‘Look beyond rates when choosing a transport operator’

HIGH operating costs and low margins are in many instances the order of the day in a saturated Cape Town containerised transport sector market, says MSC Logistics and Depots general manager Mervyn Padayachee, The filled-to-capacity market has led to container transport companies slashing rates, “unfortunately the primary criterion” in selecting a transporter, says Padayachee. “Margins are extremely low while their operating costs are high, inevitably resulting in a lack of vehicle maintenance, which is very evident around the port of Cape Town and in the CBD.” Padayachee believes clients should be making their choice of transporters on fundamentally important issues other than cartage rates – like fleet size and condition, maintenance, tyre management, presentability of drivers and, most importantly, goods-in-transit insurance. In terms of insurance, there are various generic types of goods-in-transit cover but he questions whether they adequately cover the client’s needs. Questions that need to be asked include: ● Is limited load cover adequate and is there exclusion on the policy for the carriage of certain containerised named goods that may only apply to a company or client? ● Is the empty container and/or its replacement value included in the GIT policy? “This is significant when you are conveying reefer containers, especially to farms further away from the CBD as the risk becomes greater. “The savings derived from cheaper rates are not worth the risk, especially when one is a small or medium forwarding agent or shipper.” MSC Logistics and Depots has grown significantly in Cape Town since starting with an initial fleet of four truck-tractors and six trailers in 2003, operating from a R60 million, fully walled and paved container depot of approximately 47 0000m2 and a trailer park of around 2 000m2. Its customer base includes SANS Fibres and Daimler Chrysler/Atlantis but ironically, the majority of business emanates from Johannesburg-based clients.