Mixed reaction greets launch of BEE line

ALAN PEAT THE LAUNCH by black-owned SA Liner Container Services of a monthly option on the Europe-SA trade has raised mixed reaction in the shipping market place. With the vessel size at 750-TEU capacity and building from a monthly to a 10-day frequency, this will not put major extra tonnage into the market and is not a volumetric challenge, according to one source. “Given charter rates being where they are, and the cost of running a service, I wish them well,” said the source. However, the other immediate reaction related to the black economic empowerment element. It could be a threat to the market just because of this BEE involvement, added another shipping executive. “Any government influence does help to ensure the livelihood of the company.” He also felt that - given that everyone in the SA freight industry was trying to get good marks on their BEE scoreboard - there would be a natural urge for shippers to look at the advantages of using a BEE service provider. And, the executive added, there is the double whammy of it being a newcomer to the trade - and having to offer attractive freight rates to encourage custom. “It’s a threat in that it will affect the stability of rates,” he said. “The market may not want to support them, but they could certainly use attractive rates as a bargaining weapon in their dealings with other lines on the trade.” Both these factors are “interesting developments” in the minds of the freight forwarding community, according to Philip Womersley, chairman of Safcor Panalpina. “While the frequency would be important,” he said, “I think the industry would be interested.” First sailing of the line’s new vessel, the Encounter, is scheduled for May 17 sailing on a Rotterdam, Felixstowe, Bremerhaven, Antwerp, Cape Town, Port Elizabeth port rotation.