Mexican air wave attracts carriers with an eye on 'nearshoring' cargo flows
Airfreight traffic in and out of Mexico keeps growing, buoyed by international carriers increasing capacity ...
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
The International Air Transport Association (IATA) has called for talks with Mexican authorities to avoid a repeat of the mistakes that hobbled the start of freighter operations at Felipe Angeles International Airport (AIFA) a year ago.
The call comes as the industry braces itself for the imminent expansion of the capital city’s designated airfreight hub.
Operations at AIFA got off to a chaotic start on 1 September last year, after the government banned freighter operations at Benito Juarez International (AICM) to relieve chronic congestion at the then main airport serving Mexico City.
Most cargo arriving at the new gateway could not be cleared, forcing carriers to truck it to AICM for clearance – and it took up to a week to make the two-hour trip. It did not help that there were not enough trucks available, recalled Frank Nozinsky, director Mexico of Lufthansa Cargo.
Rigoberto Lopez, IATA’s regional cargo manager Americas, wants the authorities to sit down with industry representatives to discuss the lessons of the botched freighter migration to prepare for the expansion of AIFA.
While the main thrust of the expansion is on the passenger side, plans also call for the creation of seven cargo warehouses, two ramps and a taxiway.
Somewhat bafflingly, there have been signals that the expansion should be completed before Mexican president Andres Manuel Lopez Obrador hands over to his successor, Claudia Sheinbaum, in October, which sounds more than ambitious.
Mr Lopez said it was still complicated to connect cargo from AICM to AIFA, adding that security on the road remained a concern. The lengthy transit time and high cost puts Mexico at a competitive disadvantage, he argued, and undermined the appeal of airfreight against other modes.
Mr Nozinky noted that flows and processes had improved significantly and LH Cargo had not experienced any criminal activity on the new highway to AIFA, while a logistics provider added that customs processes and transhipments still needed to be accelerated and more airlines needed to be attracted.
But there is no question that the cargo infrastructure at the airport needs expansion. The facilities were already fully taken a year ago, and one integrator has indicated that its space is inadequate.
Mexico’s airfreight volume in the first five months of this year was up 7%, adding further pressure for new facilities at AIFA, the fastest-growing Mexican airport during the period. Indeed, “demand is still strong”, noted Mr Nozinsky.
LH Cargo added a weekly freighter stop at Monterrey on its Frankfurt-AIFA route in May, which resulted in the carrier considering a second weekly frequency to this routing, he said.
To make up for the weight restrictions due to the altitude of the Mexican capital, LH’s daily freighter flights between AIFA and its home market stop in Guadalajara, Monterrey or Dallas/Fort Worth on the eastbound sector. Automotive traffic and pharmaceuticals are the strongest verticals, but electronics and e-commerce have also been going strong, supplemented by seasonal perishables eastbound.
For the airline, the migration of freighters to AIFA was a challenge because it continues to run its passenger flights to AICM, mainly to accommodate travellers connecting to other flights there. Nevertheless, Mr Nozinsky regards AIFA as the future, given the congestion and ageing infrastructure at AICM.
Meanwhile, one Mexican forwarder recently expressed a hope that the new government might consider allowing some freighter operations to return to AICM. And, while this is unlikely, the incoming administration appears more open to dialogue with industry than the current one, say observers.
But how far any dialogue may go does not rest entirely with the new president. The airports are all controlled by the military, and “dialogue with them is not always customer-oriented”, commented one industry executive.
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