Auto industry will drive up trade growth with Asia

TRADE GROWTH between Asia and South Africa is expected to continue its upward spiral as several automotive companies move their operations from Europe to Eastern Europe and the Far East says Alan Jones, Africa region executive of Safmarine. Far Eastern growth with Africa is heavily influenced by China. “But growth is not only coming from China – there has been a general switch to the East, which includes Eastern Europe,” he told FTW. In terms of automotive cargo, Jones says an increasing number of shippers are realising the benefits of concluding long-term contracts with shipping lines. “Stability is becoming more important. Shippers in the long-term manufacturing business are beginning to view continuity, consistency and good service as more important than playing the market,” he told FTW. Long-term contracts also benefit the shipping lines, which are able to invest in vessels to provide the service required by shippers. “It’s very risky for us to invest heavily in assets on the back of a 12 month contract,” says Jones. While freight rates are always a factor, Jones says they should not be viewed in isolation. “What is important to customers is consistently good value for money for the service offered.” He says Safmarine’s Africa region will be making a concerted effort to maximise growth from the region, particularly with regard to East and West Africa. “This will be possible thanks to the additional services we’ve implemented and the additional tonnage we’ve secured.”