As spiralling costs and a capacity squeeze continue to dominate the airfreight market, competitive rates have never been more critical.According to Paul Danvers, import development consultant at Groupair South Africa, few companies have not been impacted by the current operating environment.“The increase in airline costs since the onset of Covid has put pricing under pressure and the race is on to find optimum rates for customers. We have all been affected,” he told Freight News. “The increase in rates also means thinner margins. Supply has dropped faster than the increase in demand, hence the rates are in a state of f lux.”With no sudden changes in f light availability expected soon, the ability to negotiate competitive rates will remain key.He said not a single operator was not fighting for improved rates and space at present. “It is now about providing even better service levels with fewer overheads. Cost pressures on the end users will continue to place pressure on service providers for the foreseeable f uture.”Danvers said volumes, however, had increased substantially. “Although the industry has experienced an upswing, Groupair is seeing growth levels above the industry trend. We put this down to having the ability to find solutions for our customers.”In the past six months, the company launched a global import product as well as a dedicated weekly consolidation out of the United Kingdom. “Our operation has also been bolstered with additional manpower. Within the organisation, we have put a strong focus on service levels.”It was about providing services that covered the full spectrum of customer needs, said Danvers. “That is the ability to meet both import and export expectations. Included must be the ability to find solutions for customers.”According to Danvers, the company has reported a positive year-on-year weight and revenue growth for 2021 so far. The focus for the remainder of the year is to maintain this growth.
