FYNBOS EXPORTS FROM THE WESTERN CAPE PROVINCE: A PROBLEM OF LOGISTICS
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During 1997 research was conducted on trends in factors that affect the supply and
demand for airfreight space for fynbos exports from South Africa. The aim was to
sensitise decision-makers to probable trends in those factors that will shape cargo
space availability. The main finding was that the supply of airfreight to South African
producers is aggravated by the unbalanced availability of cargo space on southbound
and northbound trips originating from Cape Town. If the price and quantity of cargo
space were determined by supply and demand, an imbalance couldn’t arise in a perfect
market, as prices would balance cargo space supplied and demanded. However,
airfreight tariffs are rigid per weight level. The result is that items with a higher mass
per volume unit represent a higher income per palette, and are therefore preferred by
export agents. This finding has implications for future growth in the industry.