As global shippers brace for a significant increase in freight rates across all routes, local players are more circumspect about the level in the SA market.
While shipping lines contacted by FTW were reluctant to put a figure to the rate rises that South African shippers can expect on various routes, there was consensus that the levels would not be in line with global trends.
Shipping consultants Drewry have predicted an average 16% global increase on all routes this year with the upward trend continuing into 2018 (FTW August 4, 2017). In a recent webinar they made it clear that it was a question of sustainability – a sentiment shared by DAL Agency SA managing director David McCallum.
“In order to provide a reliable and dependable service to the trades, reasonable freight rates must be generated by all carriers,” he told FTW. “Today’s rates in the Europe-South Africa trade are not sustainable and substantial double digit increases are necessary.”
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