Test shipments have proven the viability and effectiveness of consolidating copper shipments in containers in Lusaka and then exporting them, according to Mesele Seyuba, country director of MSC Zambia.
He believes that containerisation of other export commodities in Zambia would hold similar benefits. One such commodity has been timber, although volumes have been affected by a ban implemented by the Zambian authorities on timber transiting through Zambia.
The cost-benefits of containerisation include lower risks of pilferage, as well as savings in time and money by eliminating the need for extra handling and storage at the port of loading.
These benefits more than offset the relatively small loss of 2.3 tons (which is equivalent to the tare weight of a 20-foot dry van) of freight due to the weight of the container, he says.
Containerisation also helps shippers to budget more accurately.
With breakbulk shippers pay for the landside leg separately, in addition to the ocean freight or as a port-to-port rate.
“However, all these costs are included in a one stop shop solution when shippers opt for a through bill of lading,” he says.
MSC is able to negotiate favourable rates with the hauliers due to its volumes, and the line is able to optimise the stacking date for the MSC vessel which will carry the cargo to its destination sea port, says Seyuba who believes there are signs of economic recovery.
“It would appear that Zambia’s economy is set to grow. Increased inflows of US dollars into commercial banks have led to strengthening of the local currency.
“Over the long term, this appreciation will make Zambian goods and commodities more competitive locally, and lead to increased exports going forward.
“MSC Zambia is poised to capture a larger share of the market as market fundamentals shift to a more positive position,” he says.
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MSC is able to negotiate favourable rates with the hauliers due to its volumes. – Mesele Seyuba
