Importers tranship to sidestep cost challenges

TRADITIONALLY World Groupage Services’ customers have been able to move their cargo almost immediately on its direct service between South Africa and the USA. “However, the escalation of fuel surcharges and ocean rates, coupled with the container equipment shortage, has prompted a few of our long-standing clients to request transhipment quotations and factor in a longer lead time,” says sales director, Alistair Heald. WGS, in conjunction with its partner Carotrans International, offers a weekly groupage and full container load (FCL) service into all four major ports in South Africa, based on premium direct carriers. And despite the challenges facing the local importer, it continues to record growth year-on-year on the USA-SA route. “Carotrans is in the region of 35% up on FCLs and 30% on the LCL product worldwide,” says Heald. “This is in spite of the increased fuel and oceanfreight charges on the US route tightening margins and the container and chassis shortages in the USA which have forced us to draw equipment from various states.” The company is currently discharging its Johannesburg consolidated cargo at the Durban harbour and roadhauling it to Gauteng. “We find this method far more reliable than rail as it gives us a day to day and a half turnaround time after the vessels have completed their discharge.”