Guaranteed space in LCL market a strong selling point

As the seafreight routes

to Asia – one of South

Africa’s biggest global

trade partners – remain

constrained in terms of

available space and as

freight rates continue to

rise, non-vessel operating

common carriers’

(NVOCCs) guaranteed

less than container load

(LCL) space is becoming

more attractive to

shippers.

“We must remain agile

to ensure that as a service

provider we are geared

to assist in all areas of

the market – and one

of our main challenges

is to tailor our service

offerings to help specific

clients optimise their

own services to their

clients,” said Nicholas von

Flemming, CFR Freight

key accounts sales and

servicing consultant.

As part of this, he said

it was important for a consolidator

to ensure it continued to offer its

clients the full range of export

services, despite space, rate and

other constraints.

“Equally, the viability of

smaller direct trades in the face

of renewed full container load

(FCL) aggression by

carriers needs

constant revisiting,”

Von Flemming

pointed out.

He told

FTW that

a neutral

NVOCC

could

play a

key role

in helping

to keep clients’

costs down.

“We continually

develop a series

of strategies

in this regard

which we

communicate to our

customers,” said Von Flemming,

highlighting that LCL was geared

for underf low and overf low loads

which were a natural consequence

of intra-regional trade.

“It is therefore

critical that we, as an

NVOCC, continue to

invest in as many direct

sailings to replicate the

FCL offering the consignee

demands,” he said.

“As we are considered an

extension of their

business by

many of our

clients, we

are privy to

information

and

business

sensitivities

that allow us to

tailor services,

direct sailings

and products to

their needs,” Von

Flemming said.