Perishable exporters struggle in face of escalating airfreight costs

THE CONTINUED assault on the cost of airfreight as a result of increases in the price of oil has had a major impact not only on imports, but also on export airfreight. (There had been a 50% increase in the price of JetA1 within two weeks at time of writing). The perishable export industry in Zambia is therefore in a crisis situation. Even big corporate size projects, which could until now sustain the increases absorbed since the cost of oil exploded, are struggling to remain viable. Already 80% of all vegetable exports are moved by road to South Africa and then exported by air from there. And Colin Rhoda, managing director of Zega Limited, expects this trend to continue. “This will nullify the need for perishable export facilities at LIA (Lusaka International Airport), putting many jobs in the industry in peril,” he said. "The tourist industry is also likely to suffer with reported costs in airfares rising as much as 40%." Zega Limited commenced operations in 1984 to facilitate the handling of perishable exports by air from Zambia. Originally the project was set up by members of the Zambia Export Growers' Association to kick-start the anticipated growth of the floricultural and horticultural industry in Zambia. Unfortunately the company could not survive solely on income generated from the handling of perishable exports, and operations were expanded through diversification. Zega Limited now specialises in cargo handling, customs clearing and freight forwarding and serves as aircraft handling agent for British Airways, TAAG Angolan Airline, South African Airways, MK Stabo Air, Cargolux and Zambian Airways. As a result of the diversification, Zega Limited is able to offer perishable exporters the lowest handling rates in the region. Last year it handled around 3 600 tons of import cargo while export perishables handled exceeded 11 000 tons. This comprised some 6 500 tons of exotic vegetables and 4 500 tons of cut flowers, the majority of which were exported to Europe.