Wholesalers feel the pinch as airfreight rates head south

KEVIN MAYHEW AIRFREIGHT RATES are still under pressure with many airlines offering reduced rates in the market, according to managing director of MMA Consolidators, Mike Todd. He said carriers entering the market were increasing capacity to major hubs like Johannesburg International Airport beyond export growth, which is still inhibited by the rand’s strength. “We as wholesalers find our revenue marginalised with reduced rates producing lower mark-ups. It is also difficult to publish a rates tariff for any fixed length of time with airline specials and fuel surcharges constantly fluctuating. “We are reaching the stage where fuel and security surcharges are almost at the same level as the freight rate on certain routes. This will stay as long as the airlines maintain a common strategy that surcharges are not to be incorporated in the freight rate. And why should they – they are non-commissionable,” he said. An association of neutral wholesalers, Air Cargo Group, was created in September 2005 and, following its inaugural meeting held in Shanghai in February, MMA was appointed the ACG’s wholesale representative in South Africa. “This increased our ability to offer wholesale rates and services worldwide. With our BEE rating due to be finalised this month, our aim is to position ourselves as a service provider of choice in the wholesale market,” he said. Fuel and security surcharges almost equal freight rate on some routes.