CSAL expects a tough year with market contraction likely

Current economic constraints are likely to lead to a contraction of the South Africa-US market, according to Darryn La Reservee, super cargo manager at Mitchell Cotts, agents for Canada States Africa Line (CSAL). CSAL specialises in roro, break-bulk, bulk, containers and project cargoes from South Africa to Canada and east coast US. “Just-in-time shipments over the past couple of years have become more and more predominant. With container ships being faster and usually having a quicker turn-around time in port, a lot of the break-bulk cargoes and even bulk cargoes are now being shipped in containers.” He said business southbound had been steady, comprising cargo such as machinery, second-hand trucks and mining equipment. “On the northbound leg we have seen a steady volume of small bulk ferro alloy parcels. Granite has had its ups and downs this year, and added to this is the very high cleanliness requirements in Montreal,” said La Reservee. He predicted that the year ahead would continue to be very tough “especially with the ongoing economic issues that the US is experiencing”. “Freight rates to New Orleans are very low for bulk cargoes and it is very difficult to fix cargo at any type of reasonable rate,” he said. However, La Reservee said CSAL was in a “unique position” as its specialised services and ice-class vessels allowed it to travel to Montreal all year round, giving it an advantage in a difficult economy. The line is now looking at other possibilities to further expand and improve its service from Africa to Montreal and the US. The liner ports that CSAL serves include Montreal, Baltimore, Savannah, Walvis Bay, Cape Town, Durban, Richards Bay, Durban, Cape Town and Walvis Bay. CSAL also calls Maputo, Beira, Saldanha Bay, Charleston and Wilmington on inducement – and New Orleans and Houston when the cargo from South Africa warrants it.