“No singular economic or tragic event in the last quarter-century has demonstrated such drops in cargo activity in MIA’s history,†states Chris Mangos, MIA marketing manager.
For the first third of 2009, average quantities of MIA’s international and total freight dropped 24 per cent. Traffic related to the Latin American/Caribbean region is down 19 per cent based on performance from 26 carriers; Mexico, down 12 per cent from three carriers; and Asia, down 36 per cent from three carriers.
“Surprisingly, Europe performed and continues to perform better for us, with first third of 2009 performance down just 7 per cent from 10 carriers,†Mangos reports.
Airport officials are now waiting for January-June 2009 tallies where they expect figures to be somewhat better, with the months of May and June showing smaller overall losses in the17-19 per cent range.
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“Hopes of announced increases in manufacturing and production in China, Taiwan, Korea and Japan will spell enhanced imports from Asia and exports to Latin America for us,†he says. “Late 2009/early 2010 may also turn diminished perishables import numbers around as opposite growing seasons in the southern hemisphere begin to produce those products.â€Â
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Growth markets and connections
Meanwhile, airline commitments at MIA remain a mixed bag. American Airlines, one of the airport’s largest customers, recently expanded its service to Brazil from MIA by adding both flight frequencies and new destinations to its worldwide network. American added service from MIA to Belo Horizonte, Recife and Salvador in November to its already existing Rio, Sao Paulo and Recife service.
Brazilian carrier TAM added Manaus from MIA for a total of six passenger/ belly cargo destinations to Brazil on at least daily if not multiple daily basis.
Cargo carriers ABSA and Centurion separately and together now serve Curitiba, Porto Alegre and Vitoria.
“As such, we are for the first time offering a total of nine markets in Brazil from MIA,†Mangos says.
In March, LAN start-up LANCO commenced B767-300 freighters between Bogota and MIA on a service that will gradually build toward daily service. The carrier promises more frequencies and destinations soon.
For Asian carriers, on 6 March, Cathay Pacific Airways commenced B747-400 freighter service between Hong Kong and MIA three times weekly. According to Cathay officials, Miami has performed well for the carrier despite the current economic malaise.
MIA officials hope Cathay will ultimately extend passenger service to Miami as well.
In August, Korean Air Cargo will complete three years of cargo service to Miami. Currently, Korean Air Cargo is averaging four to five weekly B747-400 freighter frequencies from Seoul. MIA officials hope for daily freighter service and eventual passenger service from Korean’s Seoul hub.
China Airlines Cargo is averaging about four freighters weekly serving MIA from Taipei with B747-400 freighters.
El Al, which served MIA with B767 passenger flights from Tel Aviv, discontinued service.
To encourage carriers to utilise MIA, a second generation incentive programme is available that includes benefits for the introduction of freighter service. The programme, called ASIP2, permits a discounted landing fee for one year for any freighter commencing service from any European, Asian or African marketnot presently served by freighter service from MIA. Additional frequencies thatare added during the first year alsobecome eligible for an entire year.
Any new international passenger destination not presently being served from MIA receives a full credit on landing fees for a year.
Separately, an airline commencing service from a list of “premium†markets that have been pre-selected by MIA as highly desirable, will receive additional incentives to help market the new flight during that first year of operation.
Consolidation and connecting freight
So far this year, most carriers that have built up their MIA cargo services use the airport as an international consolidation and connecting point.
“The LAN group, which is Chilean, has its global cargo headquarters at MIA,†Mangos explains. “As such, as new affiliate carriers are introduced into the LAN family, they tend to debut in Miami and serve points in Latin America from here.†That applies to LAN Cargo, LanPeru, LanEcuador, LanArgentina, LANCO, and affiliates ABSA and MAS Air.
“These carriers in particular, and others that have been here for considerable time, have agreements in place or interline partnerships with a host of European and Asian carriers that provide inbound feed or outbound distribution to points in Europe, Asia and the Middle East,†Mangos adds.
The northbound routings are typically perishables products from those markets, while nearly 100 different commodities of dry or regular cargo can be also traced making their way to MIA onward to local or markets farther afield.
Freight flying southbound is primarily high technology goods: computers and peripherals, communications equipment, satellite equipment, etc.
“These averaged about $950 million per month in exports during 2008,†Mangos reveals.
Shipments also include commercial and industrial machinery, pharmaceuticals, agricultural equipment and the back and forth movement of textiles and clothing associated with multidestination processes in manufacturingthat lead to finished consumer goods.
Airport development
Helping that effort is MIA’s development scheme, particularly as how it accommodates the flowers and perishables trade. Its flow-thru design permits off-loading positions close to freighter terminals and across from land-side trucking positions on the other side.
The airport’s “open-U†facility concept also permits multiple parked B747- 400 freighters to transfer shipments to adjacent aircraft or to the facility alongside the activity. This is important since perishables are also making tailto- tail connections to points in Europe and Asia.
Finally, all warehouses were fitted for installation of support features such as refrigeration units, or subsections to handle perishable products. In addition, present enhancements being handled by the Florida Department of Transportation are creating a widening of the main roadway out of MIA’s cargo areas.
“The enhancement includes an eventual viaduct to handle trucking operations destined to the Airport West area where literally tens of millions of square feet of cargo warehousing await,†Mangos says.
A second on-airport fumigation facility is in the works. Additional plans call for the first of next generation cargo facilities at MIA. The new facility, to be third-party developed, will be built for freighter airline Centurion, and their affiliates Cielos del Peru and MTA ofBrazil.
Cuban wildcard
The current economic downturn aside, the future looks bright for MIA thanks largely to Miami’s vast business in international trade and tourism.
The community is upwards of 65 per cent Hispanic. Spanish and Portuguese are commonly spoken within the Miami business community. Additionally, for many from Latin America and theCaribbean, Miami is either their second home, or they have extended families and interests here. For many, Miami is an extension of their homelands.
Given Miami’s large Cuban population, many wonder what impact open relations with Cuba could have on MIA.
Although the trade embargo remains, in April, US President Obama lifted some travel restrictions on Cuban Americans visiting relatives in Cuba. Within the following 60 days, MIA saw a surge in travel by charter carriers flying passengers to Cuba, with even more drastic increases in late June, early July.
If policies regarding Cuba widen, MIA officials believe the airport is well positioned to benefit given its geographic proximity, cultural affinity, and massive population of Cubans who will want to reap the benefits.
Miami, itself, is already home to nearly 1,000 multinational companies that chose the city for their Latin American/Caribbean headquarters. The same should happen in an ‘open’ Cubascenario, Mangos concludes.
