Blocked space agreements guarantee capacity from US

Wholesale airfreight consolidator AMI will focus on import growth in the year ahead, leveraging the advantages of inter-group business to grow its share of the pie, managing director Mike Todd told FTW. While he’s cautiously optimistic about prospects for 2011, he warns that the global economic picture remains fragile. “Last year we saw an improvement after the recession of 2009 – but while we may have recorded a 20% increase in volumes, this was partially offset in the export industry by the strength of the rand because we derive our revenue from conversion from US dollar airfreight rates into SA rand – and that’s based on the Iata rate of exchange for the month. “The rate of exchange has appreciated by about 15% so this was almost an offset in terms of increased volumes versus the strength of the rand.” Imports are clearly top of the agenda for AMI whose business is currently a 70/30 split in favour of exports. In advance of this shift in focus, the company has taken out airline blocked space agreements from Los Angeles, Chicago and New York – all with a guaranteed two-day transit. We are already moving five pallets a week from the various stations, Todd told FTW. Africa is also a big focus for exports – with Lagos, Nairobi, Accra, Dar es Salaam and Entebbe the main markets. The company already has offices in China, US, Australia, New Zealand and the UK and will be looking to expand in Europe while working more closely with its global office network to develop inter-office business. “One of the challenges as a consolidator is that we work with smaller agents,” says Todd. “Credit to agents is one of the main reasons why we exist and it comes with inherent risks – but we acknowledge these and take them on.” And while competitive rates based on volumerelated discounts are one of the benefits that a company with AMI’s buying power can offer its customers, Todd believes the company’s Section 108 accreditation is an additional bonus. “Effectively it means no delays to cargo because we screen all cargo entering our warehouse and we tender it as known cargo to the airline. “It involves a huge investment in CCTV, guards and sniffer dogs. “We have become the agent’s agent, providing the full spectrum of neutral airfreight import and export services combined with competitive volume-based rates. Gone are the days that an agent needs a costly infrastructure to operate – we can do it all.”