‘Their help is needed to achieve lower unit freight costs’
ALAN PEAT
WITH THE export industry such a vital part of SA’s economic future, there should be co-operation throughout the local link in the freight chain to help keep SA exporters competitive in the penny-conscious cost world of international trade.
The basic philosophy should be for all SA companies to pull together to ensure that local exports succeed in this highly competitive environment, according to Ger‡d Wessels, export director of refrigerator specialists, Zero Appliances.
“I would like to see transport operators assuming a partnership role,” he said, “since the success of exports is ultimately their bread and butter.”
First thing that needs remedying are the weaker links in the SA freight chain.
“The ports and the congestion surcharge are one such weaker link,” said Wessels, “and it’s an added cost that we can’t recover in our pricing.
“But we should all be pulling together as South Africans.”
The fact that the majority of SA’s manufacturing exporters are some 600-kilometres from the nearest port is a also a major problem in facing the severe conditions of the export market.
“Converted to unit costs,” said Wessels, “the freight rates to-and-from the port are just too high.”
There’s also little escape in using supposedly cheaper rail transport.
“Rail rates for containers are only about R50 less than road rates, so there’s little competitive advantage in whichever mode you choose.
“But road and rail operators should take the export scenario as seriously as we do and assist manufacturers and exporters to achieve lower unit freight costs and help to keep employment growing in the export industry.”
Wessels suggests that the only way to do this would be to create a forum with the forwarding and clearing and transport industries to discuss rates on a regular basis.
“Those who can reduce rates while still successfully competing in their own sectors would help in creating better export performance,” he said.
“I feel that everybody should take this scenario as seriously as possible, and assist SA exporters with better rates.”
