Luiz R. Vasconcelos, President, FedEx Latin America and the Caribbean, tells Graham Newton, for Airlines Magazine, that the region is experiencing strong growth in air cargo.
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…
