Upbeat outlook for express sector

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.’