Grindrod adds seafreight option

The strength of the rand against the US dollar combined with international weather upheavals and other emergencies played a key role in the fates of shippers of SA perishable products this past year. “The season was reasonable, considering that the rand was still strong against the dollar. The rate of exchange is not conducive to exports,” said Mike Froy, divisional CEO for Grindrod Perishable Cargo Agents. “There have been challenges,” said Froy. We had the volcanic ash which closed airports for a week in 2010, and particularly bad weather in Europe also caused airports to close for a week late last year. This year there has been a ban on meat exports due to an outbreak of ‘foot and mouth’ disease which lasted six weeks. The Japanese tsunami had an impact on lobster exports – and Japan is a key market.” Grindrod PCA, which specialises in the import and export of perishable products primarily by air, nonetheless looked beyond the impact of the year’s natural disasters and branched out to offer a key new service. “GPCA entered the seafreight market in June 2010,” said Froy. For the year ahead, perishables shippers cannot predict natural calamities, but are anticipating the effect of the exchange rate. “It is difficult to predict how the 2011 season will ‘pan out’. Recessionary conditions prevail in Europe, which is leading to reduced orders. The rand remains strong, which is a big factor regarding exports,” he said. “It sometimes makes sense to rather supply locally if the returns (on exports) are not great,” Froy said.