Growing volumes add healthy airfreight component

KEVIN MAYHEW RECENTLY-ANNOUNCED interest rate hikes and the free-floating of the Chinese currency, the yuan, are the only potential dampeners for growth of the Chinese economy in the immediate term. Managing director of Buffalo Freight Systems, Margrit Wolff, says that higher interest rates are a new control for the Chinese economy and the non government-owned manufacturers might be more cautious about price of products and new investment. “On the question of the yuan floating against the dollar, this will have an impact on the cost of exports and imports to and from China depending on its strength or weakness. However, we believe that China will remain the factory of the world and show huge economic growth, therefore sustaining the growth in imports with South Africa.,” Wolff says. Meeting demand for Far East products has seen not only rapid growth in sea borne containers but also in airfreight. Today one in three shipments registered by Buffalo Freight Systems is airfreight. The company utilises the services of a number of airlines, but has a very strong relationship with SAA which provides a large amount of guaranteed space. “This airfreight growth has enabled us to diversify our business from a primarily sea freight orientation to the current healthier situation where we are spread over both air and sea,” she explains. But the sea alternative has not been at all sluggish – Buffalo has recorded a whopping 100% growth in container shipments over the past year using six shipping lines. This Wolff attributes to a healthy understanding of the Chinese market built over six years as well as a strong relationship with major shipping lines.