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Capacity on the rise as sea freight normalises

15 Dec 2022 - by -
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Growing its footprint and extending its reach for clients remains a top priority for neutral consolidator SACO CFR.While the airfreight sector has faced some serious headwinds since the outbreak of Covid-19 – and uncertainty regarding the current and future state of the global airfreight sector persists – the company remains relatively positive, particularly on the import side.“Based on discussions with our agents and the airlines, we are excited about our import products for the next rotation,” said airfreight general manager Jacob Pretorius. “Our goal remains to offer our customers a world-class service at competitive rates.“Airlines are starting to offer blocked space agreements (BSA) again with lower rates than over the past two and a half years. This is due to increased capacity coming into the South African market.”Megan Ekermans, a route development coordinator, said new import consolidations had been introduced out of Shanghai Pudong International Airport, London Heathrow Airport, Newark Liberty International Airport, and Paris Charles de Gaulle Airport into Johannesburg. “We also have one out of Newark Liberty International Airport into Cape Town,” she told Freight News.The biggest challenge for the airfreight sector is still the slow-down in global trade as recessions around the world affect economies. Locally, the rate of exchange remains an obstacle.“Ocean freight is starting to normalise again in terms of available capacity,” said Pretorius. “This has reduced the demand on airfreight somewhat, while at the same time we have seen that e-commerce that moves via air has also slowed down.”According to Pretorius, it has not been the easiest of operating environments, especially with dynamic rates being offered by airlines, making it increasingly difficult to quote.Ekermans said the slowdown in global commerce remained a risk, as did the South African economy. “We have some real challenges over and above the rate of exchange, such as load-shedding and the cost of fuel.”The airfreight sector, however, was one that always offered opportunity. “The Asian market is slowly starting to return to normal and that is good news,” said Ekermans. “We also have capacity at the moment, especially out of Cape Town to serve any demand.”

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