Consolidator sets import target

Independent consolidator CFR Freight has set a definitive growth path for its airfreight division in 2011. “Imports will be our key focus,” says airfreight GM Dave Graham. And the foundation stones are already in place. Inbound capacity over the past year has been at a premium for the entire industry, which is why CFR has taken a decision to enter into block space agreements (BSAs) on several key routes in order to guarantee space to its clients. “Existing consols coming out of the US are up and running nicely but two areas of focus will be Europe and China,” says Graham. “We have contracted BSAs out of Amsterdam and our Air Cargo Group partner, Groupair, has put in place a whole trucking network throughout Western Europe supported by offices in Amsterdam and Brussels. It’s not purely an Amsterdam product but rather a Western Europe product offering a named-day service from Amsterdam into South Africa,” says Graham. “The first week we floated this we brought in five maindeck pallets,” according to Johannesburg branch manager Dave Gurney, which is exceptional. “We have contracted on the Martinair/KLM service once a week and SAA twice a week, providing allocated capacity three times a week.” But China, says Graham, is the single biggest focus for next year. “We have a very strong partnership with NAC/Shipco and they are focused on two lanes out of China – South Africa and Australia. “And because they are run by Europeans there’s a cultural understanding and communication. “The Chinese don’t understand the need in our market for predictable rates that are valid for an extended period of time. Conversely South Africans don’t understand that the Chinese airfreight market is like a commodity – that rates fluctuate virtually on a daily basis. But because we are dealing with a European-run organisation, they are dealing with the complexities of the Chinese market and we are able to offer extended validity all-in rates out of China.” This month (January) will see the implementation of additional services to complement the existing space on Thai and Singapore Airways. “Our service from Shanghai will extend to include Hong Kong – and through our partner on that side we have origins in all major Chinese centres feeding into Shanghai and Hong Kong so we have an established network feeding southern China into Hong Kong and mainland China into Shanghai.” According to Graham, the feedback from customers has been very encouraging. “A lot of forwarders have already come on board and we’re not just signing up Johannesburg clients, but Cape Town and Durban as well.” The company’s current business mix is 70/30 in favour of exports. “We certainly won’t be ignoring exports, but in light of the stronger rand we are determined to turn that ratio around and expand our import market,” he said.