Alan peat IN THE SA-Middle East airfreight industry, load factors are running at almost full capacity – but a cut-price rate war on the trade is hammering the yields amongst the carriers, according to Ronel Mendes, international sales and marketing manager for Express Air Services (EAS). “It’s a great export market, and one with an absolute cobweb of connections to other destinations right round the world,” she told FTW. That booming market demand has attracted a whole host of Middle East carriers – all competing for shares on the route. “And,” said Mendes, “everybody has been getting cargo load factors of around 87%.” But the big problem is that the SA air cargo operators on the route are “doing themselves an injustice at the moment” by cutting air freight rates to the bone to attract extra custom, she added “Although the load factor is 87%, the yield has decreased by 37%,” said Mendes. “That means we’re working harder for less money – a most unenviable situation.” But working harder seems to have had a beneficial effect for EAS – with its contract carrier, Qatar Airways, running a load factor of 87%-95%, with times when it even bumps up to 100%. “And this,” said Mendes, “has been at the same time as Qatar has increased its schedule frequency from four to six flights-a-week.” The fierce competition has also generated a new market strategy at Qatar Airways home-base. This, Mendes told FTW, has seen the airline rapidly increasing its warehouse capacity, and more than trebling its capacity for perishable products. “That perishable facility is absolutely state-of-the-art,” she said, “with fourteen different temperature-controlled areas.” And added to that is the use of refrigerated dollies to quickly shift pallets of perishables directly from one plane to another in the world-wide distribution web. “This,” said Mendes, “gives a very quick turnaround in perishable airfreight transfers – and is how Qatar Airways is targeting all the other connections in its global flight schedule.” The final and hugely beneficial factor in the airline’s perishable transfer product is a dry-ice facility on the ramp, says Mendes. A specialist team monitors each ramp, checking the dry-ice level in each container, and replenishing it where necessary to ensure that perishable freight is managed effectively.
