newstodate.aero
Jul 01, 2009 (newstodate): Ex-Scandinavia airfreight capacity particularly on flights heading for destinations in the Far East is now so abundant as to render business almost hopeless for cargo GSAs in the market.
-We are now in a situation where rates are so low that they do not even cover the cost of trucking to and from airports, says an industry source who requires to remain anonymous.
-This situation is thus especially hopeless for off-line carriers in the Scandinavian markets that will require trucking by road feeder services into continental hubs.
-This makes life as a cargo GSA most precarious. Sales commissions are dwindling, and still the GSA collects surcharges and bear the costs of marketing and sales efforts including staffing of offices.
-The only way out in this situation seems to be constant efforts to identify new small business niches and potentials for in-sourcing some of the services previously rendered by other parties in the industry, he says.
-We are now in a situation where rates are so low that they do not even cover the cost of trucking to and from airports, says an industry source who requires to remain anonymous.
-This situation is thus especially hopeless for off-line carriers in the Scandinavian markets that will require trucking by road feeder services into continental hubs.
-This makes life as a cargo GSA most precarious. Sales commissions are dwindling, and still the GSA collects surcharges and bear the costs of marketing and sales efforts including staffing of offices.
-The only way out in this situation seems to be constant efforts to identify new small business niches and potentials for in-sourcing some of the services previously rendered by other parties in the industry, he says.