Mexican express market hit by weaker demand

The Mexican express market is starting to experience the impact of falling US demand and rising prices driven by higher fuel surcharges, according to a recent newspaper report. DHL is meanwhile pledging further investment in Argentina.

In Mexico, which has strong trade links with the USA, air cargo volumes dropped by 12.9 pct in the first quarter of 2008, the Reforma newspaper reported. Mexican airlines saw a 33.8 pct fall in their domestic volumes, although their international shipments rose by 18.4 pct, it said, citing figures from the Mexican civil aviation authority.

International airlines, including FedEx and UPS, suffered a combined 15.4 pct declines in volumes, it added. FedEx suffered a 73 pct decline in Mexico volumes while UPS had a 9.1 pct drop, according to official figures.

Customers started to switch business away from air transport rather than pay higher prices resulting from the rapid increase in fuel surcharges, the newspaper said. It cited UPS manager Miguel Trejo as saying that the situation was “stable” until now. But he added: “There are certain reductions in the growth expectations, however, and we are staying alert to market behaviour.”

In Argentina, in contrast, DHL Express has announced that it is maintaining its leadership of the international express market, with market shares of about 50 pct for express exports and 30 pct for imports.

Roger Crook, CEO DHL Express, International Americas, said on a recent visit to Buenos Aires that DHL would continue to invest in the market to offer customers the best possible service and a wide range of products. DHL Argentina has six operational centres linking the major cities, and operates with 90 vehicles, which it described as 30 pct more than the combined vehicle fleets of other international express operators.

The Mexican express market is starting to experience the impact of falling US demand and rising prices driven by higher fuel surcharges, according to a recent newspaper report. DHL is meanwhile pledging further investment in Argentina.

In Mexico, which has strong trade links with the USA, air cargo volumes dropped by 12.9 pct in the first quarter of 2008, the Reforma newspaper reported. Mexican airlines saw a 33.8 pct fall in their domestic volumes, although their international shipments rose by 18.4 pct, it said, citing figures from the Mexican civil aviation authority.

International airlines, including FedEx and UPS, suffered a combined 15.4 pct declines in volumes, it added. FedEx suffered a 73 pct decline in Mexico volumes while UPS had a 9.1 pct drop, according to official figures.

Customers started to switch business away from air transport rather than pay higher prices resulting from the rapid increase in fuel surcharges, the newspaper said. It cited UPS manager Miguel Trejo as saying that the situation was “stable” until now. But he added: “There are certain reductions in the growth expectations, however, and we are staying alert to market behaviour.”

In Argentina, in contrast, DHL Express has announced that it is maintaining its leadership of the international express market, with market shares of about 50 pct for express exports and 30 pct for imports.

Roger Crook, CEO DHL Express, International Americas, said on a recent visit to Buenos Aires that DHL would continue to invest in the market to offer customers the best possible service and a wide range of products. DHL Argentina has six operational centres linking the major cities, and operates with 90 vehicles, which it described as 30 pct more than the combined vehicle fleets of other international express operators.