Cheaper rates carry heavy cost for shippers

Smaller consignments on

a “ just in time” basis have

fast become the norm

thanks to the slowdown

of the economy.

According to Paul

Cunliffe, managing

director of 4PL.COM

Cape, this means

that the demand for

consolidated freight

has increased.

“The switch from

conventional full loads

is obviously more

expensive, which

creates a very

competitive

competition

platform for

cheaper rates,”

he recently told

FTW. “As a

result of the escalating

demand for cheaper rates,

operators who are properly

capitalised in the form

of decent infrastructure

and equipment are feeling

the pinch as

margins are

compromised.

To overcome

these

challenges,

the provision

of risk-free

service

delivery

becomes

paramount.

Educating

customers to

understand

the risks of using cheaper

transport needs to

form part of the service

offering.”

Cunliffe said it was

becoming increasingly

important for cargo

owners to make use of

operators who could attend

to all their needs.

“The benefits of doing

this are endless not only

in terms of control of

cargo movement but also

to provide solid platforms

where relationships are

grown.”

He said that through its

associate

companies,

Transmart

and 4PL

Freight,

the

company

was now

able to

provide

such a

“one-stop”

service

to its

customers.

“It covers overnight

deliveries between Cape

Town, Bloemfontein and

Johannesburg both ways

and an economy service

to all major centres for

normal and hazardous

cargo. We also now have a

dedicated express service

between Johannesburg and

Harare.”

INSERT & CAPTION

The switch from

conventional full

loads is obviously

more expensive.

– Paul Cunliffe