Air cargo feels the heat

Razor-thin margins
The combined strategy of deploying passenger aircraft, partnering with rivals, and hubbing through western Europe may seem convoluted. But for a sector that operates on razor-thin margins, the overriding priority is maximising efficiency.

Belly space increases in fixed amounts as airlines deploy additional passenger flights, and with average global cargo load factors below 50% the industry is working to make optimal use of available capacity before looking elsewhere. Happily, from the customer’s perspective, the precise manner in which goods are routed is of little concern. 

“If you’re a passenger you might care a lot about being in a nice shiny new plane,” Snell notes. “But if you’re moving a box of lychees, you’re really not that worried … The key things for African customers are reliability, operational performance, frequency, price, and point-to-point network connectivity.”

Although Europe’s legacy carriers stand to benefit from growing trade between Africa and the rest of the world, it would be wrong to understate the potential spoils for other operators. In addition to burgeoning cargo flows through Middle Eastern hubs, home-grown African airlines are also reaping rewards.

Ethiopian Airlines, Africa’s largest cargo operator, currently transports 180,000 tonnes of cargo a year – a figure which it plans to grow to 820,000 by 2025. In a vote of confidence for both the global economy and Africa’s potential, the airline expects its six-strong freighter fleet to reach 15 aircraft over the same time-frame. Smaller African players are also finding a niche. Last year fastjet signed a deal with BidAir Cargo to carry freight on its three-aircraft fleet, joining more than a dozen well-established partners. This year has meanwhile seen the birth of a new African cargo carrier: Khuphuka Kings Airways.

Although IATA is urging caution, the industry group nonetheless says global air freight markets “showed slow and steady improvement throughout 2013”. The spoils of greater trade may not be spread equally around the world, but a combination of local and foreign operators is boosting mobility of African exports across the continent and beyond.