The Mexican express market is starting to experience the impact of falling US demand and risingprices 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% inthe first quarter of 2008, the Reforma newspaper reported. Mexican airlines saw a 33.8% fall intheir domestic volumes, although their international shipments rose by 18.4%, it said, citingfigures from the Mexican civil aviation authority.
International airlines, including FedEx and UPS, suffered a combined 15.4% declines involumes, it added. FedEx suffered a 73% decline in Mexico volumes while UPS had a 9.1% drop,according to official figures.
Customers started to switch business away from air transport rather than pay higher pricesresulting from the rapid increase in fuel surcharges, the newspaper said. It cited UPS managerMiguel Trejo as saying that the situation was “stable” until now. But he added: “There are certainreductions 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 ofthe international express market, with market shares of about 50% for express exports and 30% forimports.
Roger Crook, CEO DHL Express, International Americas, said on a recent visit to Buenos Airesthat DHL would continue to invest in the market to offer customers the best possible service and awide range of products. DHL Argentina has six operational centres linking the major cities, andoperates with 90 vehicles, which it described as 30% more than the combined vehicle fleets of otherinternational express operators.
