Decrease in coal exports reflects overall market conditions

Despite the downturn in volumes this year, trade between southern Africa and the Far East is growing, bringing with it many opportunities. According to Kevin Ganess, general manager: bulk shipping and chartering for ICM, there are opportunities on the outbound and inbound trade lanes. “South Africa is a major raw material supplier, with resources such as coal, iron ore, chrome, manganese and nickel. It also facilitates numerous import activities, playing the part of a hub station into Africa,” Ganess told FTW. “While current volumes are significantly down compared to last year in terms of dry bulk – even coal exports have decreased almost 2% – it really is only an industry indicator of the overall market.” According to Ganess, the current trend is textbook characteristic of the traditional pattern for the dry bulk trade. “Quarter 2 is generally a trough segment of the year, with a gradual rise in the third quarter.” ICM’s bulk shipping and chartering division is responsible for the staging and facilitating of dry bulk cargoes at various bulk ports within South Africa. This involves the overall handling, loading/offloading of vessels and ships’ chartering associated with dry bulk cargo. The division is maintained by a niche operations unit and client servicing team further supported by the various rail, road and clearing and forwarding divisions, ensuring an end-to-end pipeline from source to end-user. Ganess said despite current market conditions the company expected to see a rise in trade to the Far East, with September being the start of the third quarter. “In terms of diversifying, coal and iron ore volumes are a key focus for the year ahead.” The East, however, does pose some cultural and language challenges. “This can result in a competitive disadvantage when Far East buyers tend to isolate themselves with service providers on their own ground. “Time difference may not pose a significant threat to efficiency, but it does add to the communication issues, while supply tends to outweigh demand on a highly volatile dry bulk market, with parcel shipments not able to be accurately forecast,” said Ganess.