Airfreight volumes remain under pressure heading into the second half of the year, with a combination of shifting market dynamics, pricing instability and weak manufacturing output contributing to a subdued outlook.
Jacob Pretorius, airfreight general manager at SACO Shipping, said the sector was navigating a particularly challenging period.
“Airfreight is in a difficult situation at the moment,” he told Freight News.
“Ports have shown improvement in container handling over the past few months, which is instilling confidence in exporters to shift goods to ocean freight, especially when there are no tight deadlines or time-sensitive requirements.”
At the same time, airlines are moving away from traditional contract rates, instead leaning into dynamic pricing models based on real-time capacity. “This makes it harder to offer customers longer-term rate validity,” said Pretorius.
“The result is greater uncertainty for exporters and a further dip in airfreight volumes, particularly in general cargo.”
The downturn in the automotive sector is compounding the issue.
“The market in South Africa is going through difficult times, which has led to a drop in production and demand for export cargo. This has had a clear knock-on effect on volumes.”
The sector is also not expected to see any quick recovery following a decision by the US government to impose higher tariffs on South African exports. Demand for new vehicles also remains low.
Pretorius said while a slight uptick in volumes was expected towards the end of the year in line with the festive season, overall volumes were unlikely to reach 2024 levels.
“We’re staying optimistic and focused on delivering strong service to our customers. Hopefully, we’ll see an upward shift in the months to come.”
- Read the full article in our Freight Features edition on “Airfreight”.
