Capacity management plays key role in service delivery

JOY ORLEK RAPID GROWTH in imports from the Far East – particularly China – has put significant pressure on capacity from the region. Volumes have grown by 15-20%, in the view of Safcor Panalpina seafreight forwarding development manager Trevor Christensen, with China holding top spot ahead of Japan and Taiwan in the company’s regional trade hierarchy. And this is probably a fair reflection of industry-wide trends. “Of our total volumes, 46% come from China and of that 45-50% from South China, which is definitely increasing as a percentage of the whole.” Clothing, textiles, low-end electronics and footwear are the big volume items, key imports, while are moving at a “frightening pace”, he told FTW. “The growth in electronic imports is a function of the capacity of South Africa’s emerging middle class to spend its new-found wealth and is likely to keep pumping for the foreseeable future, with automotive probably the next major growth area.” Keeping pace with this growth has demanded careful forward planning, says Christensen. “We embarked on a strategic capacity management programme some time ago which involves forecasting our volumes, predicting what we’re likely to need per carrier, and getting a commitment from the carriers to support it. We strive always for a fair exchange of value between ourselves, and our carriers, and in return our core carriers, amongst them K-Line, MOL, Safmarine and NYK, have supported us in the toughest of times. “It’s made us strong on the trade because we don’t have significant roll-over problems and we don’t have capacity problems. If you think ahead, plan what you’re going to do, and live by it, then it makes life a lot easier.” But agency muscle is equally important, says Christensen. “Panalpina covers the whole of China extensively, focusing on north, central and south China, with a strong management structure under a managing director in each of those regions.” As to the future of the trade, he believes that realistically10-12% growth per annum is not sustainable in the long term. “The bubble is likely to burst , but when that will happen is anybody’s guess. will largely depend on our local economy. We’re not buying strategic goods, we’re buying consumer goods, and as long as the South African consumer has the money to pay, the volumes will continue to flow.”