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Rising demand challenges space availability

08 Apr 2024 - by -
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The airfreight industry saw a significant surge in activity during the peak season of 2023, marking a notable rebound since the onset of the Covid-19 pandemic. This resurgence was attributedprimarily to the increased rotations by airlines, which helped to reduce rates effectively and fostered a favourable environment for airfreight growth.According to Milton French, senior vice-president: Africa at Air Menzies International (AMI), demand from retailers also played a role as shelves were finally replenished. This drove up demand for airfreight and resulted in positive growth for the sector.“We are witnessing a continued positive trend in 2024, marked by a notable export increase,” he told Freight News. “The conversion of sea freight to airfreight, driven by port congestion issues, has favoured our sector. “Moreover, there has been a distinct rise in exports of perishable goods. This was particularly evident in the surge of f lower exports on Valentine’s Day. “Exports into West Africa in particular continue to see growth. The mining sector is also making a comeback.”French said AMI was continuing to develop consolidation routes to and from specific origins and destinations to reduce rates for its clients. “We have included additional suppliers in our click2ship express product to offer our clients cheaper rates and more options. Increasing cold-storage facilities at our Cape Town and Johannesburg branches has allowed us to improve our offerings. The construction of our off-bond facility at Sky Park has been completed, and registration is being finalised.”Asked about challenges, French said the upselling of airfreight rates by the airlines remained a concern, particularly when the service did not match the rates. “Airfreight space is also very restricted and sometimes difficult to come by. Finding space for our ever-increasing perishable products is particularly challenging.”He said changes worldwide in compliance made it more complex to book, prepare and send products. The increasing number of restrictions placed on products by many airlines was not helping the situation, said French, adding: “Training, maintaining and retaining staff in the current environment is also difficult and can significantly impact operations.”In conclusion, he said, the opportunities far outweighed any challenges in the airfreight sector. “The early Chinese New Year has boosted exports, while the growth in perishables remains steady. Ongoing conf licts in the Red Sea and port congestion are driving more cargo to be sent via airfreight, setting a promising tone for increased volumes this year.”

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April 2024 Compendium

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