Global buying power translates into competitive rates

As more and more
importers look East
for their supplies, so
do the opportunities
continue to present, says Ziegler
ZA CEO Sean Moore – and
this despite a tighter than
anticipated 2015.
An important element of the
company’s value proposition for
Far East shippers is the Ziegler
Group’s significant footprint
in the region – eleven offices in
China alone, with headquarters
in Hong Kong.
Equally important when it
comes to offering a competitive
service are economies of scale
– and this is where Ziegler has
the edge, in Moore’s view.
“Due to below-average
Chinese manufacturing
numbers, there is free capacity
on the trade,” says Moore,
“and that has made for very
competitive market conditions.
But thanks to Ziegler’s global
business – mainly Far East
outbound – combined with its
buying power, its many retail
and industrial customers,
and initiatives like its SBU
programme, economies of
scale translate into highly
competitive rates, which is why
Ziegler is expanding even in a
depressed market.”
There are however challenges
on a trade that lacks the
maturity of the likes of Europe,
for example.
Shippers face the
problem of volatile
freight rates with
shipping lines trying
to implement general
rate increases (GRIs)
and peak season
surcharges as their
margins are placed
under more and
more pressure –
but when market conditions
don’t support them. “While as
an industry we probably all
agree that current rate levels
are not sustainable, we have a
responsibility to our customers
to ensure that they are
achieving the best, irrespective
of our view. It is true that this
over-capacity is not limited
to freight and forwarding –
manufacturers and traders
are in the same real
position.”
For the year ahead Moore
expects more of the same
– with the
company’s
global muscle
providing an
advantage
in a highly
competitive
market.
INSERT & CAPTION
The Ziegler Group
has eleven offices in
China alone.
– Sean Moore