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Upbeat outlook for express sector

24 May 2013 - by Liesl Venter
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While there may not be
much enthusiasm over
express cargo volumes –
best described at present as
stable – the industry remains
upbeat about its future.
Airfreight volumes have
clearly been under pressure,
with minimal growth in
recent times. It is estimated
the sector only saw an
average annual growth of
around 2.6% from 2001 to
2011, but according to the
International Air Transport
Association (Iata), the tide is
turning with a total airfreight
market growth of around 4%
in 2012 and more positive
growth on the cards for 2013.
While still seen as an
expensive option, experts
believe that the international
express industry is
contributing positively to
the growth of the airfreight
market as more and more
cargo owners embrace the
just-in-time concept.
According to Iata CEO
Tony Tyler, there is hope for
airfreight – and the express
market – yet.
“We have an extremely
upbeat outlook for the cargo
sector despite volumes
still being constrained,” he
recently told FTW. “We think
with the direction in which
the world is moving, taking
the globalised economy into
context, the trend of getting
goods to markets more
quickly is one that will stay.”
He said at the same time
there was more pressure on
manufacturers to respond
faster and therefore the longterm
view for airfreight in
general was one of growth.
This will impact positively
on express cargo – especially
in the light of speed of
delivery growing.
According to Eugene
Swanepoel, general manager
of SkyNet Worldwide
Express, a division of
Crossroads Distribution, the
value of goods does impact
on how they are moved.
“The value of the cargo
does to a certain extent
dictate the speed at which it
is transported. If the cargo
is of a higher value there is a
definite move towards using
express. It makes sense from
a cost and safety perspective
to move high-value goods
this way,” he says. “The
express service remains one
that is highly reliable and
therefore it is difficult to see
it not being sustainable into
the future.”
Alwyn Rautenbach,
executive manager of Airlink
Cargo, agrees saying while
volumes are not as high
as they were prior to the
economic meltdown, they are
stable at present, boding well
for future growth.
And with more routes
being opened up and
consumer demand growing
– especially in the African
context – the demand for
airfreight and the movement
of goods quickly is expected
to continue to rise.

CAPTION
‘The trend of getting goods to markets more quickly is one that will stay.’

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