Although airfreight volumes are on an upward trajectory, local aviation commentators are adamant that SA freight rates are not rising in parallel. In the latest International Air Transport Association (Iata) figures for June, freight traffic – measured by freight-tonne kilometers (FTKs) – was well above historical trend rates of growth. Globally, it was up 26.5% in the month, and by 28.3% on the year-to-date (YTD). And Africa was an even faster growing market, having jumped by 54% in June, and by 46.3% on the YTD. According to Iata, the balance of June’s results would point to continued growth going forward. “There does not appear to be significant evidence of a loss of momentum,” it added. The statement also added that freight demand was continuing to follow economic recovery and trade patterns. Cargo on airlines in Asia- Pacific grew 29.8% yearon- year in June; 39.6% in the Middle East; and 44.9% in Latin America. While carriers in North America saw volumes grow by 24.2%, Europe was still the laggard at 15.3% – half the rate of the fastest-growing economies. But, although continental figures were disappointingly low, the big European air cargo carriers are posting operational profits. For example, Lufthansa – Europe’s biggest scheduled cargo carrier and its second-biggest airline – still managed to triple its quarterly operating profit up to June 30, and attributed it to a recovery in demand for both travel and freight transport. The biggest airline group, Air France-KLM, also swung to an operating profit in its fiscal first quarter from a steep year-earlier loss. It again pointed to a strong recovery in cargo and higher passenger figures. Its cargo unit booked an operating profit of US$14.3-million against a US$256-m loss last year, with its freight revenue surging 42.3% to just more than US$1-billion The latest report from British Airways World Cargo (BAWC) said its commercial revenue was £175-m for the first quarter of the financial year (beginning April 2010) – an increase of 36.7% against the same period last year. But, although this has seen some global firming of airfreight rates, there is still some caution in the SA market. Alwyn Rautenbach, MD of Airlink Cargo and chairman of the Air Cargo Operators’ Committee (Acoc), suggested that there was some firming in southern African rates, but there was still available capacity on the SA air trade. It’s worth waiting, he added, until the growth proves sustainable. Jeff Epstein, senior freight auditor at Safcor Panalpina, agreed – but did say that the Far East-SA trade was proving an exception, with cargo demand currently exceeding capacity growth, and rates also surging upward. Cayley Buyskes of British Airways World Cargo (BAWC) in Johannesburg, also suggested that they were still holding rates down. There had been a surge in airfreight volumes thanks to a combination of the World Cup demand and the port strike seeing a lot of cargo switch from sea to air. “But,” she told FTW, “while this would suggest there is definitely scope for rates to rise, it’s still the traditionally quiet spot of the year, and increases can wait until the peak season.” Iata showed some sympathy for this argument. “Although business confidence indicators remain relatively high,” it said, “the completion of inventory restocking, and the tailing-off of government fiscal stimulus, means entry into a new phase for air transport markets. “It is likely that this will be a phase of slower growth rather than a double dip.”
