Chile Air Freight Transport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

Chile Air Freight Transport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The Chile Air Freight Transport Market size is estimated at USD 666.49 million in 2024, and is expected to reach USD 943.36 million by 2029, growing at a CAGR of 7.20% during the forecast period (2024-2029).

The increase in the use of cold chain technology, robotics, automation systems, artificial intelligence (AI), big data, deep learning, the Internet of Things, and augmented and virtual reality in multiple operations is expected to promote the growth of the Chilean air freight transport market. Due to the global spread of the COVID-19 pandemic, the demand for the air freight industry has fallen sharply. Throughout 2020, Chile's air freight volume was quite low. The economic crisis caused by the strict lockdown in the country has severely affected Chile's air freight transport. In 2019, air freight transport for Chile was 1,232.4 million ton-km.

The advancement of air freight technology and the increased awareness of cargo operators of the possible benefits of the latest technology are expected to promote the growth of the Chilean air cargo market. Additionally, due to the increase in income population and globalization, the demand for goods and services has increased significantly. Airfreight companies are increasingly focusing on digitization to improve efficiency, reshaping the air freight transport market. Since capital investment in the air freight industry takes time to recover, manufacturers are focusing on improving efficiency and reducing operating costs to maintain profitability. The growth of foreign trade is likely to have a positive impact on Chile's air freight transport market. The country's ideal geographic location offers great potential for countries, such as Europe, Asia, Southern countries, and Central America, which can be connected by air, sea, or land transportation.

Chile Air Freight Transport Market Trends

Growing Air Cargo Transport in the Country

The air transport sector has made a significant contribution to the Chilean economy. Compared with 2018, the number of air cargo tonnage transported per kilometer decreased by nearly 3.3% in 2019, while the capacity (in terms of available cargo tonnage per kilometer) increased by 2.1% in 2019. However, there has been an increase in exports in 2020. In January 2020, nearly 36,238 tons of cargo were transported on domestic and international flights, an increase of nearly 12.7% compared to the same period in 2019. Chile's exports of red cherries and other fruits to other countries (such as China) have increased. This provides more opportunities for air cargo providers to enhance their services suitable for perishable demand. China accounted for nearly 90% of Chilean cherry exports in 2019, and by Q4 2019, exports reached nearly 210,000 metric tons.

Chilean Exports Increased 8.5% in the First Month of 2021

Compared with the same month in 2020, Chile's global trade volume in January 2021 increased by 4.2%, and exports increased by 8.5%. With an export value of USD 7.94 billion, China continues to be the main export destination market for Chile's national products, accounting for 47.1% of the market. Followed by the United States (11.8%) and Japan (9.1%), these three countries accounted for 68.0% of total Chile's national sales. The mining sector's exports accounted for 56% of the country's total sales at USD 4.44 billion, an increase of 33.3% compared to the same period last year. In the mining product basket, shipments of copper minerals and their concentrates are outstanding, accounting for 53.3% of the department's total sales, an increase of 42.0% compared to the same period in 2020. Copper ranks second, with a participation rate of 37.3% in mining products. Likewise, it is important to mention the 59.5% growth shown by iron ore and its concentrates.

Chile Air Freight Transport Industry Overview

The Chilean air freight transport market is competitive and fragmented with the presence of international players. With the emergence of a large customer base from industries, such as food and beverage, pharmaceuticals, telecommunications, heavy industry, and other end-user verticals, the air freight industry has attracted huge investments. The country is considered to have great potential for both European and Spanish air freight logistics providers. There are multiple benefits for other countries to develop their business operations in Chile. Major players are UPS, FedEx, DHL, Agility Logistics Chile SA, and Avianca Holdings SA.

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