THE air cargo business from the East African Community (EAC) to Europe is under pressure as weaker currencies, rising inflation and the ongoing Eurozone crisis all hit yields, reports Perth-based Aircargo Asia Pacific.

    EAC exporters region said freight is now 40 per cent of total cost. The slowdown in horticultural exports - at US$145 million value in the first two months of 2011 compared to $716 million in the same period last year - will eat further into this year's earnings.

    The industry is seeing traders leave the industry and they are not likely to return until the economy stabilises, according to Michael Muriithi, British Airways World's east African cargo manager.

    The International Air Transport Association (IATA) says the global freight business declined by 3.8 per cent in August and 1.8 per cent in July.

    "Freight business is shrinking at a faster pace. With business and consumer confidence continuing to slump globally, there is little optimism for improved conditions any time soon," said Tony Tyler, CEO and director general of the International Air Transport Association (IATA).

    UK-based British Airways will introduce a freighter on the EAC-Spain route with its merger partner Iberia, and Kenya Airways is separating cargo from passenger flights, reconfiguring its 777-300ER aircraft to add cargo capacity as well as 78 passenger seats.

     Elsewhere in the world, Antigua-based LIAT plans to offer a 50 per cent discount on freight charges for some goods.

(source:http://www.shippingonline.cn/news/newsList.asp?classname=News)