The increase in the use of Panama Canal ports has caused air cargo industry to lose a huge market share to sea cargo industry

In Miami, an event under the title “Air and Sea Cargo Americas” was organised recently where Jaime Alvarez Price, senior director cargo at Copa Airlines said that there has been an increase in the number of shipping line services transiting the artery.

Over recent years, this increase has had a severe effect on the air cargo services as sea cargo has earned a huge share.

What’s going on with air cargo?

Price also added that on the marine side, there is more and more activity and since they are into airfreight, they are witnessing more and more airfreight being converted into sea freight services.

A huge number of ships has started coming into the port more frequently than ever before, like for instance, previously one ship would come to port in a week but now things have changed exceptionally as now there are two or three ships in a week.

What’s the role of Panama?

Panama has become the backbone of sea cargo and after the expansion, experts say it is going to make matters worse for the airfreight as the number of shipping containers transiting the Panama Canal will increase once the project has completed. It will then allow larger vessels to pass through without any difficulty.

What will be the future of air cargo?

Mathieu Floreani, DHL Global Forwarding chief executive for the Americas has said that Panama’s air cargo industry has a God-given 0pportunity to benefit from as by this year’s industrial action. The haulers had been put off using the US west coast ports and there is also a long term unavailability of the truckers too.

Floreani also said that he has been into constant contact with many of his customers who used to come into LA, truck across the country to Miami and then fly right into Latin America. But now most of the companies go direct to Panama and then fly the cargo out of Panama.