Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market

Air cargo origin destination flows in the Latin America and the Caribbean (LAC) region are heavily concentrated in the largest economies of South America and Mexico. With 32.7 percent of the airfreight moved to, from, and within the region, Brazil...

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Main Authors: Serebrisky, Tomás, Schwartz, Jordan, Pachón, María Claudia, Ricover, Andrés
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AIM
AIR
ASA
HUB
Online Access:http://documents.worldbank.org/curated/en/2011/03/14981006/making-small-market-thrive-recommendations-efficiency-gains-latin-american-air-cargo-market
http://hdl.handle.net/10986/17490
id okr-10986-17490
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS CHARGES
AIM
AIR
AIR CARGO
AIR CARGO TRAFFIC
AIR CARRIERS
AIR FREIGHT
AIR SERVICE
AIR SERVICE AGREEMENT
AIR SERVICE AGREEMENTS
AIR TRANSPORT
AIR TRANSPORT ASSOCIATION
AIR TRANSPORT DEMAND
AIR TRANSPORT MARKET
AIR TRANSPORT SECTOR
AIR TRANSPORTATION
AIRBUS
AIRCRAFT
AIRCRAFT TYPES
AIRCRAFTS
AIRLINE
AIRLINE PASSENGER
AIRLINES
AIRPORT
AIRPORT INFRASTRUCTURE
AIRPORT OPERATOR
AIRPORT SERVICES
AIRPORTS
AIRWAYS
ARTERIES
ASA
AVIATION INDUSTRY
BONDED WAREHOUSES
CABOTAGE
CAPITAL INPUTS
CARGO BAYS
CARGO CAPACITY
CARGO CARRIERS
CARGO HUB
CARGO SERVICES
CARGO TRAFFIC
CARGO VOLUMES
CARRIERS
CHARTER FLIGHTS
CIVIL AVIATION AUTHORITY
COMMERCIAL SERVICES
COMMODITIES
COMMODITY
CONCESSIONS
CONE
CONTAINER OPERATIONS
CONTAINERIZED CARGO
CONTAINERS
CUSTOMS
CUSTOMS PROCEDURES
DELIVERIES
DISTRIBUTION NETWORK
DOMESTIC TRAFFIC
ECONOMIC REGULATORS
ELASTICITY
ELASTICITY OF DEMAND
EXCESS CAPACITY
EXCLUSIVE RIGHTS
FARES
FIVE FREEDOMS
FLIGHT
FOREIGN AIRLINES
FOREIGN INVESTMENT
FREIGHT FLEET
FREIGHT MARKET
FREIGHTERS
FUEL
FUEL PRICES
GROWTH FORECASTS
GROWTH RATES
HANDLING
HIGH TRANSPORT
HUB
IMPACT OF TRANSPORT
IMPACT OF TRANSPORT COSTS
INSPECTION
INTERNATIONAL AIR SERVICES
INTERNATIONAL AIRPORT
INTERNATIONAL CARGO TRAFFIC
INTERNATIONAL CIVIL AVIATION
INTERNATIONAL CIVIL AVIATION ORGANIZATION
INTERNATIONAL TRAFFIC
LANDING
LANDLOCKED COUNTRIES
LEGAL BARRIERS TO ENTRY
LEVEL OF DEMAND
LOADING
MARKET ACCESS
MARKET CONDITIONS
MODE OF TRANSPORTATION
NATIONAL CARRIERS
NUMBER OF AIRLINES
OWNERSHIP RESTRICTIONS
PASSENGER
PASSENGER FLIGHTS
PASSENGER SERVICES
PASSENGERS
PAYLOAD
PICK-UP
PILOTS
PRIVATE AIRLINES
RAILROAD
RANGE
REFERENCE
REGIONAL AIRLINES
REVENUE COLLECTION
ROAD
ROAD INFRASTRUCTURE
ROUTE
ROUTES
SERVICE LEVELS
SERVICE PROVIDERS
SHIPPERS
SHIPPING
SIGNAGE
SINGLE SERVICE PROVIDER
SUPPLY CHAIN
SURFACE TRANSPORTATION
TOLL
TONNAGE
TRADE LOGISTICS
TRAFFIC
TRAFFIC FLOWS
TRANSIT
TRANSPORT
TRANSPORT COSTS
TRANSPORT MARKET
TRANSPORT MODES
TRANSPORT SERVICES
TRANSPORT SUPPLY
TRANSPORTATION
TRIP
TRIPS
TRUCKS
WAREHOUSE
spellingShingle ACCESS CHARGES
AIM
AIR
AIR CARGO
AIR CARGO TRAFFIC
AIR CARRIERS
AIR FREIGHT
AIR SERVICE
AIR SERVICE AGREEMENT
AIR SERVICE AGREEMENTS
AIR TRANSPORT
AIR TRANSPORT ASSOCIATION
AIR TRANSPORT DEMAND
AIR TRANSPORT MARKET
AIR TRANSPORT SECTOR
AIR TRANSPORTATION
AIRBUS
AIRCRAFT
AIRCRAFT TYPES
AIRCRAFTS
AIRLINE
AIRLINE PASSENGER
AIRLINES
AIRPORT
AIRPORT INFRASTRUCTURE
AIRPORT OPERATOR
AIRPORT SERVICES
AIRPORTS
AIRWAYS
ARTERIES
ASA
AVIATION INDUSTRY
BONDED WAREHOUSES
CABOTAGE
CAPITAL INPUTS
CARGO BAYS
CARGO CAPACITY
CARGO CARRIERS
CARGO HUB
CARGO SERVICES
CARGO TRAFFIC
CARGO VOLUMES
CARRIERS
CHARTER FLIGHTS
CIVIL AVIATION AUTHORITY
COMMERCIAL SERVICES
COMMODITIES
COMMODITY
CONCESSIONS
CONE
CONTAINER OPERATIONS
CONTAINERIZED CARGO
CONTAINERS
CUSTOMS
CUSTOMS PROCEDURES
DELIVERIES
DISTRIBUTION NETWORK
DOMESTIC TRAFFIC
ECONOMIC REGULATORS
ELASTICITY
ELASTICITY OF DEMAND
EXCESS CAPACITY
EXCLUSIVE RIGHTS
FARES
FIVE FREEDOMS
FLIGHT
FOREIGN AIRLINES
FOREIGN INVESTMENT
FREIGHT FLEET
FREIGHT MARKET
FREIGHTERS
FUEL
FUEL PRICES
GROWTH FORECASTS
GROWTH RATES
HANDLING
HIGH TRANSPORT
HUB
IMPACT OF TRANSPORT
IMPACT OF TRANSPORT COSTS
INSPECTION
INTERNATIONAL AIR SERVICES
INTERNATIONAL AIRPORT
INTERNATIONAL CARGO TRAFFIC
INTERNATIONAL CIVIL AVIATION
INTERNATIONAL CIVIL AVIATION ORGANIZATION
INTERNATIONAL TRAFFIC
LANDING
LANDLOCKED COUNTRIES
LEGAL BARRIERS TO ENTRY
LEVEL OF DEMAND
LOADING
MARKET ACCESS
MARKET CONDITIONS
MODE OF TRANSPORTATION
NATIONAL CARRIERS
NUMBER OF AIRLINES
OWNERSHIP RESTRICTIONS
PASSENGER
PASSENGER FLIGHTS
PASSENGER SERVICES
PASSENGERS
PAYLOAD
PICK-UP
PILOTS
PRIVATE AIRLINES
RAILROAD
RANGE
REFERENCE
REGIONAL AIRLINES
REVENUE COLLECTION
ROAD
ROAD INFRASTRUCTURE
ROUTE
ROUTES
SERVICE LEVELS
SERVICE PROVIDERS
SHIPPERS
SHIPPING
SIGNAGE
SINGLE SERVICE PROVIDER
SUPPLY CHAIN
SURFACE TRANSPORTATION
TOLL
TONNAGE
TRADE LOGISTICS
TRAFFIC
TRAFFIC FLOWS
TRANSIT
TRANSPORT
TRANSPORT COSTS
TRANSPORT MARKET
TRANSPORT MODES
TRANSPORT SERVICES
TRANSPORT SUPPLY
TRANSPORTATION
TRIP
TRIPS
TRUCKS
WAREHOUSE
Serebrisky, Tomás
Schwartz, Jordan
Pachón, María Claudia
Ricover, Andrés
Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
geographic_facet Latin America & Caribbean
relation Transport paper series;no. TP-35
description Air cargo origin destination flows in the Latin America and the Caribbean (LAC) region are heavily concentrated in the largest economies of South America and Mexico. With 32.7 percent of the airfreight moved to, from, and within the region, Brazil is the largest cargo market, followed by Colombia and Mexico, with 17.9 percent and 16.0 percent, respectively. The relatively small size of the air cargo market in LAC can be explained by: (i) low levels of demand for air cargo services (supply responds adequately to a low demand for air cargo services in/from LAC), or (ii) restrictions to a properly functioning market that impede the air cargo market to reach its full potential. The analysis carried out for the preparation of this paper indicates that the low levels of demand is the most reasonable explanation for the small size of the LAC air cargo market. There is room to improve some regulations which would make the air cargo market work more efficiently and probably at lower costs, but the size and diversity of the market will not significantly change as a result. Airport infrastructure quality fairs well overall, although some isolated issues exist in certain airports in LAC. Infrastructure limitations were evaluated through a survey conducted by an association of LAC airlines (ALTA). The results of the survey show that even the worst rated airports received an acceptable score in absolute terms. Policies aimed at reducing operating costs and related to soft constraints should also be implemented paperless customs procedures, improved security in airport premises and streamlining of custom inspection processes.
format Publications & Research :: Working Paper
author Serebrisky, Tomás
Schwartz, Jordan
Pachón, María Claudia
Ricover, Andrés
author_facet Serebrisky, Tomás
Schwartz, Jordan
Pachón, María Claudia
Ricover, Andrés
author_sort Serebrisky, Tomás
title Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
title_short Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
title_full Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
title_fullStr Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
title_full_unstemmed Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
title_sort making a small market thrive : recommendations for efficiency gains in the latin american air cargo market
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2011/03/14981006/making-small-market-thrive-recommendations-efficiency-gains-latin-american-air-cargo-market
http://hdl.handle.net/10986/17490
_version_ 1764436381794304000
spelling okr-10986-174902021-04-23T14:03:36Z Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market Serebrisky, Tomás Schwartz, Jordan Pachón, María Claudia Ricover, Andrés ACCESS CHARGES AIM AIR AIR CARGO AIR CARGO TRAFFIC AIR CARRIERS AIR FREIGHT AIR SERVICE AIR SERVICE AGREEMENT AIR SERVICE AGREEMENTS AIR TRANSPORT AIR TRANSPORT ASSOCIATION AIR TRANSPORT DEMAND AIR TRANSPORT MARKET AIR TRANSPORT SECTOR AIR TRANSPORTATION AIRBUS AIRCRAFT AIRCRAFT TYPES AIRCRAFTS AIRLINE AIRLINE PASSENGER AIRLINES AIRPORT AIRPORT INFRASTRUCTURE AIRPORT OPERATOR AIRPORT SERVICES AIRPORTS AIRWAYS ARTERIES ASA AVIATION INDUSTRY BONDED WAREHOUSES CABOTAGE CAPITAL INPUTS CARGO BAYS CARGO CAPACITY CARGO CARRIERS CARGO HUB CARGO SERVICES CARGO TRAFFIC CARGO VOLUMES CARRIERS CHARTER FLIGHTS CIVIL AVIATION AUTHORITY COMMERCIAL SERVICES COMMODITIES COMMODITY CONCESSIONS CONE CONTAINER OPERATIONS CONTAINERIZED CARGO CONTAINERS CUSTOMS CUSTOMS PROCEDURES DELIVERIES DISTRIBUTION NETWORK DOMESTIC TRAFFIC ECONOMIC REGULATORS ELASTICITY ELASTICITY OF DEMAND EXCESS CAPACITY EXCLUSIVE RIGHTS FARES FIVE FREEDOMS FLIGHT FOREIGN AIRLINES FOREIGN INVESTMENT FREIGHT FLEET FREIGHT MARKET FREIGHTERS FUEL FUEL PRICES GROWTH FORECASTS GROWTH RATES HANDLING HIGH TRANSPORT HUB IMPACT OF TRANSPORT IMPACT OF TRANSPORT COSTS INSPECTION INTERNATIONAL AIR SERVICES INTERNATIONAL AIRPORT INTERNATIONAL CARGO TRAFFIC INTERNATIONAL CIVIL AVIATION INTERNATIONAL CIVIL AVIATION ORGANIZATION INTERNATIONAL TRAFFIC LANDING LANDLOCKED COUNTRIES LEGAL BARRIERS TO ENTRY LEVEL OF DEMAND LOADING MARKET ACCESS MARKET CONDITIONS MODE OF TRANSPORTATION NATIONAL CARRIERS NUMBER OF AIRLINES OWNERSHIP RESTRICTIONS PASSENGER PASSENGER FLIGHTS PASSENGER SERVICES PASSENGERS PAYLOAD PICK-UP PILOTS PRIVATE AIRLINES RAILROAD RANGE REFERENCE REGIONAL AIRLINES REVENUE COLLECTION ROAD ROAD INFRASTRUCTURE ROUTE ROUTES SERVICE LEVELS SERVICE PROVIDERS SHIPPERS SHIPPING SIGNAGE SINGLE SERVICE PROVIDER SUPPLY CHAIN SURFACE TRANSPORTATION TOLL TONNAGE TRADE LOGISTICS TRAFFIC TRAFFIC FLOWS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT MARKET TRANSPORT MODES TRANSPORT SERVICES TRANSPORT SUPPLY TRANSPORTATION TRIP TRIPS TRUCKS WAREHOUSE Air cargo origin destination flows in the Latin America and the Caribbean (LAC) region are heavily concentrated in the largest economies of South America and Mexico. With 32.7 percent of the airfreight moved to, from, and within the region, Brazil is the largest cargo market, followed by Colombia and Mexico, with 17.9 percent and 16.0 percent, respectively. The relatively small size of the air cargo market in LAC can be explained by: (i) low levels of demand for air cargo services (supply responds adequately to a low demand for air cargo services in/from LAC), or (ii) restrictions to a properly functioning market that impede the air cargo market to reach its full potential. The analysis carried out for the preparation of this paper indicates that the low levels of demand is the most reasonable explanation for the small size of the LAC air cargo market. There is room to improve some regulations which would make the air cargo market work more efficiently and probably at lower costs, but the size and diversity of the market will not significantly change as a result. Airport infrastructure quality fairs well overall, although some isolated issues exist in certain airports in LAC. Infrastructure limitations were evaluated through a survey conducted by an association of LAC airlines (ALTA). The results of the survey show that even the worst rated airports received an acceptable score in absolute terms. Policies aimed at reducing operating costs and related to soft constraints should also be implemented paperless customs procedures, improved security in airport premises and streamlining of custom inspection processes. 2014-03-28T21:59:21Z 2014-03-28T21:59:21Z 2011-03 http://documents.worldbank.org/curated/en/2011/03/14981006/making-small-market-thrive-recommendations-efficiency-gains-latin-american-air-cargo-market http://hdl.handle.net/10986/17490 English en_US Transport paper series;no. TP-35 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Latin America & Caribbean