MBG developments ‘no surprise’

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.