Stronger rand translates into lower airfreight rates

WITH A 14.6% increase in 2003, the Cape Town-based Sturrock Shipping had an IATA airfreight export turnover of R28.8-million, and holds 19th spot in the Top 30 league. Airfreight manager Abrie Diener pointed out that the 2003 exchange rate saw airfreight getting a natural boost to its price-competitiveness. “In rand terms airfreight rates dropped 40%-50% over the previous year and this created a justifiable swing to airfreight for certain products.” The US and the Far East both showed an upturn in demand for SA exports, according to Diener’s records. For Sturrock this was realised in a growth in leather exports to the US boot-making market. “In the Far East,” said Diener, “there has been a growing demand as the economy has begun to look brighter.” But he also identified a hitch in the SA export market of animal products into Europe. “The European Union (EU) introduced a veterinary inspection fee costing (180 to (250,” Diener said. “Obviously, with this sort of extra cost, neither the buyer not the exporter wants to pay it – and a decline in exports has been the result.” But Sturrock was on a market search throughout the year for more general cargo to handle, and Diener felt that a wider spread of different commodities was eventually the happy result of this exercise.