Favourable rates attract more airfreight business

Airfreight into Africa
is expected to grow
substantially in the next
few years as the continent
continues to attract interest
and investment from all
over the world.
This is according to
Johnny Reddy, export
manager of Cargocare
Freight Services, who
says volumes are already
increasing substantially.
“We are seeing growth
in the overall airfreight
market, not just in Africa.
Last year was definitely a
year of recovery following
the recession and despite
this it was a comparatively
good year. We have very
high expectations for
2011.”
Reddy says initial
figures indicate growth
of at least 20% for the
African market alone in
the next year.
“There are a lot of
infrastructure projects
under way in Africa and
we are seeing a demand
for airfreight especially
with the trend to moving
smaller shipments more
often. More companies
are keeping lower stock
inventories and preferring
to airfreight as and when
they need goods.”
According to Reddy
there is high demand in the
construction, electronic
and mining industries.
He says with security
and infrastructure issues
continuing to plague road
and sea transporters,
airfreight is benefiting as
it is a safe and reliable way
of ensuring goods reach
their destination.
“The question around
cost is also debatable as
many will say airfreight is
too expensive, but as we
are putting more capacity
on the various routes, we
are getting more favourable
rates. There are also many
variables that play a role
in determining the cost
factor and it is not always
the most expensive option
– it is a proportionate cost
relationship at play.”
Reddy says Africa, while
showing growth, needs
to be approached from a
strategic point of view.
“Risk assessments and
credit checks are extremely
important if you don’t want
to get your fingers burnt.”