Majority of industry expects air cargo growth

The majority (71.4%)
of cargo owners,
freight forwarders,
logistics service
providers and other
industry stakeholders
in the southern African
region expect to see an
increase in air cargo
growth over the next 12
months.
Participants in the
FTW airfreight survey –
conducted online earlier
this month – largely
attributed their growth
expectations to an
increased need for ‘ justin-
time’ (JIT) deliveries
on the back of too many
roadfreight delays in the
region.
“The industry has been
in a certain amount of
turmoil over the last three
years but we believe it is
finding its balance again
with shippers starting
to budget for and build
airfreight costs into the
production
of their
products,”
said Jean
Nightingale,
sales
executive
at logistics
company,
Dachser.
Gillian
Ward, line
manager
at Mitchell
Cotts
Maritime
Durban,
pointed
out many businesses
functioned on the JIT
delivery principle and any
delays would up the need
for airfreight deliveries.
Tian van der Merwe,
branch supervisor at Rara
Avis Freight & Logistics,
highlighted that many
importers and exporters
were trying to manage
their cash f low better in a
depressed economy, thus
placing smaller orders and
using airfreight because of
the smaller consignments
and/or urgency.
The limitations of other
modes of
transport –
seafreight,
road and
rail – were
highlighted
as a reason
that his
company
was
focusing
more on
airfreight,
according
to Shane
Govender,
assistant
general
manager at Toyota Tsushe
Africa’s auto logistics
department.
Increased f lights –
especially in Africa – as
well as innovative routings
were highlighted by
owner of Mercury Freight,
Margrit Wolff, as some
of the opportunities that
could boost airfreight
volume growth.
Bradley Francis from
Santova Logistics and
Mike Westcott from
import/export company,
Bamic Enterprises,
both commented that
consolidation of airfreight
services – at lower prices
– could also be seen as an
opportunity to grow air
cargo volumes.
Terry Gale, MD of
Gale Lotheringen Freight
Consultants (GLFC),
said that improved direct
airfreight links into Cape
Town had contributed
to a growth in air cargo
volumes.
The 28.6% of survey
respondents anticipating
a decrease in air cargo
growth blame this on an
increasing global and
regional economic slump,
as well as an increase in
airfreight rates.
Most blame overcapacity,
rising fuel prices,
an increased market
demand and undercapacity
in certain regions
as the biggest factors
affecting airfreight rates.
“We have seen some
carriers increasing their
rates already. While there
is an over-capacity issue
which is driving rates
down, airlines will not
survive if they keep f lying
at the ridiculously low
rates we have seen over the
past year. All we want is
stable, fair rates for all,”
said Eugene Duvenage,
airfreight export manager
at Röhlig Grindrod
Logistics
INSERT & CAPTION
Improved direct
airfreight links into
Cape Town have
contributed to a
growth in air cargo
volumes.
– Terry Gale