Growing airfreight demand as shippers delay orders

The geopolitical
instability in South
Africa, which has led
to a fluctuating return
of earnings (ROE)
for many companies,
has impacted
ordering
patterns,
says Rara
Avis Freight
& Logistics
managing director, Judy Everitt.
“Clients have been delaying their
orders this year and so shipping has
become more time-critical again,”
she told FTW, and this has seen an
increased demand for airfreight over
seafreight for inbound cargo.
For exports, Everitt expects the
International
Maritime
Organisation’s
Safety of Life at
Sea (Solas) verified
gross mass (VGM)
to be the single
biggest logistics
challenge faced
by the freight
industry over the
next six months.
“I think the forwarders and
clearing agents need to be educating
their clients better,” said Everitt,
pointing out that organisations such
as the South African Revenue Service
(Sars), the department of trade
and industry (dti) and the various
business chambers needed to compile
a list of every exporter in the country.
“That list then needs to be sent
through to the verification agencies
to consult with the clients/exporters
directly,” she said.
In light of increasing regulatory
requirements across the supply chain,
including the
VGM regulation,
Everitt said
that technology
could play an
increasingly
stronger role
to manage
the “complex
relationship”
between the
manufacturer, shipper and and user.
“All the big players are investing
in technology – and Uber having
entered the market recently with
its small parcel collection, tracking
and delivery application has set the
trend,” she added.
INSERT & CAPTION
Shipping has become more
time-critical.
– Judy Everitt