Like in many markets, Covid-19 had a significant impact on air cargo capacity in the United States (US). Following the pandemic, there was a surge in passenger flights, exceeding pre-pandemic levels, which led to a rapid decline in yields.
In 2023-2024, there has been a stabilisation in both capacity and yields. Throughout 2024, the demand for e-commerce has shifted freighter capacity towards Asia, reducing availability out of the Americas.
Additionally, geopolitical events like the ongoing conflicts in Ukraine and Israel-Palestine, instability in the Suez Canal, and social events such as the US port strikes are affecting capacity and yields.
Looking ahead to 2025, the industry will need to monitor e-commerce trends, the outcomes of the US Presidential elections, and ongoing geopolitical and social events, as they could continue to influence capacity and yields in the region.
“In a world of constant change, only agile organisations like ECS Group can quickly adapt,” Adrien Thominet, ECS Group’s Executive Chairman, stated. “Our complete coverage of the Americas, strong financial position, and readiness for digital transformation enable us to respond to market demands effectively. This adaptability is further reinforced by our network across North, Central, and South America, which allows us to create valuable synergies.”
“ECS Group has reached a level of maturity in the Americas that enables us to seize opportunities and deliver state-of-the-art services to our airline partners,” Paco Ortega, ECS Group’s Regional Vice President Americas, added. “Our focus is on optimising existing capacity through targeted actions in capacity and yield management, supported by our strong digital capabilities.”
Regional position
Traditionally, ECS Group divided the Americas into two regions, North and South. With the acquisition of Americas GSA in late 2023, which has a strong presence in Central America, the company now offers full coverage across the Americas, from Canada to Chile.
This consolidation has positioned ECS Group as the leading sales organisation in the region. Moving forward, the company aims to create synergies and capitalise on opportunities across North, Central, and South America.
“Over the past few years, ECS Group has heavily invested in digital transformation, positioning us as a leader in the air cargo industry. Our goal is to bring this expertise to the Americas, leading the region in implementing tools such as marketplace development, dynamic pricing, business intelligence applications, and dynamic freighter capacity management,” Thominet highlighted.
“Through our partnership with CargoTech, we offer a comprehensive suite of digital solutions, including advanced revenue management tools. The American market holds immense potential for deploying these innovations.
“Our strategy leverages ECS Group’s digital capabilities, our extensive sales network in the Americas, and our ability to offer tailored solutions at a regional level. We also invest in feed and de-feed solutions to balance market capacities and are expanding our TCM presence in the region. Our strong connections with key forwarders and the use of advanced revenue management tools are crucial in maintaining our competitive edge.”
Changing conditions
The US consistently monitors and updates regulations, particularly those related to security through the Transportation Security Administration (TSA). Changes in TSA regulations, such as enhanced cargo screening and security protocols, can present challenges for air cargo operators.
However, the industry has demonstrated an ability to adapt and reorganise effectively to meet these evolving requirements, ensuring compliance while maintaining efficient operations.
“Miami International Airport (MIA) has become increasingly important as a hub, particularly with the growth of South American markets in recent years,” Ortega outlined. “This trend is likely to continue as some legacy carriers have redirected their freighter operations from South America to Asia, increasing the need for alternative solutions through Miami.”
“With our extensive experience, ECS Group has proven its ability to adapt to varying market conditions while maintaining a strong commercial presence and diverse service offerings,” Thominet concluded. “We believe that the industry is entering a new era, driven by digitalisation, which will enhance efficiency and unlock numerous business opportunities.”
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