Cargo to Africa on a growth trajectory

Despite the economic downturn, independent groupage operator CFR Freight has seen volumes maintaining, says managing director Martin Keck. “Compared to clearing and forwarding agents who are talking of more substantial volume declines we have been a lot more fortunate. We believe that a considerable amount of sea freight cargo has converted from FCL to LCL,” he told FTW. While there hasn’t been growth, he says volumes have remained stable despite the worldwide economic slowdown. “Looking at specific regions, however, volume discrepancies are noticeable. While volumes to and from countries worst hit by the crisis – like Japan and the UK – are more volatile, South East Asia, specifically Vietnam, has grown. A lot of Chinese factories have relocated to Vietnam and our agents Shipco Transport have recently opened their own offices due to the growing demand.” Another growth area is exports into Africa, says Keck, where volumes are substantially up. “Not only are South African products being exported into Africa, but a lot of goods sourced in India and China are transhipped via Durban. Our containers are being filled with Chinese and Indian cargo destined for sub-Saharan Africa. Europe has lost its number one position as a source of African imports.” But while volumes may have remained stable, profitability has taken strain, he added. “Because of overcapacity on most trades, space is freely available, which means freight rates have plunged drastically – and with everyone vying for a share of the shrinking pie, competition is fiercer than ever.” A big concern, says Keck, are the cut-throat rates. “A number of freight forwarders and shipping lines who have substantial infrastructures to support are rather doing business at a loss than turning away customers – and that destabilises the trade for everyone.” When the market is tight, expertise becomes key, says director Peter Schmidt-Löffler. “Everyone is getting good rates from the lines. “The question is who can do the business smarter and maximise container utilisation. And of course service is very important from our side. “It’s crucial to have the right tools like IT, neutrality and a powerful international network, but service and customer focus is what truly sets us apart.” CFR’s membership of the WolrdWideAlliance provides extensive coverage for sea freight shipments around the globe while its recent joining of the neutral network of international airfreight wholesalers, the AirCargo Group, provides the same benefits for its growing airfreight customer base.