newstodate.aero
Nov 14, 2013 (newstodate): Life is difficult for cargo GSAs in the Baltic market - and this year's increases in security and fuel charges have not eased their plights..
-We have definitely seen volumes down on all our airline principals here in the Baltic market, says Maanus Matlik, managing AirProxy with offices in Tallinn, Lithuania, and Riga, Latvia.
AirProxy serves SAS Cargo, Lufthansa Cargo, Czech Airlines Cargo, Singapore Airlines Cargo at Tallinn, and Coyne Airways.
-What hit the head on the nail was the introduction in 2013 of security charges based on chargeable weight. This hits comparatively harder on smaller shipments of light cargo that on heavy shipments. And in these markets, shipments mostly fall within the first category. Actually, these charges may run as high as 30 percent with certain carriers.
-The net result has been that shippers and agents frequently chose trucking solutions to other airports, accepting the longer lead-times where feasible. And this has resulted in a very challenging year for us all.
-Today, air cargo business is no more a people-to-people business. Everything is about rates - and the competition is fierce, leaving margins thin for agents, GSAs and airlines alike. What we can do in this situation is uphold our levels in service quality and seek to add value to our services like arranging trucking solutions, helping out with paper work etc. But it does not compensate, of course, for the general decline in volumes and business.
-But AirProxy is firmly established in the market and we will see this period through as well, says Mr Matlik.
-We have definitely seen volumes down on all our airline principals here in the Baltic market, says Maanus Matlik, managing AirProxy with offices in Tallinn, Lithuania, and Riga, Latvia.
AirProxy serves SAS Cargo, Lufthansa Cargo, Czech Airlines Cargo, Singapore Airlines Cargo at Tallinn, and Coyne Airways.
-What hit the head on the nail was the introduction in 2013 of security charges based on chargeable weight. This hits comparatively harder on smaller shipments of light cargo that on heavy shipments. And in these markets, shipments mostly fall within the first category. Actually, these charges may run as high as 30 percent with certain carriers.
-The net result has been that shippers and agents frequently chose trucking solutions to other airports, accepting the longer lead-times where feasible. And this has resulted in a very challenging year for us all.
-Today, air cargo business is no more a people-to-people business. Everything is about rates - and the competition is fierce, leaving margins thin for agents, GSAs and airlines alike. What we can do in this situation is uphold our levels in service quality and seek to add value to our services like arranging trucking solutions, helping out with paper work etc. But it does not compensate, of course, for the general decline in volumes and business.
-But AirProxy is firmly established in the market and we will see this period through as well, says Mr Matlik.