question of the month
Brian Lovell, CEO of the Australian Federation of International Forwarders (AFIF) and a member of the Air Logistics China advisory board, set this month’s question
SANJEEV GADHIA CEO,
Astral Aviation
“There has been an increase in air freight volumes into and out of the African continent in 2010, especially with imports into West and southern Africa and exports of perishables out of East Africa. But the end result is that the freighter operators are not realising any substantial increase in yield, despite seeing an increase in the payloads carried. “Part of the problem can
ADRIEN THOMINET Director,
European Cargo Services
“The crisis has highlighted to airlines that they have to look at the real cost of their operations, coupled with the knowledge that over-capacity in the past has served to continuously decrease air freight rates. “The impact of the
be attributed to higher operating costs and an increase in the amount of competition into Africa. Lower pricing on bellyhold capacity and stagnant pricing for perishable exports are among the other reasons the come-back has been slow. “But Africa is well on the path to economic
“Africa is well on the path to economic recovery”
recovery, as evidenced by the stable oil prices and an increase in commodity prices – especially in West and southern Africa. “An increase in the export of perishables from East
Africa into Europe is resulting in there being more demand for air freight capacity, but these are moving at rates which are still at the levels of 2009. “Freighter airlines are operating with very
conservative strategies by ensuring that the right balance of capacity versus revenue is achieved into Africa – and I believe that genuine efforts are being made to recoup the losses of 2009. “Nonetheless, I think it will take at least two years of good profits for these carriers to make up for the financial shortfalls seen in 2009.”
downturn was so violent and unexpected, added to the fuel crisis, that airlines have no choice now but to put their rates up to the necessary level to achieve a sustainable level of profitability. This is the only way they will be able to balance the costs of their operations. “The new, most sensible
“Over- capacity in the past has served to continuously decrease air freight rates”
policy for all is to adjust capacity to the right level and to sell it at the right price, while hoping that fuel prices remain stable. But still there is also a strong imbalance in revenues in terms of regional sectors. For example, on Europe - Far East routes, the ratio on revenue is 1:10 eastbound compared to westbound. “Airlines need now to show that their operations can be profitable – or at least that they can avoid the risk of big losses. This cannot be done with rates that were too low. Also, there will be a need to clarify the surcharges policy as some airlines have dropped charges while others continue to implement a high index. “The market needs to see a transparency on the
rates policies of the airlines to make it understood by and accepted by the shipper.”
AIR LOGISTICSCHINA 41
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60