Imports from East continue to dominate.

Despite the tighter economic
climate, groupage operator
CFR Freight recorded positive
results last year and the signs
for this year are looking more
promising, says managing
director Martin Keck.
“During the recession
we had to turn around more
cargo to achieve the same
results – but while many of our
customers saw a decline of up
to 30%, our volumes remained
relatively stable,” he told FTW.
The industry is however not
without its challenges, not
least of these the ongoing issue
of ‘kickbacks’ particularly on
the routes from China
and India.
“The growing number of
incentives as well as other
surcharges from the East,
particularly China, is a
concern,” says Keck. “And the
issue will deteriorate should
our local currency lose value
against the US dollar.”
Of equal concern is the fact
that groupage operators across
the globe seem to be struggling
to pass on third party rate
increases – whether these
are freight or local landside
costs. “In particular, operators
who apply mixed calculations
because they carry cargo for
direct customers as well as for
freight forwarders are willing
to apply extremely low rates.
“As CFR Freight we have
always stuck to our strict
neutrality. When the market
considers price only it is
always at the risk of trading
this neutrality,” says director,
Peter Schmidt-Löffler.
And as the company looks
forward with optimism to the
year ahead, imports from the
East – and China in particular
– continue to dominate.
“The UK has bounced
back after a rather depressed
year, as has Japan,” says
Schmidt-Loffler. “Both those
economies seem to have been
most severely affected by the
recession and it’s good to see
them picking up again.”
CFR has for some time
offered global coverage for
its sea freight customers. “We
will however continue to look
at putting new direct services
in place whenever viable,” said
Schmidt-Loffler.
The company has also
focused strongly on growing
its airfreight product over the
past year and is seeing very
promising developments on
that score. “Imports from the
USA, Europe and China have
grown significantly while
exports are picking up nicely
as well.”
In a move that adds value
for its sea freight customer
base, the company has opened
its own pack/unpack depot in
Cape Town – Zacpak Cape
Town Depot.