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Freight & Trading Weekly

Looking beyond traditional powerhouses

06 Dec 2019 - by Liesl Venter
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Shipping faces yet another tough year in 2020 with all markets expected to be challenging. According to Nicholas von Flemming, ocean freight key accounts manager at CFR Freight, this is also true for the traditional powerhouses of Asia such as China and Japan. “They are no longer the exclusive focus of the market. Manufacturers have shown an appetite for diversity to overcome their own challenges, resulting in movement towards newer markets,” he said. Having recognised this new growth CFR, through its World Wide Alliance (WWA), has started running direct less-thancontainerload (LCL) consolidated services from some of the new growth points that include countries like Vietnam, Thailand and Malaysia. “Extra insight is being placed on sourcing and assisting with LCL closer to origin,” he said. According to Von Flemming this is also being seen in China where offices like that in Nanjing were being established by the WWA to streamline the movement of cargo. “This is one of several satellite offices offering extended reach into the Chinese hinterland.” He said with the whole logistics market facing disruption in many traditional facets, being as close to origin as possible was increasingly important. According to Von Flemming the cost variables, along with the increase in box rates and resultant surcharges, would inevitably make LCL a key part of the supply chain strategy for any company working in Asia. Stephen Bishop, CFR airfreight director, said the company was looking at giving clients more options into Johannesburg as well as direct options into Cape Town

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