CHEP will acquire LATAM’s existing 13,000 ULDs.
LATAM Airlines Group, Latin America’s largest airline company, has awarded the management of its containers and pallets to CHEP Aerospace Solutions, the leading global provider of outsourced Unit Load Device (ULD) management and repair solutions.
This new agreement will see CHEP managing one of the largest outsourced ULD fleets in the industry, and will meet LATAM’s ongoing objective to deliver operational efficiencies. Following the acquisition of LATAM’s existing 13,000 ULDs, CHEP will start operations in September 2016. As part of the five-year agreement, CHEP will have ULD management staff in Santiago, Chile, and São Paulo, Brazil, as well as open a regional operations centre in Miami, USA, to support ULD management functions across the Americas.
LATAM Cargo Senior VP Operations and Services, Carlos Larrain, said: “The management of the company’s ULDs is a critical business activity, and the decision of LATAM Airlines Group to outsource to CHEP has been preceded by an in-depth due diligence process and detailed analysis of several ULD management options offered in the industry. The unique capability of CHEP to combine ULD management with its global ULD repair services was the decisive factor.
“We chose CHEP’s hybrid ULD solution given that the containers are part of a dedicated, co-branded fleet retaining weight savings, and the pallets being supplied from CHEP’s pool. Thanks to CHEP’s network synergies and lean business model LATAM will be able to operate with approximately 30% fewer ULDs. This considerably reduces operational costs and improves efficiencies, allowing the company to focus further on its clients’ needs and providing the highest level of service in the industry.”
CHEP Aerospace Solutions President, Dr. Ludwig Bertsch, said: “With great honour comes great responsibility and we are committed to providing the highest level of service to LATAM as well as to all our customers. With LATAM’s dense network in South America, CHEP now serves even more airports on all continents.
“The participation of such a strong airline in our unique ULD pooling model will provide further synergies and more benefits for all our customers which confirms that sharing standardised assets across the industry drives cost savings and improves efficiencies. We look forward to building a successful partnership with LATAM for many years to come.”