Congestion and slow-throughput capacity at South Africa’s ports are expected to create strong demand for inbound and outbound airfreight in the first quarter of 2024.
But cargo uptake for imports and exports is complicated by rising airline rates and capacity issues at OR Tambo International Airport, says Jade da Costa of Aero Africa.
However, the chief commercial officer at the neutral wholesaler believes they are well positioned to absorb demand.
“We’re in a good place and can do a lot more shipments. Because of the volumes we are handling, we're also in a good position to negotiate with the airlines.”
Da Costa says carriers realise the benefit of having a long-term cargo operator interested in sustaining airfreight capacity through block space allocation (BSA).
And although there’s financial risk attached to BSA agreements, securing continued cargo movement on behalf of their clients is worth it, he says.
“We want to take as much capacity as possible and are prepared to take hard allocations per routing, whether it’s daily or weekly.”
That’s the position Aero Africa wants to be in, Da Costa says, guaranteeing space for shippers exposed to what’s happening at the ports.
Whereas mid-year airfreight volumes were down, and for the most part remain globally depressed because of ocean rates decreasing following post-Covid normalisation of the liner trade, South Africa’s air cargo sector is surging.
“And it’s all because of what’s happening at the ports,” Da Costa says.
From pharmaceuticals to perishables and even automotive freight, Aero Africa is receiving strong interest.
“General exporters, for example, are all looking for more capacity at the moment.”
Shippers from the country’s automotive industry, he says, usually relying on ocean freight, have over the last few weeks been making enquiries to move cargo by air, contributing to a significant increase in volume.
“These guys have plants and production lines to run, export markets to reach and they turn to us because of what we’re seeing at the ports.
“Say it’s four containers. That’s 80 tonnes, which for us is a lot when converted into kilograms.”
