Bulk liquid specialist upbeat despite economic slowdown

Bulk liquid transport specialist
M & S Logistics has recorded
favourable results on the Far
East route and is upbeat about
future growth, says Kreason
Pillay, managing director SA,
Africa, India and
Middle East.
“It’s an
integral
part of the
company’s
global
business,”
says Pillay,
who believes that the potential
extends beyond South Africa,
which is the main gateway, to
southern African routes as well.
“But being a global business our
focus is to all destinations.”
The main product lines
moving on the Asia to South
Africa trade lane are a mix
of various chemical liquid
products, says regional director
for the Far East, Anthony
Latham. “It’s a growing part of
our business and we’re seeing
a healthy single digit rise year
on year.”
In terms of capacity, there
is no issue for the time being,
says Pillay. “Rates are also
currently very soft due to the
overall economic slowdown
– especially in Asia due to
the switch in China from an
export-driven to a domestic
consumption-driven economy.”
“The region is currently
experiencing a considerable
slowdown which is expected to
continue into next year. These
macro-economic pressures
have had an impact on our
margins as well,” says Latham.
And there are other
challenges on the
route. “Trying to secure
contract business is one
of the big ones, with
most of our current
business predominantly
spot business,” he says.
“But all things
considered, we believe
it’s a route that will
continue to grow,”
says Pillay.
INSERT & CAPTION
Rates are currently
very soft due to the
overall economic
slowdown.
– Kreason Pillay