Africa earmarked for US export growth

Sliding volumes and declining imports from the US have prompted companies to question whether the country could be falling back into recession. With the US dollar remaining weak against most major currencies, US exports should certainly be price-competitive, said Colin Atkins, managing director of World Cargo Services “Normally the final quarter of the year yields the highest import volumes from the US. Suddenly this trend has been challenged with sliding volumes,” he told FTW. “Does this mean the US is sliding back into recession or is this rather a barometer of the South African economy?” he asked. Only time will tell, but he noted that imports from the US did not look too rosy for 2012. The company monitors the US economy closely as it is one of the specialist independent groupage operators out of the region. Atkins said Africa had been earmarked as a significant growth market for US exports, with projections of trebling trade with the region over the next decade. WCS has established partnerships in Ghana and Kenya and through its US partner CaroTrans, it is well positioned to take advantage of increased exports to all of Africa. The company has seen its airfreight product expand rapidly in 2011 and now operates a nightshift to cater for time differences with the US. “While space shortages continue to retard airfreight efficiencies, we have been very lucky to have a major partner with clout to secure cargo bookings,” said Atkins. Ocean freight rates have again come under pressure this year as freight forwarders fight to retain their market share and maintain volumes at levels sufficient to take in the effects of economies of scale on landside logistics. “Being ‘lean and mean’ does help sometimes, as we can deliver high service levels with low overheads,” said Atkins. “2011 seems to have been the year of technological advancement in IT systems and we have introduced a few innovations,” he said. “Ever heard of a Desktop Gallery Gadget? Well look out for the little Swiss Army knife on our emails, the gadget we all associate with so many tools. One “click” to access ocean and origin landside costings, shipping schedules and track and trace. No website searching necessary anymore!”