Page 7 - LUA May June 2024 for Website
P. 7
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