Solving the perennial ‘imbalance’ conundrum

“Competition for airfreight cargo is intense, even though airfreight is a ‘feast or famine’ business,” says Gordon Bevan, VP of the global route development firm ASM. Speaking at the UK-based Route Development Group’s African regional conference in Swaziland last week, he said it was more complex than for passengers. “With passengers you establish or estimate the number of people, and the airline controls the distribution. The passenger decides where to go, chooses an airline and price. The big argument with cargo is who controls the freight? A whole trail of people influence from where cargo originates, where it goes and how,” said Bevan. And with a paucity of data and answers to guide their cargo routing decisions to African destinations, Bevan said some air carriers felt the effort of setting up a route was not worth the difficulties. The “perennial problem with African cargo,” Bevan said, “is what do you put on a southbound flight? Fields full of cash crops go north but what comes south?” He said air cargo carriers “are being as creative as possible. They are trying different cargoes going to multiple stops. It’s like a tramp steamer business. A plane leaves the EU with consumer goods to the Middle East, and then Middle East goods go to African merchants. These companies are stitching together three or four contracts.” South African Airways manager for network planning in Africa and South Africa, Keith Green, said: “Passengers and cargo complement each other for us. The passengers go to a destination, determining routes. Say the passengers are going to build something. What cargo is needed for the job? Our cargo group looks into this. Our 747 to Angola carries a lot of passengers and a lot of freight, which is fresh produce – veggies, fruit – and bottled water. You have these massive companies like Total with many labourers needing to be fed and clothed. A lot of routes we fly are based on this concept – high passenger numbers and cargo volumes. “Air cargo is in demand. A lot of countries we fly to don’t have what South Africa has got. There are a lot of foodstuffs going to Zimbabwe. It’s more economical for them to fly it from South Africa. To Angola it’s goods for the offshore oil work. Zambia it’s goods for the mines. To Tanzania perishables are sent to make up for shortages of locally grown product,” said Green. There are however no open skies agreements in Africa, and this makes it very difficult for airlines to expand into Africa. “Each airline needs a bilateral company to government agreement for the number of seats and cargo,” said Green, who noted that the value of the Routes conference, which brings airport and air carriers together, is that it allows civil aviation authorities to bring airlines’ needs to the attention of their home governments.