‘Commodity exports perform relatively well"

Despite difficult market conditions, mineral export volumes performed relatively well, according to Safmarine’s Gauteng-based commodity manager, Steve Simpson. While liftings were below expectations, Simpson believes the line’s mineral export customers have done relatively well in a market that’s been weak, experienced low demand compared to 2011 and was severely impacted by the labour disputes at South African mines. He says Safmarine, on the back of strong demand from Asia and Europe at the beginning of the year, had hoped to significantly increase its mineral export liftings in 2012. “But the goal turned out a difficult one to achieve, especially post-April, when we saw a considerable drop in demand. The market remained soft until November and, even when demand picked up towards the end of the year, remained low compared to previous years.” Considering these challenges, Simpson says it became even more important for Safmarine, in 2012, to find win-win solutions. “Profitability has been a key issue for us this year. After the container shipping industry’s much-publicised losses in 2011, it was important that our customers understood why we needed to achieve a reasonable return on our shipments. “In return, we’ve helped our customers grow their business by ensuring they have the equipment and market level rates they need to compete in a challenging economic environment. For example, those customers who shared our partnership-minded approach to business benefited from having access to equipment when high demand led to a shortage of 20-foot export boxes. We also worked with them to find ways of maximising the potential of other South African ports when they were impacted by the upgrades at the Durban Container Terminal,” he said. CAPTION Steve Simpson … ‘Profitability has been a key issue for us this year.’