newstodate.aero
Mar 10, 2017 (newstodate): Over the last three years, SAS Cargo has seen a strong growth in its volumes of Norwegian seafood to destinations in USA and Asia.
From 6,883 tonnes in 2016, volumes in 2016 reached 15,371 tonnes including 11,766 tonnes on flights from Copenhagen and Oslo to the USA and 2,861 tonnes from Denmark and Norway to the carrier's Asian destinations.
To cater to the needs of the Norwegian seafood exporters, SAS Cargo has invested heavily in facilities, network and systems to enhance and secure quality along the entire chain of seafood logistics.
But - at the recent seafood air logistics seminar in Oslo, SAS Cargo also identified issues to be tackled to sustain a continued development.
-We operate our intercontinental flights with Airbus A340/A330 aircraft lifting about 20 tonnes of cargo. We are happy to fill the cargo space with seafood shipments, but the industry is plagued with late cancellations and no-shows that have a direct, negative influence on revenues, said Leif Rasmussen, SAS Cargo CEO.
-The absence of 4,000 kg of booked cargo per departure translates into 20 percent of aircraft cargo capacity. If 20 percent of the booked shipments do not arrive as planned, we will lift off with 20 percent of empty space. We cannot of course take in other last-minute shipments to outbalance the shortfall of booked seafood. And I can assure you that we do not make 20 percent in revenues on seafood.
-The current business model is thus under pressure. Forwarders are good at negotiating rates, but our tenderings are based on the agreed and specified volumes of shipments. If the actual volume turns out to be less than booked due to last-minute cancellations or no-shows, we suffer a loss.
-So we need action to sustain the continued service in the market. Could it be higher rates - or a tendering fee? In any case, we need to create a forum with other stakeholder in this industry to find viable solutions to the problems that also include issues of insufficient packing, bird attacks on shipments and other trouble areas, said Mr Rasmussen.
From 6,883 tonnes in 2016, volumes in 2016 reached 15,371 tonnes including 11,766 tonnes on flights from Copenhagen and Oslo to the USA and 2,861 tonnes from Denmark and Norway to the carrier's Asian destinations.
To cater to the needs of the Norwegian seafood exporters, SAS Cargo has invested heavily in facilities, network and systems to enhance and secure quality along the entire chain of seafood logistics.
But - at the recent seafood air logistics seminar in Oslo, SAS Cargo also identified issues to be tackled to sustain a continued development.
-We operate our intercontinental flights with Airbus A340/A330 aircraft lifting about 20 tonnes of cargo. We are happy to fill the cargo space with seafood shipments, but the industry is plagued with late cancellations and no-shows that have a direct, negative influence on revenues, said Leif Rasmussen, SAS Cargo CEO.
-The absence of 4,000 kg of booked cargo per departure translates into 20 percent of aircraft cargo capacity. If 20 percent of the booked shipments do not arrive as planned, we will lift off with 20 percent of empty space. We cannot of course take in other last-minute shipments to outbalance the shortfall of booked seafood. And I can assure you that we do not make 20 percent in revenues on seafood.
-The current business model is thus under pressure. Forwarders are good at negotiating rates, but our tenderings are based on the agreed and specified volumes of shipments. If the actual volume turns out to be less than booked due to last-minute cancellations or no-shows, we suffer a loss.
-So we need action to sustain the continued service in the market. Could it be higher rates - or a tendering fee? In any case, we need to create a forum with other stakeholder in this industry to find viable solutions to the problems that also include issues of insufficient packing, bird attacks on shipments and other trouble areas, said Mr Rasmussen.