After what everyone in the industry has described euphemistically as a ‘difficult’ year, 2013 is shaping up to be a lot better. “Everyone took a hiding last year,” says Warren Jayes of Leo Shipping, and that includes forwarders and shippers worldwide. Not only did the industry have to contend with diminishing volumes but costs spiralled upwards with some shipping lines, for example, ramping up demurrage charges to bolster their bottom lines. But Jayes believes that 2013 is looking a lot more promising – and he is aiming for a double daily frequency on the Johannesburg- Zimbabwe route where the company currently operates a daily service, running 8-tonners, triaxles and links. “If we have a 6m container we can top up with groupage cargo so we are very adaptable,” said Jayes. “We used to commit to getting cargo out of our warehouse within a week of receipt. But for the past six months we’ve been committing to two days provided duties and documentation are in order.” Jayes says consolidation volumes have grown dramatically. “People who were importing full truck loads and can’t afford to do so any longer have switched to consols. “We do a lot of raw materials for the cigarette industry, for example, and we’re finding that instead of a container load of cigarette paper we’ll now bring in two or three pallets at a time. And while there’s more money to be made in groupage cargo – it’s also a lot more costintensive in terms of handling and security.” Clearly the company’s business philosophy is working. When Jayes took over Leo Shipping five years ago it comprised a staff of five people. The staff complement now stands at 17.
Leo aims at double daily frequency to Zim
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