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Lifting lockdowns goes some way towards offsetting fuel surcharges

01 Aug 2022 - by -
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As lockdown restrictions are lifted around the world, it is hoped that the global trade recovery will spark an increased demand for air freight.According to Jarryd Niescior, regional operations manager for Aero Africa, the outlook at present is increasingly positive, with hopes particularly high for more cargo coming out of the Far East.“In line with the lockdown restrictions being lifted in Shanghai, China, we predict an increase in demand for capacity out of Shanghai. We have identified this potential need and have signed additional block space agreements BSAs with premium carriers from China to various destinations in Africa, with a prime focus on Johannesburg, in order to further extend our capacity to the South African freight forwarding market at preferential rates,” he told Freight News.However, he added, concerns over increasing fuel prices continued to plague the airfreight sector. “With continual increases in fuel surcharges, we are seeing airfreight rates on the rise. As a result, companies are forced to look for more cost-effective solutions to their logistical needs. “Our local airfreight industry is by no means immune to the effects of the increasing fuel surcharges, which are constantly being exacerbated by the ongoing war in Ukraine. As a result, we have seen shortages of aircraft fuel in South Africa, which ultimately leads to further increased rates.”Along with the prevailing uncertainty, many role players have been reluctant to commit to long-term BSAs with carriers.Aero Africa, said Niescior, had opted to sign additional BSAs with premium carriers in order to ensure it could fulfil its customers’ needs by securing additional capacity into South Africa on key trade lanes. “The local airfreight sector remains a challenging environment to navigate. We are constantly looking for creative ways to further decrease rates and increase capacity for local freight forwarders in the market.”Niescior said overall volumes continued to remain sporadic, but with positive developments such as the lockdown being lifted in Shanghai, Aero Africa was optimistic about the future.

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