newstodate.aero
Mar 25, 2010 (newstodate): While recovery is emerging in the airfreight markets, times are challenging for forwarders on a new level.
-We are seeing airlines gradually increasing their air cargo rates schemes, and this is perfectly understandable as they must seek revenues to cover up for the losses incurred during the recent downturn and balance costs of operations, says a leading Nordic airfreight forwarder.
-While everyone acknowledges this logic, shippers and buyers of capacity are seeking protection against this rising rates level by demanding increasingly long-term contracts with their forwarders. Instead of shopping around for best offer on a short-term basis as was the practice during the crisis period, they now seek contracts based on the current low levels to last for one or even one-and-a-half year to hedge themselves against the coming rates hikes.
-This may also be a logical response seen from their perspective. But for the forwarder, squeezed in between providers and consumers of capacity this is a most difficult situation given the tough competition in the market for freight forwarding, says the forwarder (whose identity is of course known to newstodate).
-We are seeing airlines gradually increasing their air cargo rates schemes, and this is perfectly understandable as they must seek revenues to cover up for the losses incurred during the recent downturn and balance costs of operations, says a leading Nordic airfreight forwarder.
-While everyone acknowledges this logic, shippers and buyers of capacity are seeking protection against this rising rates level by demanding increasingly long-term contracts with their forwarders. Instead of shopping around for best offer on a short-term basis as was the practice during the crisis period, they now seek contracts based on the current low levels to last for one or even one-and-a-half year to hedge themselves against the coming rates hikes.
-This may also be a logical response seen from their perspective. But for the forwarder, squeezed in between providers and consumers of capacity this is a most difficult situation given the tough competition in the market for freight forwarding, says the forwarder (whose identity is of course known to newstodate).