Page 7 - LUA May June 2024 for Website
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the fourth consecutive month, with Africa                            reroute their ships around the Cape of
         experiencing significant expansion in March                          Good Hope instead of transiting through
         2024, The IATA figures show that African                             the Suez Canal. As a result, shippers are
         airlines saw a 14 % year-on-year growth in                           turning to air freight as a more timely
         air cargo demand in March 2024.                                      alternative for cargo bound to West African
           The growth in air cargo demand,                                    ports from the Middle East.
         particularly in Africa, has been influenced                            Air cargo plays a pivotal role in
         by various factors. According to IATA,                               facilitating trade and economic growth
         the moderate increase in global cross-                               in Africa. However, the sector faces
         border trade and industrial production   The e-commerce              significant challenges, including
         has contributed to the growth in air cargo                           inadequate infrastructure, limited air
         demand. The rise in e-commerce activity   logistics facility         connectivity, and a lack of harmonised
         has also played a significant role in boosting   is a significant    regulations across the continent.
         air cargo demand globally, including in   breakthrough for             Additionally operating an airline in
         Africa. Furthermore, a notable shift from                            Africa incurs significantly higher costs
         sea freight to air freight has been observed,   Ethiopian Airlines   compared to other regions, primarily
         especially for cargo moving from the     Group and the entire        due to the exorbitant expenses associated
         Middle East to West Africa, as shippers   African economy.           with fuel and maintenance. “The average
         opt for air freight to avoid the longer sea                          operating costs in the continent are about
         route. This longer sea voyage has become            MESFIN TASEW     4 times higher than operating in other
         necessary due to the ongoing crisis in the    ETHIOPIAN AIRLINES GROUP  jurisdictions,” states Peter Musola, Head
         Red Sea region, forcing ocean carriers to                            of Cargo Commercial, at Kenya Airways
                                                                              Cargo during the recent Flower Logistics





















































          MAY - JUNE 2024                                                                                  LUA 5
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