Article by Arthur Drummond and Luís Otávio Modolo
It is widely known that cargo transport by air in Brazil represents a considerably lower percentage than other modes. In a survey carried out by ILOS in 2022, it was observed that this means represents only 0,05% of the total number of TKUs handled, while road transport corresponds to more than 60%.
The low representation of this modal in the transport matrix is due to its main characteristics. In general, its use is directed to specific occasions and products, mainly due to the high cost and limited capacity. On the other hand, the speed of delivery, the possibility of serving more remote regions, such as Manaus, and the security offered by this means of transport are factors that favor its use.
When approaching the convenience of this type of freight, two main occasions stand out. The first is when it comes to a product with high added value, such as jewelry and electronic components, where freight represents a less significant percentage of the product's value and security is fundamental. Another circumstance is when there is an urgent need for receipt, requiring faster shipping, as was the case with vaccines during the Covid-19 pandemic. In addition to the products already mentioned, components from the textile industry, medicines, car parts and perishable products are others that are used in Brazil.
Overview of air cargo movement in Brazil
According to data from ANAC (National Civil Aviation Agency), in 2022 Brazil achieved its historical record for the volume of cargo handled by air, reaching the value of 1.421 million tons, with approximately 70% of this volume being composed of international payloads. International cargoes are mainly responsible for the record number, which represents a growth of 12% compared to 2012.
Figure 1: Historical series of the volume transported by air in Brazil, from 2012 to 2022.
Source: ANAC. ILOS analyses.
The year 2023, in turn, started off low, between January and February 205 million tons were transported. In 2022, this number was already 219 million, which represents a reduction of 6,2%. The main factor responsible for the drop is the transport of international paid cargo, which presented a reduction of 9,2%, while domestic (domestic) paid cargo and mail increased by 0,7% and 4,3%, respectively.
Figure 2: Evolution of the volume transported by the Brazilian airline sector between January and February 2022 and 2023 by type of cargo.
Source: ANAC. ILOS analyses.
Among the largest domestic cargo transport routes via air in Brazil, the four main ones involve Manaus airport (SBEG) and airports in the state of São Paulo – Guarulhos (SBGR) and Campinas (SBKP). The high air flow between these two regions is due to the fact that Manaus is a remote region, with little road structure, but which manufactures products with high added value through the Manaus Free Trade Zone. The state of São Paulo is the main economic center of the country, therefore it consumes a large part of the technologies that are produced in the Free Zone.
Table 1: Routes with the highest volume transported by air between March 2022 and February 2023.
Source: ANAC. ILOS analyses.
Future perspectives
Transport by air means great differentiation in terms of delivery speed. Allied to this, it is not new that consumers are looking for increasingly faster freight rates and terms such as “Same day Delivery” and “Frete Expresso” are constantly seen. In this sense, reference companies in the market, both national and international, have sought differentiation in shipping speed, as is the case with Amazon and Mercado Livre.
In a publication by Valor Econômico in March 2022, it was discussed that the number of daily flights by Amazon Air (Amazon's cargo airline) grew from 85 in 2020 to 187 in 2022, which represents a 102% increase in pandemic period. However, the number of trips with exclusive delivery of Amazon products may be even greater, given the existence of outsourcing deliveries from partners.
In smaller proportions than the American multinational, Mercado Livre announced in 2020, according to a report by UOL, the creation of an airline (MELI AIR) that would have 4 planes operated by different companies, aiming to speed up deliveries in the country. In another report, this time from InfoMoney in 2022, it was announced that the company received the first of 6 cargo planes, which will be used to reduce delivery times in the North and Northeast regions of the country. The initial objective is to reduce the delivery time in the capitals to just 1 day, something very representative when observing the evolution of this time in the regions over the years.
Figure 3: Evolution of Free Market Delivery Time in the North and Northeast Regions between 2017 and 2022
Source: Mercado Livre and InfoMoney
In addition to e-commerce companies, the evidence of growth in the use of this modal can be observed through disclosures of traditional airlines, as is the case of LATAM. In news released in December 2022, one of the points addressed by the company was the start of cargo operations on the Mexico City – Recife route and the 100% increase in capacity on the Miami – Florianópolis route.
Furthermore, data from IATA (International Air Transport Association) show that Latin America has stood out in the demand for air cargo. In a November 2022 survey, the region was the only one with growth in CTKs (tons times kilometers flown), when compared to the same month of the previous year.
Table 2: Comparison of the global growth in demand for air cargo between the months of November (2021-2022). Source: IATA. Reviews: ILOS
Thus, even if the air modal presents obstacles that limit its use, it is undeniable that the demands of customers for speeding up deliveries, the movements carried out by large companies and the growing demand in this segment demonstrate the existence of a development and heating in the sector for the next years.
Be sure to check out these and other logistical indicators on logistic indicators page from the ILOS website.
References:
- ILOS Survey [2022]
- LATAM Airlines – Medicines, electronics and textiles are the cargo most transported by LATAM in Brazil in 2022
- CNN - Airlines have transported millions of vaccines in the country
- Economic value - Amazon boosts its fleet of planes amid the logistical challenges of the pandemic and now the war
- UOL - Mercado Livre will have its own fleet of planes to speed up deliveries in Brazil
- INFOMONEY – Mercado Livre receives 1st cargo plane from GOL to reduce delivery times in the North and Northeast
- LATAM Airlines – LATAM recalls 10 deliveries that reinforce its commitment to Brazil in 2022
- ANAC – Air Transport Statistical Data — National Civil Aviation Agency ANAC
IATA – Demand for air cargo declines in November
