Low rates a problem for charter into Africa

The air cargo charter market
in SA is suffering from
aircraft supply exceeding
regional demand, according
to Franco Mariotti,
operations and sales director
of Avient, an associate of
the global R&L Aviation
Agencies operation.
On the likes of the Far
East to US and the Far East
to Africa cargo markets
you get “top dollar” rates,
he told FTW. But the local
cargo charter market –
mainly into the rest of the
African continent – is very
difficult at the moment with
the low rates on offer.
“Rates like the 40 US
cents per kilogram into
Nairobi are just too soft to
be able to cover the costs of
charters,” Mariotti added.
“And the scheduled airline
carriers can always offer better prices, being able to
subsidise their cargo rates
from the passenger element.”
Also, the mining and
telecommunications
industries – previously
the big business for cargo
charters – are also running
out of steam. And even on
the parts replacement market
that still exists, Mariotti
reckoned that seafreight was
becoming a more and more
popular alternative.
Throwing another
spanner in the works of
the direct charter airline/
user relationship is the
emergence of an everincreasing
number of
“charter brokers” touting
“the cheapest rates” in
the market. “With their
offices being the cell-phone
system, they run as low-cost
businesses, and can always
get between the charter
operator and his previously
direct customers,” Mariotti
said.