Meeting the challenge of unpredictable rates charged by overseas freight forwarders on shipments destined to or from South Africa is a challenge for local consolidators. “Many varied rates are offered by forwarders overseas,” said Chris Scott, MD at Customs Services in Boksburg. “Many of the rates are not competitive, and where forwarders have local representation there is a constant effort by them to undercut the medium-sized operator,” “To overcome this problem, Customs Services has become a member of the World Freight Network. This has given us huge negotiating muscle with shipping lines and airlines. We can now offer competitive rates and service levels,” said Scott. And thanks to its membership, the company’s groupage business has increased, he said. Customs Services is now in a position to offer co-load rates to other agents. The World Freight Network affiliation has also assisted with expansion of routes, which now extend to North and South America, the Middle and Far East, Australia and Europe, and others. The firm also finds that by offering competitive seafreight rates, its consolidation business has become more lucrative. However, the bottom line can be compromised by shipping costs incurred here in SA, observed Scott. “The challenge affecting the profitability of doing consolidations is that our local unpack depots are extremely expensive,” he said.
