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What’s your view of the region’s market prospects for 2025?
Looking ahead to 2025, the air cargo industry in Latin America and the Caribbean will be driven by international trade growth, supply chain diversification, digitalization, and e-commerce opportunities.
In recent years, we’ve seen more customers looking to markets such as Central America and Mexico as companies seek to diversify their global supply chains by growing their manufacturing networks. This shift offers tremendous growth potential to these countries as they become more integrated into the international market.
Although the extraordinary volumes of e-commerce growth that we saw during the pandemic have stabilized, it remains in an upward trend as younger consumers increasingly prefer online shopping. Cross-border e-commerce has become a vital component of the online retail landscape, with consumers in Latin America and beyond seeking products from other markets. In fact, Latin America and the Caribbean became one of the regions with the highest growth of e-commerce value in 2024, with Brazil and Argentina leading as some of the fastest-growing e-commerce markets globally. The air cargo industry is well-positioned to capitalize on this trend, helping to further facilitate the seamless flow of goods.
Embracing technology, particularly artificial intelligence (AI), is essential for the region to enhance customer experiences and compete in a digitized supply chain. AI adoption can improve shipment transparency, efficiency, and cost optimization while enabling predictive capabilities to address potential disruptions proactively.
Is the region ready to embrace air cargo’s digitalization?
The digitalization of air cargo in Latin America and the Caribbean is both a challenge and an opportunity. We believe technology will continue to be a major differentiator in the logistics industry, helping to make supply chains smart and therefore deliver a better customer experience.
Latin America is making notable strides in digital transformation, though it’s fair to say the region is not yet fully equipped for a complete digital overhaul. Although digital adoption is growing, there are still challenges, such as uneven internet access, gaps in digital literacy, and regulatory hurdles that must be addressed.
However, there are reasons to be optimistic as some countries are making remarkable advances in digital solutions, especially within the financial sector, which indicates that the region is well on its way to greater digital maturity.
IATA is also a great partner in pushing forward digitalization within the air cargo supply chain, which includes working with government authorities so that agencies participating in import and export processes also take steps towards digitalization to streamline clearance of shipments, which can reduce transit times and costs.
How do you adapt to the different conditions in the region?
We are dedicated to ensuring that packages reach every corner of Latin America and the Caribbean, including the most remote and rural areas where traditional roads might not exist. In these regions, we innovate by leveraging various modes of transportation. One example of this has been using barges in Brazil to navigate challenging terrains and reach remote areas in the Amazon rainforest.
This commitment is part of our broader effort to connect communities, no matter how isolated, and to deliver essential goods to those who rely on us.
Additionally, we focus on fostering collaboration between public and private sectors, stimulating local economies, and reinvesting in infrastructure across the regions we serve. By working together with local governments and businesses, we contribute to the economic growth and development of the communities we reach. For example, in Latin America and the Caribbean, FedEx contributed 0.8% of the net economic output in the transportation, storage, and communication sectors, and an indirect economic impact of $1.2 billion to the region’s economy in FY24.
Can we improve the infrastructure for air cargo? Is it still relegated to the airport periphery?
To improve air cargo infrastructure, collaboration between logistics operators, airports and public institutions is essential.
And we must also think about last-mile delivery. When shipments arrive at an airport, they are transferred to vans and trucks, who then deliver them to their destination. As such, adequate infrastructure across package processing facilities and roads is essential for the air cargo industry to function.
For some shipments, the route to their destination is straightforward. However, products in such industries as pharmaceuticals and medical supplies require specialized care, highlighting the importance of dedicated infrastructure. This includes temperature-controlled storage and transportation, advanced technology for rigorous monitoring and safety compliance, and efficient handling processes to preserve product integrity.
As mentioned above, the way to improve infrastructure is through close collaboration between the public and private sector to understand the challenges and work together towards solutions.
FedEx is heavily involved in diversity. How important is it to encourage more women into air cargo and what progress do we see in the region?
At FedEx, diversity, equity, inclusion, and opportunity (DEI&O) are integral to building a workplace where everyone is treated fairly and has the opportunity to thrive. This commitment drives not only how we recruit but also how we engage and retain talent through continuous support, feedback, and development opportunities.
In an industry traditionally dominated by men, we are focused on making gender parity a reality. Globally, 33% of FedEx employees and 27% of management are women, and our board is 36% female.
FedEx fosters a supportive environment for women to thrive through various initiatives globally and in Latin America. Team members have access to employee networks and affinity groups that promote diversity, equity, inclusion, and community building across operating companies.
Our gender equity committee, for example, drives initiatives that encourage dialogue and awareness, including expert-led webinars and activities that reinforce a culture of inclusion and equity.
Additionally, FedEx equips women with the tools to succeed in the logistics industry through leadership workshops, skills development seminars, and executive training programs, empowering them to advance into leadership roles within the organization.
By championing diversity and increasing the representation of women in air cargo, we are not only driving progress in the logistics industry but also building stronger teams and a brighter future for all.
Can you make regional operations more sustainable and how can you get enough sustainable aviation fuel (SAF) without any production plants in Latin America?
Sustainability is a cornerstone of our strategy at FedEx. We are committed to minimizing environmental impact while driving economic growth, with a goal of achieving carbon-neutral operations by 2040.
At FedEx, we are constantly exploring new avenues to acquire sustainable aviation fuels, partnering with our trade associations to advocate for policies and incentives that support the scaling up of SAF in the United States and abroad, and working to comply with different jurisdictions’ SAF requirements.
However, SAF is only a partial solution for addressing the challenge of aircraft emissions. The emissions intensity of different feedstocks varies greatly, and currently all SAF must be blended with at least 50% traditional jet fuel for use. Therefore, it is important to consider additional approaches to reduce emissions in aviation, including fuel conservation and fleet modernization.
To complement operational decarbonization efforts, we know our industry will also need to see durable, high-quality, and measurable carbon removal techniques available in the market. That’s why FedEx helped establish the Yale Center for Natural Carbon Capture, which is researching carbon removal solutions based on the Earth’s natural processes with the potential for long-term carbon storage.
Conserving fuel is a key strategy for progress. It lowers costs, improves fuel efficiency, and reduces emissions intensity. At FedEx, the modernization effort involves replacing older aircraft with more fuel-efficient models, thereby reducing greenhouse gas emissions, air pollution, and local noise.
In the region, we have modernized our fleet for certain routes across markets in Central America, the Caribbean, and Mexico, with aircraft such as the ATR 72-600F, which have already helped reduce emissions while enhancing operational reliability.
We have also retired our MD-11 aircraft across several routes including our Memphis–Guadalajara–Memphis route in Mexico. This aircraft was replaced by a Boeing 767/300 that offers better fuel efficiency, advanced technology for cargo security, and electric doors, making it both operationally reliable and better for the environment.
There are other steps that we have taken to support our sustainability goal that go beyond air cargo operations, including the incorporation of electric vehicles and e-bikes in our ground operations in the region.
Are there any other air cargo-related trends/challenges/opportunities in the region currently under the radar?
Latin America and the Caribbean holds enormous promise for the air cargo industry as the world continues to become more globalized and interconnected. With the growth of e-commerce, we are seeing many small businesses that are looking to take their operations globally.
As such, infrastructure investments and market expansions are key trends. For example, the recent launch of new direct flights connecting key destinations in South America and Central America to Miami serves as a clear example of how FedEx is responding to the growing demand for efficient, reliable logistics solutions. These flights not only enhance connectivity for industries like floriculture, manufacturing, and textiles but also demonstrate a commitment to adapting its network to meet evolving market trends and customer needs.
Additionally, the region is home to industries that export temperature-sensitive products that have strong international demand, such as healthcare and pharmaceuticals.
FedEx is ready to service these industries by continuing to invest in technology and infrastructure. In 2021, we completed a major expansion of our air cargo hub in Miami, which included a new 70,000 ft2 cold chain facility, the largest in the FedEx global network, and in 2022 we inaugurated a state-of the art temperature-controlled room in Puerto Rico, to service the Caribbean market.
Additionally, FedEx has certified their SenseAware ID monitoring devices in most countries in the region, which creates opportunities for FedEx customers to reimagine their supply chain through real-time updates on a package’s location within the FedEx network.
What skillset does a modern air cargo leader need?
To thrive in the fast-paced air cargo industry, leaders must balance technical expertise, strategic vision, and interpersonal skills. Embracing innovation, fostering a culture of new ideas, and proactively addressing future challenges are key to success.
Effective leaders excel at managing diverse, global teams. Emotional intelligence and clear communication are vital for inspiring and motivating individuals from various cultural backgrounds, ensuring everyone feels valued.
Strategic foresight is equally important. Anticipating industry shifts, adapting quickly, and leveraging opportunities—like the growth of e-commerce and evolving consumer preferences—allow leaders to turn challenges into advantages.
Leaders in the industry must also be their top advocates. Engagement with government authorities and institutions to collaborate on how to improve the operating environment is fundamental to address current challenges and generate new opportunities.
Finally, innovation drives progress. By championing digital transformation, adopting AI and robotics, and implementing sustainable practices, leaders build resilient organizations poised for long-term success.
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