China demand keeps bulk volumes pumping

THE IMPACT of Eskom’s power cuts on mining output is not slowing shipments to the Far East as high bulk rates keep minerals and metals moving in containers. “If a mining house says that output will be cut by 10%, the impact on shipping demand is minimal as these companies have many thousands of tons in stockpiles waiting to move into China,” Siva Pather of Land and Sea Shipping told FTW. “And until bulk rates come down, bulk goods like the minerals and metals will continue to move in containers. Due to the shortage of 20 foot containers country wide, we have switched to 40 foot units to meet this booming demand into China.” “The demand is there, but someone needs to come along with a whole new fleet of ships to keep up,” adds Manju Pather. “The ore in containers and not in the bulk vessels is taking up a lot of space on the ships.” The company is riding the booming trade with China and is planning to expand into imports and reefer business in the future. “It’s an interesting time, with enough business for everyone,” says Manju. “The chrome into Europe is doing well, as are scrap metal and steel products into the Middle East and India. There is also a lot of telecommunications equipment going to Africa, but China will continue to be the dominant focus market in the immediate future.”