Roadfreight competes with air among cost-conscious customers

Ever-increasing fuel costs
have dramatically affected
the domestic airfreight
industry, according to
Llewellyn Nel, joint CEO
(sales and marketing) of the
Transit Group.
This impact has been
apparent in the group’s
domestic wholesale airfreight
division, whose customers
are from the courier industry.
“In the last year, fuel has
gone up by 54%,” Nel said.
“Fuel rates/costs are set by
the airlines, and therefore
passed on directly to the
freight/cargo companies.
“Further economic strain
on the industry has resulted
in a paradigm shift in terms
of the services and products
offered and used. Obviously
cost-cutting has been a major
focus for all involved in our
industry – for example, cargo
which may have been deemed
overnight express freight on
previous occasions now flies
at a lower-graded service.”
Furthermore economy
airfreight has now become
a roadfreight product, as
cost-savings intensify even
further, Nel added.
Predominantly, during
the last three months of
the year, an annual peak
season is expected. However,
during the past two years,
a noticeable slump has
indicated that a big part of
the airfreight product has
migrated to road, according
to Nel.
“In line with market
trends,” he told FTW,
“Transit’s vision has also
changed. The ultimate aim
is to provide a complete,
seamless, freight solutions
network. Separate divisions
now include roadfreight,
regional deliveries,
information technology
(IT) tracking, as well as
a stationery division – all
of which are added-value
services offered by the
group.”
Also, according to Nel, the
company has gone through a
major re-branding.
“It’s been more than
just new logos and smarter
uniforms,” he said. “Living
up to our new brand we
are focusing on training –
and fostering a mindset of
change. Our strategy is to
embrace the constant change
in the industry to stay ahead
of our game.”