FRIDAYMarch 20 2020|11 CONSOLIDATORS & CONTAINERSConsolidators are preparing for rate uncertainty due to a decline in volumes – partly attributed to the coronavirus outbreak in China.According to Willie Nel, managing director of ZacPak, volumes from China have not yet taken a knock, but no-one has any idea of what the impact will be.The coronavirus is however not the only challenge facing consolidators. “Port congestion and queuing trucks at the ports have become a major concern. Vessels are also bypassing ports and stacks are being moved out continuously – all of which has hurt the export market.”The deterioration in the condition of containers is a further concern. “Container conditioning is in dire need of attention,” he t old F T W.A nd that's not all that's affecting consolidators' bottom line.According to Nel, there's an international trend to rather opt for full container lo a d s (F C L s). “As consolidation service providers have seen an increase in volumes, clients are considering packing FCL containers to maximise usage,” he said.The company mantra for the future would be improving service levels while saving costs, he added. “We believe there is room to grow in the market. Our strategy to do so will be to focus on our economies of scale to mitigate against lower margins and by outsourcing non-essential tasks.”
INSERT: Port congestion and queuing trucks at the ports have become a major concern. – Willie Nel