newstodate.aero
Dec 20, 2006 (newstodate): Despite the shortfall of cargo capacity after FaroeJet's grounding, there may be little hope for a Faroese freighter service.
-There is much air cargo from Denmark to the Faroe Islands but loads are thinner on the return trip, generating a significant imbalance, says Hedin Johnsen, Smyril Line Cargo manager.
-Virtually the only Faroese export commodity is fish, and with the very elaborate infrastructure based on sea transports at rates far below air cargo prospects for a freighter service, however much wished for, are dim.
-The gap between sea and air cargo rates are in the range of 5-7 Kroner per kilo, while an increase by 0.10 Kroner per kilo would actually ruin any Faroese fish export business. So it difficult to see any prospects for a pure freighter, at least under prevailing market conditions.
-Even if a freighter service would still be an attractive option, the issue is who should bear the risk - the exporters and forwarders or the potential operator? As long as the market is well served by sea transportation at practically the same lead-times thanks to a sophisticated infrastructure I cannot imagine the shippers and forwarders to venture the risk, says Mr Johnsen.
Over time several parties have worked hard to identify the market for a freigher service, including Maersk Air Cargo before its pull-out from the Faroese market by the end of October, 2004.
Since then the market has been served by belly capacity only on Atlantic Airways and, till last weekend, FaroeJet.
-There is much air cargo from Denmark to the Faroe Islands but loads are thinner on the return trip, generating a significant imbalance, says Hedin Johnsen, Smyril Line Cargo manager.
-Virtually the only Faroese export commodity is fish, and with the very elaborate infrastructure based on sea transports at rates far below air cargo prospects for a freighter service, however much wished for, are dim.
-The gap between sea and air cargo rates are in the range of 5-7 Kroner per kilo, while an increase by 0.10 Kroner per kilo would actually ruin any Faroese fish export business. So it difficult to see any prospects for a pure freighter, at least under prevailing market conditions.
-Even if a freighter service would still be an attractive option, the issue is who should bear the risk - the exporters and forwarders or the potential operator? As long as the market is well served by sea transportation at practically the same lead-times thanks to a sophisticated infrastructure I cannot imagine the shippers and forwarders to venture the risk, says Mr Johnsen.
Over time several parties have worked hard to identify the market for a freigher service, including Maersk Air Cargo before its pull-out from the Faroese market by the end of October, 2004.
Since then the market has been served by belly capacity only on Atlantic Airways and, till last weekend, FaroeJet.