Competitive airfreight rates could attract seafreight shipments
PORT Elizabeth air cargo companies are starting to put their weight behind the lobby for the extension of the Port Elizabeth airport runway - and point out that the going rate is well below the R10/kg quoted to a logistics task team.
The team, which has been researching the need for airfreight in order to add weight to the lobby to extend the Port Elizabeth airport runway to take Jumbo-jet sized aircraft, was quoted this rate by certain charter freight operators.
However, SAA cargo manager for the Eastern Province Kallie Hillebrand, says that local companies can negotiate rates as low as R4/kg for stand-by pallets.
He has, however, added his weight to the calls for the runway extensions, saying there is sufficient pent-up demand in the Port Elizabeth/
Uitenhage area to justify direct flights to and from Europe in wide-bodied aircraft.
He says claims by the airports company that there are 30 tons of unutilised freight capacity a day out of Port Elizabeth have to be seen in perspective.
Much of the space, he says, is not suitable for palletised cargo.
As it is pallets out of Port Elizabeth have to be repacked in Johannesburg because the narrow aircraft which usually operate on the route cannot accommodate standard pallets.
Even so, says SAA Cargo area sales manager Sheldon Matthews, airfreight can be a more cost-effective solution than seafreight for manufacturers in Port Elizabeth and Uitenhage.
He says the perception of airfreight has been skewed by the fact that the experience of most local manufacturers is limited to courier shipments - and that these carry a high premium. The logistics task group found companies were paying up to R85/kg to Europe.
This is way over what regular users would pay, says Matthews.
For example, we offer a guaranteed service to Frankfurt where we charge R28000 a pallet.
A standard 2,2 by 3,2 metre pallet standing 1,5 metres high can hold up to 4500 kilograms, which amounts to R6,22 a kilogram - for a guaranteed service, says Matthews.
And that is our standard rate for a once-off delivery.
This means that existing airfreight rates are already well below the R10/kg used as a bench-mark by the airfreight task group.
Both he and Hillebrand support the task group's finding that the absence of a direct service between Port Elizabeth and Europe is hindering the growth of airfreight.
We can't wait for the airports company to lengthen the runway. Then you'll see this place humming round the clock, says Hillebrand.
As it is SAA is operating two freighters a day out of Port Elizabeth, in addition to placing freight on the scheduled passenger flights.
Cargo out of Port Elizabeth can be in London within 24 hours.
We can also offer a charter service lifting up to 39 tons out of Port Elizabeth to any destination in the world.
What manufacturers have to remember is that with a charter you pay for a return trip. If you can come back with a load you will effectively halve the price, says Hillebrand.
The main exports from Port Elizabeth at present are fish, perishables, ostrich feathers flowers, fruit and automotive components.
Component manufacturers are switching to airfreight to meet the just-in-time requirements of their European customers.
Hillebrand says that, despite the Asian financial crisis, there is strong growth in freight to China and Korea.
BY ED RICHARDSON
