Cargo To Africa

Tag: Cargo Trade

  • Cargo to Africa; Reforming Itself through the New Initiatives

    Cargo to Africa; Reforming Itself through the New Initiatives

    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.

  • South Africa, an Interesting Business Market for the UK

    South Africa, an Interesting Business Market for the UK

    Set yourself up previously for picking Africa as a Business destination

    South Africa is considered an extremely productive business destination. Particularly when we are discussing UK exchange with the area, South Africa ends up obvious. As it is the important trading partner with UK in Africa.

    This doesn’t shows that the UK isn’t in exchange with other territories as new markets are rising in the sub-Saharan area and Kenya, Nigeria as of now are in trade partner with the UK. Yet, as South Africa gets the biggest portion of the trade, and when it comes to Cargo to Africa South Africa is surely a big name in it.

    This area is rich in farming and furthermore, the location and situations for running business and trading are quite favourable which draws special attention of investors.

    Current Exports of UK to South Africa

    Africa is one of those countries who are under development and requires sources and support from outside of the country for propping things up and meanwhile, assistance is expected to improve the circumstance in all sectors. Trading is the most ideal approach to do this as you receive something of your need in return.

    At present, the main exports of UK to South Africa are oil, vehicle, machinery, pharmaceuticals, and send food items. There are many other opportunities for UK businesses in many other fields like energy, transportation, educational and medical sectors.

    Send Cargo to Africa
    Send Cargo to Africa

    As it is being said that after Brexit, there are possibilities of expanded imports of vegetables and fruits from Africa which is the interest of UK at present as their production has tumbled to a huge degree, and because of this situation, they are depending on imports for fulfilling their people need.

    How could be the Task done?

    Visiting another nation, unfamiliar people, financial system and infrastructure, all become a major obstacle. To get over these issues, UK government assigns parliamentarians from among the various political parties to lead business allocations to different nations where Britain needs to lift trading and business for two-sided relations.

    With this amenity, present making place in the new situation turns out to be simple. Same is done for Africa as well however the things keeping in mind about the region and its need.

    As public is presently aware of their decision making and purchasing power has strong now for trusting or loving an item. In this way, hitting the correct market is more than important to be effective for making good progress.

    What problems a newcomer probably could face?

    Like other regions, there are difficulties and issues that can slow down or stop your efforts of building up a business in the land. There is a high pace of unemployment in the nation and people are not guaranteed of getting a work and keeping up it for more. At that point, the destitution factor also turns into a challenge for the businessman as the purchasing power may not be as it was probable. Another major factor is the capacity storage and skill deficiency, which is there because of less chance.

    There is another issue in Africa which is lack of infrastructure that makes it hard to fit and adjust in this area. There are no strong and appropriate working divisions for settling electricity, water and transport regions.

    The crime rate is pretty much high which is another issue for the newcomer and it is essential to keep such things in mind and always be careful about such activities.

  • International Problem of Fuel Prices Affects Cargo to Africa Industry Too

    Impacts of costly fuel

    It is a well-known fact that fossil fuel is at the center of every economic activity. The prices of fuel determine the prices of all the commodities since the movement of every commodity depends on oil.

    In fact, fuel prices affect each and every individual’s life in some ways to some extent.

    The Cargo Industry

    A cargo industry is the first and foremost that is affected by the fuel price fluctuations. The higher fuel prices mean higher shipment charges. The rise in fuel prices affects the cargo to Africa services as well including trucks, railways ships and airways all and customers try to avoid shipments.

    Similarly, low fuel prices bring the cargo charges down and thus boost the growth of the industry owing to the maximum use of its services. The increase in the fuel prices affects the cargo industry in many ways.

    Chain Reaction by Fuel Price

    The rise in fuel prices actually brings about a chain reaction. When the fuel prices surge, the cargo charges also increase. This increase in the cargo charges means the shipper is going to be charged more to make up for this.

    In the similar fashion, when the shipper will be charged more it will make the receiver pay more amount. Therefore, this cycle will end up causing inflation. We can see how a minor change in fuel price affects each and every individual.

    Setback to the Cargo to Africa industry

    When the fuel price rises, the cargo prices also rise which makes people hesitate to use cargo to Africa services. This hesitation leads to a lesser use of cargo services which reduces the revenue of the cargo industry and thus the industry suffers a setback.

    A firm fuel price ensures a steady revenue generated by the cargo industry.

    Competition

    This effect is actually a positive effect. When the fuel price rises, the cargo companies try to mitigate the effect by providing services at a discounted rate so that the cargo to Africa companies are not disrupted.

    This thing promotes competition among the cargo companies and in turn, the service rates are decreased. However, these effects remain active for a short and limited amount of time.

     Effects on Economy

    We know that economy of all the countries is largely dependent at fuel. More fuel prices bring less cargo activity which affects the economy in the longer run.

    Even though the effect is not immediate, yet it plays a significant part in the destabilization of the economy. It largely influences the imports and exports of the countries.

    Uncertain Future

    Since the logistics company run entirely at the expense of fuel, they are at higher stakes regarding oil prices. If the fuel prices keep on rising and rising, many companies would go down and many would be forced to take loans.

    So higher prices of fuel increase the risk for the cargo companies manifolds. Similarly, on the lower level, less shipping activity will be noted.

  • Blooming African Cargo Trade

    Signs indicating that Africa is on the rise

    Africa today is not what it used to be. There is progress, trade has increased and still rising, the world is looking towards this continent for opportunities for business growth and developed countries are investing generously in developmental projects.

    It was the foreign investment which proved to be an initiating step for progress in this developing country. In the present time, Government is playing an important role in rectifying the economic situation. Political stability has also improved shipping to Africa which plays a key role in any country’s evolution.

    Moreover, the growing population is inclined towards urbanization which is a good sign showing the flexibility of people for progress. There are advancements in various sectors around the continent which is giving off solid proofs of a better Africa in the future.

    Processing of Raw Agricultural Produce

    At present, mostly raw items are traded by Africa in the international market. But to reach higher markets value-added services are also being introduced. Instead of trading unprocessed commodities which are less preferred, making them acceptable and then presenting for trade is a much better way.

    The need is being promoted in Cargo to African countries for many years and it is successful in most of the cases. Still, there are more opportunities for investment in this sector. What happens due to the process is that only fresh and high-quality goods reach the market and the value increases.

    Otherwise, the purchaser gives less money for low-quality which reverse the situation and the owner have to face loss. In turn, no improvement takes place at the root. For a positive route towards prosperity, it is necessary that change takes place at the base of a system.

    Local Manufacturing

    For a much better scope of trade globally, it is needed that local market advances at a steady pace. Currently, most of the products which are in demand by the growing population are traded.

    Over the past few years, businessmen in the region have started manufacturing with available products which can prove to be a starter in this direction. Trading inland creation will generate more revenue as the manufacturing cost will be paid back and profit graph rises as a result.

    This initiative is seen by an optimist as a rush of gold and the sector is sure to gain popularity by the profit level it is going to give back.

    Export Market Being Improved

    For a long time it was impossible for African market to meet the international standards but now efforts are being made in this respect to improve the exports.

    The best advantage for this land is its richness in food growth and with such a large rise in the world’s inhabitants the danger of food shortage is building up. African countries can positively play their role in providing eatables to the world when such a situation triggers. For this side to stay positive the standards should keep on getting higher to deliver internationally what is needed by most.

  • Cargo Trade Agreements Between UK and South Africa

    Especial emphasis is being put on the future of trade relations after Brexit

    South Africa is the largest trade partner of UK and the second largest in EU. With such a big trade relations to both the sides, there are certainly insecurities that are leading to more and more meetings between the two countries regarding the arrangements that are to be made to lessen the effect of Brexit on trade of both the countries. An interim arrangement was being discussed based on the already existing EU partnership deal. This is to ensure that the transfer will not hurt the trading relation and the procedure will be smooth and without complications to streamline Cargo to Africa. Because both are strong trade partners, such actions are obligatory to ensure harmony.

    An Intelligent Decision is needed:

    What is expected from both the sides is to take this time period as a fruitful era. There are still two years before Brexit and lot will be decided by UK as well the trading partners. There will be a total loss if there is any decision that can harm these trade relationships in any way. Both UK and South Africa are in very good positions to reach a point where both can prosper more in trade and make most out of the situation.

    The increasing meetings and revising agreements are very important steps and both the countries should act wisely to reach an interim agreement that will support the trade and cargo from both means like sea cargo and air cargo, while the situation becomes clear after a hard or soft Brexit whatever the case is. Countries are trying to secure their relations with UK to make things move as they are and not have any harm due to the process.

    What is UK expecting of South Africa?

    Many of us always talk about the other countries but what about UK? While others are making arrangements to secure their ends, UK also demands something in return. There are tariff rates which are fixed for the domestic commodities to save them from the competitive imports in the economic partnership agreement of EU. Lower tariff is applied on those products to come in but in certain quota, any volume above the decided one is considered prohibitive traffic.

    UK wants SA to discuss this point that tariff rate volumes remain the same and not decrease after Brexit. EU has not increased them even if there is an increase in the members so the expectation form the UK side is that South Africa will not reduce it when the time comes.

    Ensuring uninterrupted Trade:

    Because of such strong ties, none of the two parties want to have a negative effect of Brexit on the trade side. The interim arrangement will ensure that the trade between the two countries remains smooth and uninterrupted. A halt in the trade will mean a heck of loss for both the sides.

    The increasing meetings and this arrangement also hints towards how important are these two countries for each others trade. The South African Customs Union (SACU) has already sent a letter to UK to make a suggestion of discussions between the two nations to establish an interim agreement to avoid any distasteful experiences for both sides in terms of trade.