cathay Pacific Airways Limited; DHL International GmbH (Deutsche Post DHL Group); FedEx Corporation; and United Parcel Service of America, Inc. are among the players operating in the market.