Low rates a problem for charter into Africa

The air cargo charter market in SA is suffering from aircraft supply exceeding regional demand, according to Franco Mariotti, operations and sales director of Avient, an associate of the global R&L Aviation Agencies operation. On the likes of the Far East to US and the Far East to Africa cargo markets you get “top dollar” rates, he told FTW. But the local cargo charter market – mainly into the rest of the African continent – is very difficult at the moment with the low rates on offer. “Rates like the 40 US cents per kilogram into Nairobi are just too soft to be able to cover the costs of charters,” Mariotti added. “And the scheduled airline carriers can always offer better prices, being able to subsidise their cargo rates from the passenger element.” Also, the mining and telecommunications industries – previously the big business for cargo charters – are also running out of steam. And even on the parts replacement market that still exists, Mariotti reckoned that seafreight was becoming a more and more popular alternative. Throwing another spanner in the works of the direct charter airline/ user relationship is the emergence of an everincreasing number of “charter brokers” touting “the cheapest rates” in the market. “With their offices being the cell-phone system, they run as low-cost businesses, and can always get between the charter operator and his previously direct customers,” Mariotti said.