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.”