The trend towards smaller
consignments more often in
tighter economic conditions
is playing into the hands of
groupage operators, with
several reporting growing
volumes, particularly on the
Far East route.
“Far East imports by sea –
incorporating the whole region
– make up the biggest volumes
in our portfolio,” says Martin
Keck, managing director
of independent groupage
operator CFR Freight.
“We have direct services into
South Africa from 13 different
ports and that excludes
the Indian subcontinent.
All exports are hubbed in
Singapore and Hong Kong.
“In addition, Port Elizabeth
is now served from Shanghai,
Hong Kong and Singapore.
And thanks to the recent
launch of our Port Elizabeth
container freight station,
ZacPak, cargo remains under
our control right until the
release to our clients.”
In terms of future growth,
Keck concedes that forecasts
are difficult. “Growth would
have to come through superior
service levels and product
offerings – which CFR,
through its ZacPak subsidiary,
is more than
capable of
delivering.
“But if
the trend of
bigger orders
changing into
smaller ones
materialises
we could see
more LCL
demand. And
it’s a demand
that CFR is well
placed to meet,” says Keck,
who also points to significant
demand for cross trade
business.
“China and India have
more and more direct lanes
and dealings with the African
continent and we have a
powerful network both in the
East and on our continent.
We are therefore fully geared
to deal with cross trade
business and inquiries.”
The route is, however, not
without its challenges and
chief among
these is the
unsustainable
level of ocean
freight rates
offered by the
shipping lines.
“They can’t
really get lower
and the current
levels are not
healthy. China
import service
fees and other
“interesting” charges all
come down to one issue
we mention over and over
again to our clients. The SA
importer must buy FOB or
ex works and there will be
no surprises.”
INSERT & CAPTION
The SA importer
must buy FOB or
ex works and there
will be no surprises.
– Martin Keck
Direct groupage services from 13 ports
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