As the world continues to recover from the unprecedented challenges posed by the Covid-19 pandemic, hopes are high in the airfreight sector for a revival in the fourth quarter of the year. Industry experts and analysts anticipate a surge in demand, bringing much-needed optimism to the aviation industry.According to Paul Danvers, commercial director at Groupair SA, improved demand is expected to continue to grow leading up to year-end. This is primarily due to the impending need for urgent order fulfilment, among other contributing factors, which in turn will ease some of the pressure the airfreight sector has been facing.“International airfreight demand has dwindled, a trend mirrored here in South Africa. This decline is not isolated, given the global economy's unstable nature,” he told Freight News.“The persistent challenge of high inf lation has also cast its shadow over the world economy and trade. In the face of these limitations, however, opportunities arise for wholesalers like us, providing SME forwarders with a global network to serve their customers.”He said Groupair had launched a number of products over the past year, aligning with their ongoing strategy to continually enhance their offerings. “We have also set up regular consolidations from Europe and Asia for import cargo and developed a market-leading position on exports to many key African markets. Furthermore, Groupair has extended its global presence by inaugurating new offices across the world, recently in the United Kingdom. With our expansion continuing in the UK, we are actively engaged in similar endeavours in the United States and the Middle East. Additionally, we are reinforcing vital partnerships in Hong Kong and China.”Danvers said there was a growing need for oil and gas as well as mining equipment in Africa, while the perishable market continued to go from strength to strength as global demand was on the increase. “These developments have resulted in heightened activity along very specific trade routes. Moreover, as additional capacity re-enters the market, coupled with price reductions, South African goods and produce are becoming more competitive on the global stage.”Danvers said on the downside high exchange rates continued to pose a challenge to imports although they did benefit exporters.“The decrease in sea freight rates has prompted a partial shift in the preferred mode of transport, with cargo now returning to the ocean. Carriers are gradually restoring network capacity, alleviating the previously high rates. Nevertheless, it's worth noting that direct f lights continue to face payload restrictions.”According to Danvers, it is clear that economic demand will remain a crucial driving factor, alongside South Africa's traditional industries, which focus on perishables and the manufacturing sector. Achieving rate stabilisation and ensuring access to available capacity will be pivotal in maintaining a well-balanced market. Notably, this year has seen the most significant growth in capacity since 2019. “The demand for goods going into Africa is on the rise, with a parallel increase in the demand for perishable products in international markets. Our concerted efforts are focused on expanding trade routes both to and from Asia and Europe, leveraging our network of offices to offer exceptional products for our South African customers.”He said two critical areas that required continuous attention were currency and compliance. “Currency f luctuations had cast a significant impact on numerous sectors in South Africa, affecting our capacity to import essential raw materials. The ever-evolving global political landscape necessitates a cautious approach to navigate international trade, sanctions, and compliance issues.”Looking ahead to 2024, Danvers said Groupair was preparing for the deployment of its own bespoke operational software that will link to the legacy systems it uses. “This will allow our overseas teams to quote more quickly and update our operational information faster. Overall, it will allow us to continue to grow. We also aim to give our South African customers the ability to do their own rate lookups, allowing them to respond to their customers even quicker than they do today. We are also committed to empowering our South African customers by providing them with the capability to perform their own rate inquiries. This will enable them to respond to their customers even more swiftly than they currently do, enhancing their overall efficiency and customer ser v ice.”
