Groupage pie shrinks
RAY SMUTS
CAPE Town’s groupage business is no mere stroll through a container stack, but NVOCC Freight Services’ Lynn Quinn is confident the year ahead will see further growth - opposition notwithstanding.
“Competition remains tough and this is also to a certain extent a shrinking market based on the freight rates. You have low freight rates and your client base tends to send down what we would consider a base load out of a full container, and all credit to them, because it probably makes economic sense to do so.
“Take a 12-foot container. There is less handling, less possibility of damage and fewer costs, so you’ve got that additional competition as well.”
Late last year Quinn made clear the company was intent on scoring a larger slice of the import pie, and her focus remains there.
“We are looking at imports from India and possibly becoming involved with food aid to Africa through our agent in the United States.”
The company’s thrust into Africa is on track and gaining momentum with twice-monthly shipments to Lagos, Nigeria, and a weekly service to Mombasa and Tanzania.
Sadly for Cape Town, Durban is the focal point for both services. Quinn makes clear that the Mother City is not yet able to come up with the necessary volumes to make for a viable operation into Africa. “We are doing a lot of wine exports through Cape Town, though.”
Currently the Cape Town, Durban and Johannesburg branches contribute around one-third to the company’s bottom line, but Quinn reckons Natal and Gauteng should grow more rapidly the year ahead due to more substantial volumes in the marketplace.
