Consolidators are a bridge for small to medium-sized freight forwarders to compete globally

In the recent feature of Southern Africa’s Freight News, our very own Jarryd Niescior, general manager of southern African operations, shares his thoughts on the consolidation market.

You can get access to the full feature here:

Consolidators as enablers of market expansion.

Ongoing efforts to invest in and expand neutral consolidation products to meet current market demands have remained a key focus at Aero Africa Sub-Saharan Africa.

According to Jarryd Niescior, general manager of operations, this has included signing additional blocked space agreements (BSA) and increasing capacity with premium carriers.

Utilising technological advancements to our advantage, along with the evolution of artificial intelligence in airfreight, grants us direct access to real-time market rates worldwide and flight capacity. This capability is instrumental in bolstering our consolidation planning, which is crucial in the current market landscape,” he told Freight News.

According to Niescior, consolidators can leverage the volatile nature of global airfreight market rates using BSA contracts. This strategy enables them to provide forwarders with competitive and stable airfreight rates, effectively presenting an opportunity to capitalise on market fluctuations.

He said with the daily increase in air cargo demands, there has been a consistent rise in airfreight volumes, which is a positive sign for the sector.

“The volatile nature of global airfreight market rates at present provides us with a strategic advantage, as we can commit to rates for extended durations through our established BSA contracts with carriers,” explained Niescior. “Furthermore, the surge in airfreight demand, driven by service disruptions in the ocean freight sector in South Africa, has compelled us to innovate and offer dependable services at highly competitive prices. Moreover, there’s a growing demand for neutral wholesale services among small to medium-sized South African freight forwarders seeking a trustworthy partner they can depend on.”

When asked about challenges, he mentioned the difficulty in innovatively enhancing standard consolidation procedures, particularly in constructing multi-master airwaybill consolidations destined for multiple locations to boost volumes. This would directly correlate with increased purchasing power with carriers.

Niescior, however, emphasizes that consolidators continue to play a crucial role in the airfreight industry by serving as a bridge for small to medium-sized freight forwarders to compete globally. These forwarders may not have direct access to book with carriers at preferential rates, making the role of consolidators indispensable in levelling the playing field.

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