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Air Freight

Import growth opens big space for virtual carriers

28 Oct 2021
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Strong demand for imports into South Africa is boosting airfreight business, especially for independent operators.

That’s according to neutral air cargo executive Jade da Costa.

The Aero Africa director said: “We’re pushing some big inbound volumes at the moment.

“We must be doing 300 to 400 tons out of Europe every month now.”

Because of continuing recovery in response to persistent Covid-related supply chain challenges experienced globally, a big space had opened up for virtual carriers eager to seize opportunity, Da Costa explained.

“The business has very strong legs and we’re ready to provide A-to-Z solutions, no matter who takes the cargo.”

Lufhansa, KLM, or Air France – clients aren’t picky about which carriers are used, as long as their cargo is secure and delivered in the shortest possible time.

It’s also not just Europe that’s driving demand into South Africa.

Block-space booking out of Asia is riding a wave of pandemic recovery, with options out of the United States following in the wake of resurging import impetus.

“We’re trying to do something out of the US at the moment and we’ve got big agents who are supporting us – Kuehne+Nagel, DSV, all of them.

As a result of unceasing demand, increasing space requirements had put a renewed spin on neutral air dynamics, Da Costa reiterated, underscoring the need for non-carrier owners to step into the breach on behalf of shippers.

“I’m speaking to principals in Europe to see if they can put another wide-bodied aircraft into operation, securing an additional flight into South Africa.”

Thinking out of the proverbial box to bolster the potential of opportunities was, unfortunately, not boding well for middlemen, Da Costa said.

“The traction we’ve been getting from the market meant that we’ve had to open another charter desk because we find ourselves in a position where we’re not dealing with brokers, but directly with operators and aircraft owners.”

Furthermore, cutting out the middlemen and the resulting margins that used to be added to the bottom line had made a positive impact on end-user expenses, Da Costa said.

“The business we didn’t used to get is now coming our way.”

Business growth has also had an internal impact on Aero Africa.

Known for running a lean operation, the neutral air consolidator has had to ramp up staff and stock.

“We tried to avoid it but it’s exactly what we ended up with,” said the Durban-based executive who has started commuting to Johannesburg more frequently to oversee the company’s regional hub interests.

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