Lines pin hopes on reefer business

The cargo sea lane between SA and the UK/NWC is anything but as crowded as it was this time last year, and – although considered “relatively stable” by certain commentators – has taken a knock since the start of the global financial crisis. All dry cargo in-and-out of SA has hit a downturn, but the motor vehicle manufacturing and auto spare parts industries are special contributors. Like airfreight, they are main space takers for the shipping lines, and the motor industry’s current infection is catching. The fact that the SA fruit export season is now under way is some consolation, with perishable exports being keenly fought for by the reefer container lines, as they try to supplement the diminishing volumes of other cargoes – at least on the northbound leg of the sea trade. David Williams, MD of Maersk Line, was rather loathe to comment on trends when FTW talked to him earlier in January. “It’s difficult at this early stage of the year to assess market movement,” he said – while at the same time admitting to belt-tightening in the line’s SA-Europe activities. “Dry cargo is affected both in and out,” he confessed, “and the auto industry – a main player on both north- and south-bound legs – obviously has problems.” The SA Europe Container Service (Saecs) multi-line consortium, in which Maersk has big muscle, still has its two strings on the UK/NWC-SA trade. But said Williams, the second string is now running a fortnightly service to match capacity and demand. “To provide sufficient reefer space during the perishable season,” Williams added, “extra vessels might be employed. “We will be in discussions with the other lines about this, but we’ll take action as required by our customers.” Ron Frick, MD of DAL Agencies – which represents Deutsche Afrika Linien in this country – told FTW that the Europe trade was more stable than that of the Far East at the moment. But it’s still a diminishing market. “I expect the market to contract,” he said, “especially as a lot of business is with the motor industry.