Venturing New Horizons to Approach the Distant Corners
The increasingly tense situation between two rival countries of China and the US has given rise to ample space for perishable cargo. The African air cargo market has benefitted from it which is the main market of perishable exports.
It is interesting to know that the African Continent is rapidly transforming itself with the digital transformation by having a substantial increase in infrastructure and liberalism. Resultantly, this has strengthened the Air Cargo to Africa greatly.
This is also best suited for the Economy of the African countries which are addressing themselves by shedding the old infrastructure and way of working as well.
How Much Cargo to Africa Contributes?
Statistically seen, Africa contributes 1.7% to air cargo. Nonetheless, there is a tremendous growth of African carriers. The International Air Transport Association (IATA) takes it as the fastest growth for the last two years. Furthermore, the capacity is grown up to 17.1% due to healthy trade and investment connections.
Further to explore it, the President of ICAO Council Dr. Olumuyiwa Benard Aliu, has warned that Africa could have sustainable development only by having strong air connectivity in Africa. And it is quite obvious, he went on to emphasize that this is only possible by putting in proper and maximum investment.
How China is Boosting the Cargo to Africa
China as the strongest emerging economy of the world has benefitted this gap created in the investment and already spent a sufficient amount in the cargo sector. A big plus is the further investment from China in the cargo sector of Africa, is amounting to $60 billion. And by this investment, African countries are strengthening their infrastructure and aircraft.
This has done a great help to the cargo industry of Africa which can be seen from the efforts rendered by the main African countries of South Africa, Mauritius, Ghana, Nigeria and Ethiopia in improving the cargo facilities and concerned services. The African air cargo is benefitting a lot from it.
The meagre share of Africa in the see cargo creates a great space for further development in the Cargo to Africa sector. Having the seaports in abundance, Africa is relying greatly on its seaports. It is of great value that one-third of the African countries are landlocked and maritime is the only access to the world market.
What is being communicated?
The African countries like South Africa export diamond and gold to the industrialised countries. It is of the great value that the precious metals are carried in handbags in high security. The meagre share of Africa in world trade is widely debated and the economists argue in this regard that, this lowest share of Africa is due to insufficient income, poor geography, local barriers to international trade and increased transport cost and poor infrastructure.
The experts hold the strong view that the shipment delivery period matters a lot, the reason being, the increased shipping duration would increase the inventory process cost. For instance, sensitive goods like ornamental plants and flowers and readable material like newspapers would certainly need prompt delivery. And also, the stock in transportation should be by the needed amount.
Ground Realities and Future Expectations
The cargo industry works in associations with different stakeholders or may be termed as commercial organizations which are the main source of freight services. Sure enough, these stakeholders offer a basic and conducive infrastructure for the execution of cargo services for every operation of Cargo Company and without it, the cargo industry means nothing.
For instance first and foremost organisation with plays a major role in this context is the airports across the world which no doubt, offer the basic and spacious platform for the execution of cargo carriage and deliveries.
According to the economists, at present Africa is having 3 per cent of the UK goods but history has witnessed many ups and downs in it. It is also to mention here that machinery, precious stones, fruits, vegetables, beverages, base metals and precious stones are imported by the UK from Africa whereas the turbojets, chemicals, and machinery are imported by Africa from the UK.
On the other hand, Brexit Transit period and its impact on the Cargo to Africa is also of the great importance in the upcoming period. As the period going on in the UK about cargo industry is termed as Brexit Transit Period as the UK has decided to leave the EU in March.
A great deal of cargo is being operated between the UK and Africa by various modes like sea cargo, air cargo, or intermodal cargo depending upon the availability, choice and budget. It would be crucial to note that air cargo is costlier than sea cargo.
It is no arguing in highlighting that cultural links, bilateral relations, law systems, finance, and trade are playing the main role in strengthening the healthy relations between the African and the UK. It would be important to mention here that a diaspora of 1.9 million in Africa is playing a vital role in the UK economy.