Airfreight capacity constraints persist

Capacity constraints on import and export routes are putting a “massive strain” on the airfreight industry, and with peak season expected to come earlier again this year, neutral consolidator CFR Freight is focusing on a number of solutions to firm up space on key trade routes.

CFR airfreight general manager Stephen Bishop told FTW that given the current capacity constraints – and depending on client expectations around transit times – many key routes for general cargo on imports and exports were subject to upselling from carriers to get cargo moving sooner.

“Airfreight is a premium service but on the routes where we don’t have hard block agreements with carriers, general cargo transit times are under pressure with a dynamic pricing model on many routes. We mitigate this where we can but the reality is that the whole industry is feeling the pinch right now.”

He said airfreight customers could use information provided by CFR’s WebCargoNet multi-tool system at the time of quoting and booking to give important feedback to their own clients which ensured all expectations were aligned in order to avoid potential conflict down the line.

He described the WebCargoNet system as a “unique tool for freight forwarders”, providing a secure gateway to all airfreight market rates that were centralised and accessible on a 24/7 basis.

“The system helps the customer capture all of their promo, contract and market tariffs for all of their carriers around the country onto an online platform,” Bishop explained. Airfreight rates and availability were immediately accessible, he added.

Bishop said CFR’s airfreight division had seen a “phenomenal start to the year” with each branch around the country showing “impressive growth” on imports as well as exports.

“Our Durban route has seen airfreight more than double,” he told FTW.

INSERT

General cargo transit times are under pressure with a dynamic pricing model on many routes. – Stephen Bishop