Tradelanes / LatAm-EU airfreight – stability and opportunity, but more freighters needed

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New shoots of growth can be opportunistic, like a weed, or strategic, as the gardener intended.  

News that Avianca Cargo has started its own freighter service to Europe, Maastricht, is the latter, and can be attributed to a sign of the growing strength of the Latin America-Europe tradelane. 

Avianca began the route in partnership with a Chinese operator using an Ethiopian Airlines’ 777F to fly from China to Quito with ecommerce, and on to Maastricht with flowers. It gave Avianca access to the Dutch flower market, which its passenger services to Madrid, Barcelona, London and Paris did not. 

Now, however, it is launching two cargo flights a week, starting this month, on an A330F. Connecting Quito, Miami, Maastricht, and Zaragoza, Avianca will bring flowers from South America to Europe, and export clothing for a high-street fashion group in Europe, thought to be Inditex. 

“We look forward to continuing to grow at this strategic hub,” said business communication manager María Ximena Marín Morales. 

Avianca Cargo, which released its second-quarter results this summer, showing a 15.5% increase in revenues, driven, it said by resilient trade flows. 

One of which is the increasingly important and stable lane between Latin America and the EU. 

Eduardo Rosa, development manager – air export, for Brazil’s AGL Logistics, explained: “Air trade between Latin America and the European Union has shown consistent growth since 2024, with 2025 delivering even stronger results, both in exports and imports.” 

Jackson Campos, AGL’s corporate affairs director, added: “Air trade between Latin America and Europe has shown positive momentum. Demand for high-value and time-sensitive products is encouraging more frequent connections, especially from South American origins.  

“Airlines are recognising that the European market offers diversification and stability, compared with other regions. This growth also reflects a shift in priorities among exporters that now value sustainability, traceability, and better service levels. The relationship between both regions is becoming stronger, with Europe seen as a long-term partner for premium goods, while Latin American producers aim to increase reliability and visibility in a competitive global logistics environment.” 

Perhaps key to the changing relationship between the two regions is the lack of reliability of Latin America’s nearest trading partner, the US. But it is more nuanced than simply a pivot away from its mighty northern neighbour, said Mr Campos.. 

“Latin American companies are not abandoning the US market, but are becoming more strategic about diversification..  

“Europe represents a promising alternative, especially for exporters seeking stability, predictability, and more consistent sustainability standards. Many businesses view the EU as a less volatile destination, with consumers more open to premium agricultural and manufactured goods. The perception of Europe as a market that rewards quality rather than volume also encourages exporters to develop new logistics solutions and long-term partnerships.

“The overall movement is more about risk management and access to new opportunities than about political or economic distancing from the US.” 

Mr Rosa is more direct, noting that the increase in trade barriers with the US has led exporters to seek “more stable alternative markets”. 

“The EU presents an attractive market, particularly for products such as fresh food, pharmaceuticals, electronics, and strategic minerals. Demand is consistent, and consumers place a high value on quality and traceability,” he added. “In this context, trade agreements and incentives, such as the EU–Mercosur Agreement, make trade more competitive by offering tariff advantages and process simplification. 

Meanwhile, EU exporters are also eyeing a new market, although the pace of growth in EU exports to Latin America is slower. 

“Air exports include perishables, pharmaceuticals, electronics, and high-value minerals, while imports consist of industrial inputs, medical equipment, chemicals, and hi-tech automotive parts and electronics, as well as specialty foods, beverages such as wine, and other premium brand products.” 

AGL noted that exports from LatAm to the EU had remained relatively stable this year, especially for high-value or perishable products, “due to long-term contracts and predictable demand, which allows for better planning and reduced volatility”. 

But the other direction is less stable, said Mr Rosa. 

“EU-LatAm shows greater variability, strongly influenced by space availability, competition with other routes (Asia–EU, US–EU), and seasonality. During peak periods or capacity constraints, prices can rise sharply.” 

And freighter capacity is difficult to come by, said AGL. 

“Despite the increased air network and the presence of multiple airlines and flights, one of the main challenges for shippers in the Latin America–EU corridor is space availability on flights,” said Mr Rosa. 

“Much of the cargo travels in passenger aircraft, making capacity limited and seasonal. During peak periods, particularly for perishables or urgent shipments, securing sufficient space can be difficult, raising rates and requiring proactive planning. 

“Shippers also face logistical competition from other origins and destinations … which can limit availability and cause delays.” 

According to Rotate’s live capacity database, in spite of increased demand, freighter capacity in the past year has fallen 10% year on year from Latin America to Europe, and a drop of 19% the other way. In the past six months, the year-on-year decline has been 14% westbound, and 9% eastbound. In the past month, though, eastbound freighter capacity has jumped 12%. 

Schiphol, whose proximity to the Dutch flower market would make it an attractive hub for south American exporters,  saw volumes from the region fall in the first half of the year. 

A spokesperson explained: “This development is largely attributable to a strategic repositioning by airlines, which have allocated their capacity to more lucrative routes from Asia. This shift was further driven by sharp peaks in ecommerce volumes to Europe and the US, ahead of the implementation of trade tariffs.

“Nevertheless, Latin America remains an important region for Schiphol, particularly on the import side. The supply of fresh goods (perishables), such as flowers, vegetables, and fruit, continues to be economically attractive. Several charter airlines are responding to this demand, depending on slot availability and fleet capacity.

“Whether there will be short-term growth in the number of flights between Schiphol and Latin America depends on several factors, including (global) market developments, geopolitical dynamics, operational capacity, and slot availability. The situation remains fluid, with airlines continuously adjusting their network strategies to evolving economic conditions.” 

But while some airports have faltered, others have not. Brussels, from this month, will have 15 weekly rotations to Latin America, after LATAM set up its hub at the airport, growing from four weekly flights in March 2024. 

“Brussels is now directly connected to 13 destinations across South America, including Brazil, Uruguay, Argentina, Chile, Peru, Ecuador, and Colombia,” said a spokesperson. “This makes Brussels one of the best-connected European airports for full freighter cargo operations with South America.” 

But it takes good yields to attract airlines to the table. 

Mr Campos explained: “Rates on this lane have shown relative stability, supported by balanced demand and disciplined capacity management. Airlines have learned to manage seasonality better, while forwarders focus on long-term contracts rather than spot pricing.  

“Although rates fluctuate with peaks in perishables and pharma, the general sentiment is of predictability and healthy yields. Shippers see the lane as cost-effective when reliability and transit time are prioritised over price alone.  

“The market now values consistency, and stable rates help build trust among carriers, exporters, and importers. Overall, the corridor has matured, offering a more sustainable pricing environment for all players involved.” 

Freightos terminal shows that, on a basket of routes from Latin America to the EU, rates started the year at an average of $2.86/kg, spiking in March and July to as high as $3.55, and are now around $2.23. But the spikes this year are nowhere near as pronounced as last year. Contract rates have been far more stable, with a spike in June, to $3.88, but now at about $2.50. 

Source: Freightos terminal

Spot prices are firmer the other way: EU-Latam started the year at an average of $3.41/kg, peaking in July at $5.76 and levelling off to about $5.24 now. 

Contract rates on the lane spiked in March, to $5.18, but have been level since July, at about $2.87. 

Source: Freightos terminal

Robert van de Weg, CEO of mas, the Mexican cargo airline, explained that while demand was healthy, carriers needed a network to feed into and from individual markets in Latin America “which tend to be rather volatile”. 

Mr Campos added that South American infrastructure could also be a hurdle. 

“The main challenges on the Europe–Latin America airfreight lane are operational; managing stricter documentation and data requirements while facing higher costs linked to environmental compliance. Seasonal capacity shortages and varying airport infrastructure quality across Latin America add unpredictability. Moreover, differing customs and security processes can slow down flows, especially for time-sensitive goods.  

“The market rewards flexibility and deep local expertise, pushing forwarders and airlines to adapt constantly. The future success of this lane will depend on technology integration, collaboration, and investments in transparency and resilience.” 

Now, all it needs is aircraft.