b'OCTOBER 31 - NOVEMBER 20, 2022LATIN AMERICA TRADE 23Aviation in Latin America:(JAMcontinued from page 16) (SOLUTIONcontinued from page 18)the market last season centered around containers.view that for seasonal fruit a robust specialized fleet Summer is overnow what Heavy container arrivals came from the east, start- is very welcome. One should also note that someone ing with Peru and continued through the Chileanhas to pay for the party. As the container markets have Summer2022,highlyanticipatedbyairlines,season. A sustained bottleneck at the eastern arrivalmarginally cooled there has been an almost instant eventuallyarrived,demonstrating,andconfirm- ports led to delays in processing and release of con- movement of some of the outlier cargoes back to con-ing the positive trend in the industrys recovery tainer shipments. tainers. An equilibrium is needed. Its above our pay thanks to the lifted restrictions, open borders, andCoty continued, There have been many learn- grade to guess what that balance point should be.the higher capacity deployed by different operators.ings from ongoing transportation issues, so whileHolt noted, SeaTrade and Cool Carriers have However, this season the airplanes have also had towe do expect improvements in some areas, we alsoboth announced new building programs. The world fly through the turbulence caused by high fuel costs,anticipate new challenges, and our skilled team isin general - notably growers, shippers, all lines, and sharp depreciations in some countries of the region,ready to adapt.governments - should welcome and support addi-and disruptions in airports due to a lack of staff, allKopke feels the new cooler space under con- tional capacities as there are many factors that are adding to the capacity challenges, in order to meetstruction in the Delaware Valley is inadequate forbenefittedfromhavingarobustreeferfleet.Itis the sudden growth in passenger demand. upcoming demand.agile and can pivot quickly.Atthebeginningof2022,theoptimismwasAsked if this massive jam could happen again,In2022,asoceantraderecoveredfromthe high for the summer, owing to the rollout of vac- LeoHoltofHoltLogistics,GloucesterCity,NJ,COVIDpandemic,therewasariseinbreakbulk cination programs around the world, the lifting ofresponds: It could, but other factors are helping.cargo, Holt indicates. This is a move away from the flight restrictions, the opening of borders, and theManyoftheworkforceissuesthatplaguedtherivers move toward containerization for the past 20 recovery of air travel at the global level. Neverthe- supply chain since COVID have been at the sourceyears.Breakbulkcargoesaccommodateaflexible less, as commented in the IATAs last meeting, noofpicking,packing,origintransportationandatsupply chain, says Holt. Argentine pears and lemons, one expected such an abrupt change in the geopo- ports of entry throughout the world. It has been aas well as 17 breakbulk vessels bearing South African litical situation caused by the war in Ukraine anduniversal issue in all hemispheres. The good news iscitrus this year were among the leaders in breakbulk what this would mean for the industry, reflected inthat it is also subsiding. Therefore, the coming sea- cargo. Breakbulk fruit juice from the Far East and the rapid increase in fuel prices, which in June 2022sonal fruit surges into the United States should notMediterranean were new this year to the Delaware rose from 80 to 120 US dollars per barrel. be as affected. River system. Reefer ships also bore European frozen Theincreasedactivityoflow-costcarriersHolt added, Obviously if shippers determine tofoods and packaged products from the Far East. Holt (LLCs), especially in Latin America, continued toblast a market with massive volumes and have nei- doesnotseethisdevelopmentnecessarilybeinga help grow their market share, confirming passen- ther infrastructure nor firm programs contracted topermanent trend, but it does reinforce the strength of gers acceptance of this type of model due to thetake these volumes then the supply chain will expe- breakbulk carriers mantra: Fast, dedicated, direct. low-coststructureandreducedprices.However,riencedelays.Therefore,closecoordinationandIn the shipping world, breakbulk serves as a figura-the exposure to sales in domestic markets has putcooperation is crucial to a successful flow. tive sea anchor in these difficult currents, says Holt. high financial pressure on low-cost airlines, givenPOPGlobalAd2021 copy.pdf 1 8/29/22 7:49 PMthe depreciation observed in Colombia, Chile, and Peru, as well as high fuel prices. It was observed that several airlines managed to mitigate increased fuel prices and depreciation costs through ticket prices. The Port of Furthermore,newairlines,includingUltra, Arajet, Equiar, and Canada Jetlines were launchedPascagoulain several regions, ratifying the moment for setting into motion new operations that started during the pandemic,takingmarketopportunitiesforacost-efficient structure. Theres hope that they continue to move forward and create value in the market with new proposals for connectivity, service, as well as new routes to strengthen the current regional industry.s uMMErsE nDing W hatsn Ext ?Several questions remain for upcoming months, which should be left to strategists: how will COPA, Aeromxico, and Azul move in the region, and will we see LCC consolidation processes with the aim of adding synergies?It is clear that the present conversation betweenMexico Caribbeanairlines remains to be focused on profitability, effi-ciency, and cash flow generation. Gone are the days when priority was only given to market share as theCentral Americamain indicator; now the aim is to achieve the lowest CASK possible, the highest turnover, and network Cand cost optimization. M Forest ProductsThis new focus continues igniting the search for new and different operational models orY Wood Pelletsreplicates CMmodels that are successful in Europe, which can meet MY MetalsthedemandwithouthavingtoinvestinCAPEX. Today,wearefacedwithascenariothatrequires CYCMY Steel South Americagreater use of aircraft, quick turnarounds, and as few grounded aircraft as possible. For this reason, there K Bulk Cargois a need to implement buffers or fleet flexibilization systems, in the way that is done by airlines as impor- Project Cargotant as Lufthansa, which, through ACMI (Aircraft, Crew, Maintenance, and Insurance) or wet-lease, can increasetheircapacityduringsummerpeaks,thus reducing the need for airplanes in winter, optimizing CAPEXandoperationalcosts. Airlineslike Avion Express, operator of Airbus A320 family fleet, are positioned in this passenger market under ACMI as the leaders in the industry of such models. This means that the development of said capacities can continue inLatin America.Theinvitationisalsoissuedto regulators, civil aviation authorities, and ministries of transport, to enable them to continue developing new regulatory frameworks for pushing this industry forward for the benefit of better operational structures that are reflected in lower prices for passengers.This pause in todays path and the future thatMain Office - 228-762-4041lies before us clearly show the significance of theMiami Office - 305-254-3117airline industry and the importance of developing airport infrastructure in Latin American countries, accompaniedbythedevelopmentofnewregula-tions that adjust to new operational models that ben- PortofPascagoula.comefit passengers.'