Competition for shrinking
volumes has pushed airfreight
rates to rock-bottom levels
in a price war in which
importers and exporters are
the only winners.
For the airfreight division
of neutral groupage operator
CFR Freight, it’s business as
usual with its twice-weekly
consolidation services out of
Shanghai, Hong Kong and
Beijing into Johannesburg,
Cape Town and Durban.
The services are run
in conjunction with its
established partner, Shipco,
which has 14 offices
throughout the greater
southern China region,
providing a comprehensive
footprint in China. “We also
have a nice gateway set-up
where we hub all southern
China cargo into Hong Kong
and move central Chinese
cargo through Beijing or
Shanghai, depending on the
nature of the cargo,” says
CFR Freight’s airfreight
director Dave Graham.
“For us the market has
been stable. We’re not seeing
the same huge growth out
of China as we’re seeing
out of Germany and the
US, but volumes have been
consistent.”
China is the company’s
third-biggest import origin
behind Germany and the US.
“China to South Africa
is a very competitive lane
and we’re always trying
to match the best possible
rates with transit times and
service. And in recognition
of the needs of South African
importing agents, we offer a
30-day validity period on our
rates from Hong Kong and
Shanghai.”
According to Graham,
most of CFR’s airfreight
customers are premium
operators who enjoy access
to rates and capacity that
they are simply not able
to negotiate based on their
individual volumes.
CAPTION
Dave Graham … ‘China is thirdbiggest
import origin.’
