US security measures push up demand for express services

ALAN PEAT IN THE express airfreight option, importers and exporters have a delicate juggle in deciding whether it’s justifiable. It’s difficult to justify, for example, when airfreight periods are low, according to Roland Raath, MD of Cargocare Freight Services. That’s in the January through mid-March period and again in August through mid-September when Europe goes on vacation. “Express airfreight is best utilised in peak periods or when a consignee has an extremely urgent deadline,” he said, “involving production losses or even penalties for late delivery. “This is when serious consideration must be given to international airlines offering guaranteed services.” There is a curved ball coming at importers from the USA, Raath added. “This in the shape of more stringent security measures from November 9 and the law now requiring a minimum of 24 (not 12) shipments being moved before that shipper can be declared a “Known Shipper”.” Until then they will face lengthy security delays – a mandatory 24-hours - and additional scrutiny of documents and cargo. In the justification formula, according to Raath, this will favour express freight options, as clients come under additional time pressure.