Latam Cargo, the freight division of the airline, is seeing an expansion in its agricultural product transportation, influenced by evolving consumer habits. Claudio Torres, vice president for South America, notes that fruits are the leading commodity transported from Brazilian airports.
In 2022, the company moved 207,170 tons of cargo across all categories, as reported by Brazil's civil aviation authority (ANAC), marking a 24.2% increase from 2023's 166,790 tons. These figures cover all Latam Cargo divisions operating in Brazilian airports, including branches in Peru, Ecuador, Colombia, Chile, Brazil, and Latam Mercosul.
Fresh fruit shipments in Brazil contribute 60% to 70% of the company's logistics service revenue. The segment has been growing by 5% to 10% annually and is expected to maintain this pace. Torres states, "Since the pandemic, consumer preferences for fruit have changed. European and U.S. markets are consuming more fresh fruit, and Brazil has the right production to meet this demand."
Latam Cargo's operations have historically involved transporting fresh and perishable goods, starting in Chile under the LAN brand with products like asparagus, salmon, and stone fruits. The company expanded to Peru and Ecuador, adding seafood and flowers, before reaching Colombia. The 2012 merger with TAM introduced this expertise to Brazil, focusing on exports like tuna, tilapia, mangoes, and papayas.
Internal data shows Latam Cargo manages 22% of Brazil's air-shipped fruit exports, with a 25% share in papaya exports. From 2022 to 2023, cargo volume in this segment increased by 33%. For shipments to Europe, logistics ensure no more than two days from receiving the fruit to sale clearance, according to Torres.
Source: Valor International