Airfreight industry pummelled from all sides

… as exports take a dive JOY ORLEK THE RAVAGES of the stronger rand are taking their toll on the airfreight industry which is battling to keep airborne in the face of falling export volumes. According to The Cargo Connection CEO Gerd von Mansberg, the recent perishable season was a non-event as shippers moved large quantities of perishable products by sea, benefiting from the lower freight rate. This is a growing trend particularly in the light of improved controlled atmosphere technology. In addition, he says low interest rates are making Just In Time far less of a requisite, because holding inventory is not as expensive as it used to be. That’s not good news for airfreight, says Von Mansberg, who believes that a developing country needs to live with some level of inflation. “We haven’t created any jobs, and the balance of payments (BoP) is going to hell.” A rand level of R7-7.50 to the dollar would be ideal to keep the industry ticking over, he added.