CT shippers expect capacity squeeze

The termination of direct flights between Cape Town and London by South African Airways will have a negative knock-on effect on the freight industry on a route where capacity is already at a premium, says Linda Newby, manager of Turners Shipping in Cape Town. Customers whose airfreight shipments are time-sensitive will be most affected, she added. “The food industry relies on airfreight for bringing in ingredients and additives for production,” she told FTW. “The spares industry, such as ships’ spares, will also feel the impact.” According to SAA, which will withdraw from the route from the beginning of August, shrinking passenger demand has resulted in losses and the airline will therefore be deploying the aircraft on more lucrative routes. “We are going to have to be more creative in finding solutions for our customers,” said Newby. “This is certain to push up prices in an already challenging economic climate.” Passengers flying from London to Cape Town will be routed via Johannesburg’s OR Tambo International airport, and it is expected that SAA airfreight will follow the same procedure. “We will have to wait for SAA to publish the tariffs for the re-routed freight to see what the financial implications will be,” said Newby. If freight has to be transported by road from OR Tambo to Cape Town it will involve additional clearing administration and costs that will be passed on to the customer, she said. “Another concern is the transport of fragile medical and other electronic equipment which is sensitive to handling. The more the freight is handled, the higher the risk of damage,” says Newby. “To supplement the announcement we have needed to increase our allocations of space from airlines flying directly into Johannesburg,” she added. Caption: Linda Newby … waiting to see what the financial implications will be.