The cessation of MBG
Shipping’s new South
Africa/Europe/West Africa
reefer service has come as
no surprise to the Western
Cape fruit export sector.
This after the on-off
voyage of the single charter
vessel, Alioth, from Cape
Town on January 20.
A British maritime report
on February 22 not only
confirmed FTW’s original
information, that the vessel
had sailed on December
20 with only one full
container and 25 empties,
but suggested the vessel had
been returned to her
German owner.
While the fruit industry
was prepared to back a
new service, it wanted proof
of sustainability.
This did not materialise,
and despite assurances,
founder and MD Ian Wicks
was not able to source the
necessary equipment – 350
FEUs required a week to
ensure a fully laden vessel,
hence several delays in the
first weekly sailing.
Deon Joubert, GM
operations for Capespan
exports, says “any exporter
worth his salt” would
have welcomed “another
platform” (as did Capespan),
but four reasons essentially
mitigated against support for
the fledgling line.
“Firstly, the contract
proffered by MBG Shipping
held us as contractors
responsible to pay (MBG)
regardless of how the
service performed.”
Capespan was also
seeking an assurance that
six-odd ships would be
engaged to provide a string
for a competitive weekly
service. But MBG was
unable to satisfy on this
count, nor could Capespan
find any evidence the line
had sufficient containers to
run the service.
However, the biggest
problem for Joubert was
that while he personally has
no objection to a “flat rate
structure”, that offered by
MBG was uncompetitive
overall compared with the
other lines.
A final concern was no
guarantee that someone
might not try to attach/
arrest Alioth’s bunkers or
the vessel itself to recoup
monies owing creditors
from previous Wicks
ventures, such as SA
Independent Liner Service
(Sails), liquidated in
December 2008.
“We exporters all agreed
we would like to have
another service to allow for
more flexibility and security
but if you (as a line) want
to be part of a contract, you
have to be a part of my life
every Friday and if so, we
will give you the support.”
Capespan remains South
Africa’s biggest exporter
with around 20% of
overall volumes to Europe/
Northwest Continent and
the UK, shipping some
13 500 FEUs a year.
Six lines are contracted
to Capespan, Maersk Line
and MSC each holding about
20% of volumes, Safmarine
about 16.3%, MOL 15%
ad DAL and Seatrade
10% each, equating to an
overall 45 000 conventional
pallets a year.
Joubert said had Capespan
decided to support MBG
Shipping, it would have
supplied the line with
roughly 25 to 30 FEUs a
week and a 1 000-container
contract to start with.
• Wicks chose not to
respond to questions by
FTW, uppermost whether
this means the end
of the line.
MBG developments ‘no surprise’
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