Logistics companies have expressed concern over the dramatic increase in airfreight rates. Paul Lawrence, managing director of Tigers Global Logistics in South Africa, said rates out of Asia were 150% higher than the same period last year. Just as concerning was the fact these rates were not expected to decrease any time soon.On the positive side, the industry was seeing a steady increase in capacity after a surge in volumes in December and January ahead of the Chinese New Year. There was slight concern over the closing down of factories and many companies wanting to push out orders.“Distribution of Covid-19 vaccines are also gearing up – and while this is yet to affect the airfreight cargo industry, we are going to need the capacity. Also, due to the Covax distributions, governments around the world are willing to pay more for capacity, leaving traditional airfreight customers at a disadvantage.” Freighter volumes, said Lawrence, continued to increase while there was still no increase in passenger f lights, with many f leets still grounded.In South Africa, in particular, there is concern about airfreight capacity in light of several local airlines facing closure – posing a real challenge to the freight sector. “International airlines are also continuing to cancel f lights into South Africa due to the second wave of the Covid-19 pandemic which has disrupted operations.”Lawrence, however, remains upbeat about opportunities.“Airfreight capabilities and value-added services in terms of vaccine movement are just one example,” he said. “Airfreight also has the ability to focus on niche markets to provide solutions to the likes of the arms and ammunition industry and in the transport of hazardous cargo.” According to Lawrence, returning to normal operations where capacity and rates are stable is important for the airfreight sector’s survival. Much of it depends on the ongoing pandemic.Opportunities exist for companies willing to adopt a solutions mindset and who are flexible enough to transform.– Vernon Lines“
