General Rate Increases on Select Lanes to Latin America
The current market development and increased demand in Latin America have triggered carriers in the region to increase Southbound rates to main destinations across South America.
Demand to Latin America has increased in May by 6.7 percent compared to last year, and current activity forecast for the third and fourth quarter remains strong. At the same time, freighter capacities are decreasing, by approximately 9 percent year-on-year (May). These freighter capacity reductions are the result of major carriers in the region suffering from unsustainable losses generated by very low rates.
Increase in air freight demand to select Latin American countries year-on-year (June):
• Argentina: 34.74 percent
• Brazil: 10.45 percent
• Chile: 12.89 percent
• Colombia: 20.69 percent
• Mexico: 11.83 percent
The rate increases will go into effect on August 28, and will be applied to all outbound U.S. lanes to the following destinations:
DHL Global Forwarding is required to pass on these increases to our customers. Kindly allow us to reassure you that we are doing everything possible to mitigate these increases as much as possible. We will continue to drive our high quality and manage our service reliability by engaging our network of airline partners closely. We also commit to have active monitoring of the market situation and to provide timely updates.
Should you have any questions, please contact your local sales representative for more information. DHL Global Forwarding is committed to keeping our customers informed of changes in the industry that could impact their business. Your ongoing support is highly appreciated and we thank you for your cooperation in advance.