Air Cargo Germany rethinks SA-Frankfurt routing

Looking after the bottom line in the airfreight industry is all about balance – and that’s an issue to which Air Cargo Germany has been applying its mind. While the recent acquisition of a major shareholding in ACG by Russian airline major Volga-Dnepr translates into a more credible and stable service for the local airfreight industry, the new parent company will be assessing route profitability in the coming months. ACG operates two B747 freighters a week from Germany, “and the inbound flights are virtually full,” says Gerd von Mansberg, MD of ACG general sales agent The Cargo Connection. “But the outbound is a problem – which is why we need an intermediate African destination on the SA-Frankfurt leg.” And that’s a decision that will be made in the near future. According to Von Mansberg, the northbound contracted cargo – largely automotive-related – has been lost. Not only has seafreight taken a major share based on cost considerations, but South Africa’s labour laws have cost the industry dearly. “Motor companies have a range of models. But in South Africa, Toyota for example is only manufacturing two platforms – the Hilux and Corolla. “And because everything is so standardised and they’ve got the logistics right, there’s little need for last-minute spares.” Catalytic converters, which used to be a strong outbound commodity, now move by sea. “And we’ve lost the leather business, 50% of which has moved to Bulgaria.” The financial muscle that Volga-Dnepr brings to ACG – along with the many new destinations from Frankfurt-Hahn – is clearly a positive development for the local airfreight industry. And with 17 B747s in its fleet, it’s a substantial operation. TCC will be going all out to market the airline’s new global network opportunities from Frankfurt which include China, Armenia, Kazakhstan, India, Kenya, Sudan and the USA.