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.