Air and sea operators monitor volumes as global crisis intensifies

The Eurozone crisis seems to be intensifying, along with a similar debt problem in the US, leading to a dramatic cut-back in their demand for imports. In line with this, the Far East export industry, for example, is cutting back noticeably on output, leading in turn to a curtailment of Far Eastern imports of basic raw materials – like mineral commodities – and components. This combination of restricted trade demand is, in turn, impacting severely on exports from all their suppliers – like the mineral commodity exports from Africa – and the concomitant cut-back in import demand from these countries. All this has led to the current global trade slowdown. The question this triggers amongst shippers and agents is what effect is this having on shipping lines and airlines. Are their services being impacted by these adverse trade conditions and are cutbacks in scheduling and capacity part of their proactive contingency planning? “Indeed, what you advise is correct,” said Glenn Delve, marketing director of MSC, “and we too have noticed a downturn in volumes. “But, at this point, we are not considering cutting back.” There is a primary reason behind this decision by MSC, he added. “As you can relate, it is very difficult and logistically challenging to cut tonnage just like that,” Delve told FTW. “Therefore we continue to suffer with current tonnage, in the hope and belief some improvement is forthcoming.” When quizzed on the subject, Matt Conroy, trade manager for the AP Moller Maersk Group – which operates Maersk Line and Safmarine – told FTW: “We have seen that imports year-to-date into SA are up from last year. However, the traditional Far East to SA peak has had a slow start.” He did, though, note that the lines expected to see some strong weeks of demand, but did not anticipate an extended peak. “Due to this,” said Conroy, “we are rightsizing our capacity on our Safari service, where possible, to ensure our capacity in the market is more in line with the demand.” Speaking on behalf of the airlines, Chris Zweigenthal, CEO of the Airlines Association of SA (AASA), told FTW that the airlines and the airport operator, Airports Company of SA (Acsa), had recorded an almost no-growth trend. “The growth of passengers out of OR Tambo International Airport (Ortia) in Johannesburg is under one per cent this year over last,” he told FTW. He noted that people were being a lot more cautious about what they did with their money. “Leisure passengers are our main public,” he added, “and they are watching what they do with their disposable income.” The AASA has recorded that Iberia and Air Malaysia have both pulled out of services to and from SA, and that SAA has cut its Cape Town-London flights. “Given this,” said Zweigenthal, “all the other airlines are very carefully watching what is happening.” CAPTION Air Malaysia was one of the casualties of the economic crisis, having withdrawn from the SA route.