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.”