As increased competition in the airfreight market puts pressure on profit margins, neutral groupage operator CFR Freight has confronted the challenge head on.
“We’re working hard to improve our pricing system,” said airfreight general manager, Stephen Bishop. “Finding the right mix of cargo along with the best solution is a common challenge,” he said. “We give our staff powerful tools that empower them to help their consolidation clients find and construct solutions that work best for them.”
For its forwarding client base, the launch last year of a third party airfreight rates management system has offered significant benefits, according to Bishop.
“By using the system, the forwarder is able to quote, find the closest airport for the shipment, have a centralised track-andtrace portal, and view all the airline schedules around the world.” But price is only part of the equation. Capacity optimisation is also key.
Bishop said that airfreight capacity had been a “real challenge” over the past six months. “But thanks to CFR’s strong relationships with cargo carriers, we’re able to negotiate the best solutions for our clients and ensure consistent volumes with key carriers throughout the year. “This is particularly relevant when the peak seasons arrive,” he said.
For import consignments, CFR leveraged its membership of the global AirCargoGroup (ACG) network, he added, where it had joint capacity agreements on major trade lanes. “This allows us to offer our customers back-to-back and express options. “Our clients generally don’t have the network that allows them global reach – and within our ACG network we give them access to what we believe is the perfect mix of price and service,” Bishop said.
Following the relaunch of its road freight service last month, CFR Freight now offers its consolidation clients a” onestop solution” for the southern African region, including named day services. Road freight manager Hilton Tait told FTW that the company’s new road freight strategy included reducing transit times by having proven systems, processes and procedures in place to eliminate border delays.
“By using a neutral partner we also help our clients protect their client base in an increasingly competitive transport space and we have developed a pricing model that leaves room for the container and freight industry to still make their margins,” he said.
Seafreight volumes – both LCL and FCL – have recorded steady growth over the past 12 months, according to CFR Group CEO Peter SchmidtLöffler.
“Business confidence in South Africa is on the rise and we are prepared for the additional influx of business,” he said. “CFR Freight is always looking at introducing additional direct export and import services to facilitate the best options on the seafreight leg for our freight forwarding and clearing agents. In this world of digitalisation, we need to “stay on our toes” at all times.”
In his view flexibility and neutrality are a big part of the company’s success formula – and that extends to all divisions, from CFR sea, air and road to ZacPak (CFS, cross dock and transport).
There’s been a steady growth in seafreight volumes over the past 12 months. – Peter Schmidt-Löffler
