China's ceramics on the up

As ceramic tile
importers
increasingly shift
their product
sourcing from Europe to
China, specialist logistics
operator Rara Avis is reaping
the benefits of growing cargo
volumes on the route.
The Johannesburg-based
company, which has its origins
in the specialist movement of
ceramics, believes the growth
potential is immense.
“China’s output has reached
2.5 billion sqm – around half
the global total output,” says
managing
director
Judy Everitt.
Foshan,
Guangdong
province is
the most
representative
area with
the output
accounting
for more than
60% of the
total output in
China, according to Everitt.
“In 2013 the value of trade
was US$ 92 048 632. By 2014
it had reached
US$ 159 564 316 just in the
ceramic, articles of stone
segment – and it’s expected to
maintain growth of 15% in the
next five years.”
The market is however
not without its challenges
– among these seafreight
capacity issues.
Cargo is generally shipped
in 6m GP containers with the
weights of up to 27000 kgs
per TEU. “Space availability
is an ongoing issue,” says
Everitt, “since shipping
lines have a minimum load
capacity on these heavy
containers.”
Price volatility is also
an ongoing concern for
importers and their service
providers. “Shippers are
required to provide their
customers
with quotes
well in
advance of
the arrival of
the goods –
and with
long lead
times we are
constantly
being asked
to validate
rates for
up to
three months, which is
virtually impossible.
Service rationalisation
and seasonal demand
often result in a
lack of space on this
route with many
sailings being fully
booked up to four
weeks in advance.”
In addition shipping lines
are reportedly considering
the re-implementation of
heavy weight surcharges per
6m container with cargo in
excess of 18000kg.
But dealing with
challenges and coming up
with solutions is what
Rara Avis is all
about, says
Everitt.
“We cut
our teeth
in the
ceramics market and
have the experience and
expertise to ensure safe and
timeous delivery at the most
competitive rate.”
While the import of
ceramics from China is an
area of specialisation, the
company is a global logistics
provider offering intermodal
services for all products to
worldwide destinations.
“We’re a member of
the PCN network
globally which
we believe opens
up avenues not
available to other
SME forwarders.”
INSERT & CAPTION
The ceramics market is
expected to maintain
growth of 15% in the
next five years.
– Judy Everitt