CHEP lands LATAM for outsourced ULDs

LATAM Airlines Group has awarded the management of its containers and pallets to CHEP Aerospace Solutions, the outsourced unit load device (ULD) specialist.
The five year agreement will see CHEP managing one of the largest outsourced ULD fleets in the industry, said the two companies in a joint statement.
CHEP, following its usual business model of pooling airline assets, will buy LATAM’s existing 13,000 ULDs and start management operations next month (September).
As part of the agreement, CHEP will have ULD management staff in Santiago, Chile, and São Paulo, Brazil, as well as opening a regional operations centre in Miami, 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.”
The Latin American carrier said that it will be able to operate with approximately 30% fewer ULDs as a result of the CHEP outsourcing agreement.
CHEP Aerospace Solutions president Ludwig Bertsch, said: “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.”
Picture caption: LATAM and CHEP contract signing ceremony: Julian Diaz (VP Operations Planning and Continuous Improvement, LATAM), Dr. Ludwig Bertsch (President, CHEP), Carlos Larrain (Senior VP Operations and Services, LATAM), Orlando Gaete (Senior Manager Operational Support, LATAM), Adam Barrington-Spencer (Head of Sales and Account Management, Americas, CHEP), Don Jacobs (Director, Sales, Marketing and Account Management, CHEP) (from left to right)