Express option shines in stagnant airfreight market

The Durban airfreight industry is faced with the additional disadvantage of no direct flights for international cargo. JOY ORLEK AS THE strong rand continues to batter airfreight exports and the rising fuel surcharge adds a further negative dimension, the Durban airfreight industry is faced with the additional disadvantage of no direct flights for international cargo. Little surprise then that the market is described by many as stagnant. “Exports started taking a dip from early last year and we haven’t seen much growth,” says Durban-based Röhlig Grindrod airfreight branch manager Deon de Wet. The company has for some time been strongly involved in exports into Africa and the Indian Ocean Islands, but several suppliers are now switching their sourcing to Europe which has become a cheaper option than South Africa. While these are factors that are affecting the airfreight market in general, in Durban the challenges are multiplied. “We’re not only competing against Johannesburg International Airport, which is the largest airport in Africa, but also against Africa’s biggest sea port on our doorstep,” says De Wet. “Shippers are doing all they can to maximise on price and therefore often truck their cargo to Johannesburg to cut down on some of the costs and risk factors. Damage or pilferage to goods is a reality where additional handling is required so freight forwarders ty to cut down on any additional handling as best possible. With Customs EDI now on stream, consignments can also be cleared through JIA customs far easier than before,” he said. The type of aircraft on the domestic route to Johannesburg has also not helped the Durban airfreight fraternity. “Over the past five years, since SAA sold off its fleet of Airbuses, there have been no wide-body aircraft flying out of Durban. These were capable of carrying pallets and containerised cargo which meant that full ULDs were built in Durban and routed direct to final destination elsewhere in the world. “We’re now forced to move that cargo by road which means additional handling and additional risk, which shippers are keen to avoid.” De Wet estimates that his branch alone has lost 35% of its airfreight export market in the past six years thanks to the withdrawal of direct international flights to Durban coupled with the scrapping of the fleet of domestic Airbuses. Most of this business still exists but is now moving either by sea or out of JIA, he says. Difficult times indeed, but this demands innovative solutions and a recent addition to the Röhlig Grindrod portfolio is a domestic express service. “It’s going extremely well,” says De Wet, “and we’re now operating just about 24 hours a day except on Sundays. The service caters for all ranges and sizes of general cargo and it’s proved to be a lucrative new source of revenue in a shrinking international airfreight market.”