FYNBOS EXPORTS FROM THE WESTERN CAPE PROVINCE: A PROBLEM OF LOGISTICS

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.


Issue Date:
1998-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/54901
Published in:
Agrekon, Volume 37, Issue 4
Page range:
579-587
Total Pages:
9




 Record created 2017-04-01, last modified 2017-04-04

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