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The Chilean air freight transport market is expected to witness a CAGR of 5.1% during the forecast period of 2021-2026. The increase in the use of cold chain technology, robotics, automation systems, artificial intelligence (AI), big data, deep learning, the Internet of Things, and augmented and virtual reality in multiple operations is expected to promote the growth of the Chilean air freight transport market. Due to the global spread of the COVID-19 pandemic, the demand for the air freight industry has fallen sharply. Throughout 2020, Chile’s air freight volume was quite low. The economic crisis caused by the strict lockdown in the country has severely affected Chile’s air freight transport. In 2019, air freight transport for Chile was 1,232.4 million ton-km.
The advancement of air freight technology and the increased awareness of cargo operators of the possible benefits of the latest technology are expected to promote the growth of the Chilean air cargo market. Additionally, due to the increase in income population and globalization, the demand for goods and services has increased significantly. Airfreight companies are increasingly focusing on digitization to improve efficiency, reshaping the air freight transport market. Since capital investment in the air freight industry takes time to recover, manufacturers are focusing on improving efficiency and reducing operating costs to maintain profitability. The growth of foreign trade is likely to have a positive impact on Chile's air freight transport market. The country’s ideal geographic location offers great potential for countries, such as Europe, Asia, Southern countries, and Central America, which can be connected by air, sea, or land transportation.
Scope of the Report
Airfreight is a transportation mode of delivering fast-speed shipments via aircraft, mostly for longer distances. Chile air freight transport market report covers market insights, such as market dynamics, technological innovation and its impact, the impact of e-commerce growth on the market, industry attractiveness - Porter's five forces analysis, freight and logistics costs, and insights into intermodal freight. Additionally, the report provides company profiles to understand the competitive landscape of the market.
The Chilean air freight transport market is segmented by services (freight transport, cargo, mail, freight forwarding, and other value-added services) and destination (domestic and international).
|Other Value-added Services|
Key Market Trends
Growing Air Cargo Transport in the Country
The air transport sector has made a significant contribution to the Chilean economy. Compared with 2018, the number of air cargo tonnage transported per kilometer decreased by nearly 3.3% in 2019, while the capacity (in terms of available cargo tonnage per kilometer) increased by 2.1% in 2019. However, there has been an increase in exports in 2020. In January 2020, nearly 36,238 tons of cargo were transported on domestic and international flights, an increase of nearly 12.7% compared to the same period in 2019. Chile’s exports of red cherries and other fruits to other countries (such as China) have increased. This provides more opportunities for air cargo providers to enhance their services suitable for perishable demand. China accounted for nearly 90% of Chilean cherry exports in 2019, and by Q4 2019, exports reached nearly 210,000 metric tons.
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Chilean Exports Increased 8.5% in the First Month of 2021
Compared with the same month in 2020, Chile’s global trade volume in January 2021 increased by 4.2%, and exports increased by 8.5%. With an export value of USD 7.94 billion, China continues to be the main export destination market for Chile's national products, accounting for 47.1% of the market. Followed by the United States (11.8%) and Japan (9.1%), these three countries accounted for 68.0% of total Chile's national sales. The mining sector’s exports accounted for 56% of the country’s total sales at USD 4.44 billion, an increase of 33.3% compared to the same period last year. In the mining product basket, shipments of copper minerals and their concentrates are outstanding, accounting for 53.3% of the department’s total sales, an increase of 42.0% compared to the same period in 2020. Copper ranks second, with a participation rate of 37.3% in mining products. Likewise, it is important to mention the 59.5% growth shown by iron ore and its concentrates.
The Chilean air freight transport market is competitive and fragmented with the presence of international players. With the emergence of a large customer base from industries, such as food and beverage, pharmaceuticals, telecommunications, heavy industry, and other end-user verticals, the air freight industry has attracted huge investments. The country is considered to have great potential for both European and Spanish air freight logistics providers. There are multiple benefits for other countries to develop their business operations in Chile. Major players are UPS, FedEx, DHL, Agility Logistics Chile SA, and Avianca Holdings SA.
April 2021: UPS, together with its UPS Flight Forward subsidiary, planned to purchase electric Vertical Takeoff and Landing (eVTOL) aircraft from Beta Technologies (BETA) to augment its air service for select small and mid-size markets. These aircraft are likely to take off and land on the property at UPS facilities in a whisper-quiet fashion, reducing time-in-transit, vehicle emissions, and operating costs.
May 2021: Agility, a leading global logistics provider, held its Extraordinary General Assembly Meeting with a quorum of 75.8%. The company’s shareholders approved the item on the agenda, approving the sale agreement of Agility’s Global Integrated Logistics (GIL) business to DSV Panalpina AS. The acquisition may be an all-share transaction, and closing is expected in Q3 2021. Agility is likely to become the second-largest shareholder in DSV with an approximate 8% stake in the combined company.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Dynamics
4.3 Government Regulations and Initiatives
4.4 Supply Chain/Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.6 Technology Snapshot and Digital Trends
4.7 Spotlight on Key Commodities Transported by Air
4.8 Elaboration on Air Freight Rates
4.9 Insights into Key Ground Handling Equipment in Airports
4.10 Insights on Air Freight Carriers by Type (Belly Cargo and Freighter)
4.11 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods
4.12 Brief on Cold Chain Logistics in Air Cargo Sector
4.13 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Services
5.1.4 Other Value-added Services
5.2 By Destination
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.2 Company Profiles
6.2.4 Agility Logistics Chile SA
6.2.5 Avianca Holdings SA
6.2.6 Amerijet International Airlines
6.2.7 Blue Express SA
6.2.9 Aerovias DAP SA
6.2.10 JF Hillebrand Chile Limitada
6.2.11 Cargolux Airlines
6.2.12 JAS Forwarding Transportes International Ltd*
7. KEY VENDORS AND SUPPLIERS (AIRCRAFT MANUFACTURERS, TECHNOLOGY PROVIDERS, CARGO HANDLING EQUIPMENT MANUFACTURERS, ETC.,) IN AIR CARGO INDUSTRY
8. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Chile Air Freight Transport Market market is studied from 2017 - 2026.
What is the growth rate of Chile Air Freight Transport Market?
The Chile Air Freight Transport Market is growing at a CAGR of 5.1% over the next 5 years.
Who are the key players in Chile Air Freight Transport Market?
UPS, FedEx, DHL , Agility Logistics Chile SA, Avianca Holdings SA are the major companies operating in Chile Air Freight Transport Market.