Improved box utilisation fosters growth

Consistency and a commitment to getting the basics right are the critical keys to success in the consolidations field, says Raymond Cutts, sales and marketing director at International Liner Agencies. “By demonstrating our commitment to delivering added value to our clients and through dedicated international sales visits from our network partners we have been able to drive our business forward,” he says. “We have worked very hard to improve our box utilisation – and this has led to consistent volume and has allowed the growth and development of marginal trade lanes, along with those where we are considered market leaders,” he adds. Cutts says it is crucial in the consolidations business for operators to maintain margins and ensure that the pricing is right. While it is difficult to tell what the future holds, Cutts says that competing against global organisations whose strategy appears to be “Buy market share on a global scale” at the expense of adding any value to the local market has made their task that more difficult. “South Africa is considered a niche market and global agreements between freight forwarders and NVOCCs are often concluded at the expense of local market conditions and value-added services unique to South Africa.” Cutts believes that adding value is critical. “If a business operates on low pricing structures then you need to remove something from your service levels to maintain your margins and it is something that we are not prepared to do,” he says.