Rising costs challenge air cargo

AMID THE doom and gloom of the global economy, the good news at least is that the air cargo market remains alive and dynamic, says World Air Cargo Organisation (Waco) board chairman, Wibo Aris. In his welcoming address to delegates at the “Waco System” 2008 annual general meeting in Cape Town last week, the freight expert acknowledged that South Africa, in addition to fulfilling a leading role as the most important hub for a great part of Africa, was also playing a key stabilising role in the continent’s political and economic arena. Pointing to recent unsettling banking and highly volatile stock exchange scenarios globally, Aris said: “Like many other countries, South Africa cannot escape from this reality. Aris noted that drastic global currency fluctuations had created considerable changes in transport flow trade patterns but he said Europe’s internal market remained strong, very well developed and stable enough to absorb more than 80% of the inner- European export market. He also drew attention to the growing move to ocean freight, due in part to the introduction of mega-container vessels able to carry goods more competitively than ever before. “Air carriers are being hit more and more by the imbalance in trade and rising fuel prices,” he said, “resulting in a quadrupling effect on the operating costs.” The Waco System AGM was hosted by exclusive South Africanbased member, WorldNet Logistics at the Westin Grand Hotel.