newstodate.aero
Jul 30, 2013 (newstodate): With more than 100,000 tonnes per year, Norway's booming seafood export dominates the country's export airfreight industry - but it is no easy business..
-We are seeing an over-capacity in the ex-Norway airfreight market, driving rates down to rock-bottom levels, says Christoph Harneid, Lufthansa Cargo Country Manager Norway.
In June 2013, Lufthansa Cargo fell from its position on the country's CASS Top-10 list, barely managing a ranking as #11 with 311 tonnes after dropping 55.4 percent, y-o-y.
-Besides the IATA carriers, for instance Asiana Cargo has increased from two freighter calls since September 7, 2012, to three weekly freighter flights, and Qatar is also increasing from one freighter since January 29, 2013, to two freighters per week, in addition to Korean Air Cargo's three weekly rotations, says Mr Harneid.
-This capacity comes on top of an abundance of belly cargo capacity offered by a range of carriers and easily absorbed by the market, but at rates that leaves business with little or no margins.
-At the same time, Norwegian producers and distributors of fresh salmon are experiencing record-high market prices for the products. Yet, they are unwilling to share with other parties along the value chain including transports and logistics partners, neglecting the value of long-term commitments.
-This marks a very demanding business case, and for Lufthansa Cargo it does not make sense to fill up aircraft without any yields. Also, our freighters destined for Asia are already fully booked ex-Frankfurt with other types of European cargo yielding better revenue, so it is difficult for us to obtain and secure space on these flights under today's unhealthy climate.
-This is not to say that we are not interested in our share of the Norwegian salmon exports. We just have to identify niches or services that render this a viable and sustainable business, says Mr Harneid.
-We are seeing an over-capacity in the ex-Norway airfreight market, driving rates down to rock-bottom levels, says Christoph Harneid, Lufthansa Cargo Country Manager Norway.
In June 2013, Lufthansa Cargo fell from its position on the country's CASS Top-10 list, barely managing a ranking as #11 with 311 tonnes after dropping 55.4 percent, y-o-y.
-Besides the IATA carriers, for instance Asiana Cargo has increased from two freighter calls since September 7, 2012, to three weekly freighter flights, and Qatar is also increasing from one freighter since January 29, 2013, to two freighters per week, in addition to Korean Air Cargo's three weekly rotations, says Mr Harneid.
-This capacity comes on top of an abundance of belly cargo capacity offered by a range of carriers and easily absorbed by the market, but at rates that leaves business with little or no margins.
-At the same time, Norwegian producers and distributors of fresh salmon are experiencing record-high market prices for the products. Yet, they are unwilling to share with other parties along the value chain including transports and logistics partners, neglecting the value of long-term commitments.
-This marks a very demanding business case, and for Lufthansa Cargo it does not make sense to fill up aircraft without any yields. Also, our freighters destined for Asia are already fully booked ex-Frankfurt with other types of European cargo yielding better revenue, so it is difficult for us to obtain and secure space on these flights under today's unhealthy climate.
-This is not to say that we are not interested in our share of the Norwegian salmon exports. We just have to identify niches or services that render this a viable and sustainable business, says Mr Harneid.