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Balancing service and revenue an ongoing challenge

06 Feb 2025 - by Liesl Venter
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SACO Shipping has reported a significant increase in imports during 2024, driven by its ongoing product development initiatives and a customer-centric service approach, both of which remain key strategic priorities for 2025.“We recognise and value the growth we have seen in imports in 2024. The division has done exceptionally well on the back of our 2023 performance,” said Debby Gray, SACO Shipping airfreight branch manager in Johannesburg. “Although airfreight volumes have been bolstered by challenges in sea freight, such as ongoing port congestion, I am reluctant to attribute the growth solely to these factors. While we did benefit from these challenges, I believe the primary driver of our growth has been the ongoing development of our import offerings.”She said as part of ongoing review and development, the company had curated a robust basket of import products that combined competitive rates with reliable service. “In the fourth quarter of 2024, we implemented key changes to several trade lanes, including French, Spanish, Turkish and Shenzhen/Guangzhou routes, ensuring our offerings remain aligned with market demands.”Looking ahead to 2025, Gray said SACO would continue prioritising product development by engaging with clients to align growth strategies while monitoring market trends to maintain agility and adaptability. “Members of our ACG network recently visited South Africa, meeting with loyal clients to showcase the network’s capabilities and add value to our partnerships – a move that further strengthens our position.”Gray expressed cautious optimism for 2025, emphasising the importance of building on the successes of 2024. “We will maintain our momentum by continuing our product development initiatives into 2025. I believe we established a strong platform in 2024 from which to drive further growth in the coming year,” she told Freight News.Asked about the challenges anticipated in 2025, Gray said the global political landscape was a key area of focus. “It will be interesting to see what occurs in the US political arena this year, especially with potential changes to trade agreements and policies. Such shifts could heavily impact exports and, in turn, South African import support. Considering the significant trade on the US-South Africa route, this could lead to substantial changes in procurement strategies, with South African importers possibly sourcing products historically procured from the US from China instead.”Gray also pointed to aggressive competition as an ongoing challenge in their industry. “This competition exerts significant pressure on profit margins, making it challenging to balance achievable revenue while maintaining our high service standards. At SACO, we believe that service should always be the main differentiator. As in any market, good service is not necessarily the cheapest service. We strive to provide our clients with an optimal combination of competitive rates and superior service,” she said. LV

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