Growing volumes moving to Nigeria

Recognising the huge opportunities in Africa, CFR Freight has tailored an airfreight consolidation service that suits a variety of customer needs – and is reaping the rewards in the form of growing export volumes. “If you look at global airfreight markets in 2009, Africa maintained growth where more traditional regions plummeted,” airfreight general manager, Dave Graham told FTW. “Africa relies heavily upon South African exports and often the logistics of getting things there by road just doesn’t work – which means air is the only option.” Nigeria is currently the company’s top airfreight destination on the continent, with fair volumes moving to Zimbabwe, Kenya, Tanzania, Ghana and even as far north as Ethiopia and Rwanda. “We market a two-tier service,” says Johannesburg airfreight branch manager, Dave Gurney. “Customers have the choice of a name-day service, or next available uplift – it’s a very flexible offering with a rate structure to match.” And because it’s a market that’s not without its challenges, a reliable agency network is key, says Graham. “We’ve recently appointed a very good agent in Nigeria and as a result have seen volumes spiral upwards. “This has allowed us to offer a DDU/DDP (Delivered Duty Unpaid/ Paid) service, which a lot of companies are reluctant or unable to do in Africa. “We are offering this service to no less than 14 African countries and are able to do so because we have agents on that side who can recover funds.” DDU is a trend that has evolved globally over the years, says Gurney, where the shipper pays all costs up to consignee door, excluding VAT, duty and sales tax. “It’s a service we have always offered worldwide.” Another trend that has pushed up volumes for CFR is the growing number of cross-trade requests, says Gurney who along with Graham is upbeat about future growth into the region – driven in part by the World Cup. “The impact of the World Cup won’t end when final game is played,” says Graham. And CFR Freight is geared to take advantage of the many benefits that will follow.