‘Don’t undercut rates if you want to survive’

Lower volumes of imports and higher volumes of exports are on the cards for the container industry due to the financial crisis that has hit the world this year. According to Derick van Wyk, general manager of Kodiak Shipping, proper planning and good management can, however, overcome the obstacles. “The business is tough and only those who are not prepared to undercut the market transport rates will in the long run survive. Those who over-reach their clients will soon be out of work and the pinch of the economy will then punch.” But, said Van Wyk, proper management is required at all times. “A very troublesome issue is the financial institutions that factor book debt. The exorbitant fees that these institutions require and the excessive securities that they take in the so-called ‘life line’ that they provide for the cash flow of businesses should be investigated.” Van Wyk said another issue that had to be addressed was the red tape when dealing with ports. “Our ports need to be more accessible. Dealing with the ports can be extremely difficult at times.” According to Van Wyk, despite the woes, Kodiak Shipping remains optimistic about the future. “Since our inception eight years ago we have recorded excellent growth to a turnover of R157 million in the 2007/2008 financial year. It is envisaged that the company turnover will reach R180–R200 million during the next year.” This, he said, was due to the business being driven by personal relationships and trust being built with clients. “Excellent service is our motto and it can be seen in our extensive client base which has been with the company for years. As clearing and forwarding agents with our own warehousing and transport divisions we can provide a one-stop service.”