Perishable majors cut the middle man

Container volumes speak for themselves – the greater the volume the greater the price bargaining power. And that’s a key factor behind the establishment of Link Supply Chain Management, which has just welcomed on board impressive stakeholders in Mouton Citrus and Du Toit Investments. Link was established in January by Tru-Cape Fruit Marketing, Ceres Fruit Growers and Two-a-Day Group, and the achievements of the fledgling enterprise are already evident. “The purpose behind Link was really for us to take control of our shipping destiny by cutting out the middleman in order for the benefits to accrue directly to our shareholders,” said Charles Hughes, CEO of Tru- Cape. The company, South Africa’s major exporter of apples and pears, is a major container user and Hughes tells FTW it was becoming increasingly difficult to handle its shipping because it was “really in the hands of a few.” Hence Link taking control of managing the group’s shipping and bookings planning, reduced costs and a closer working relationship with the lines. Link uses a good number of major shipping carriers operating out of South Africa, including Maersk Line, MOL, MSC and PIL, and Kuehne & Nagel for shipping. An advantage for the Tru-Cape Group is entire ownership by its shareholders, namely the growers, so all endeavours undertaken are for their ultimate benefit. Hughes is clearly enthusiastic about results to date. “Link has worked well for us after only ten months.” Evidence of this was already clear during the crippling Transnet ports strike in April when the company was able to deploy its own conventional ships with on-deck container capacity for moving vital export cargo to off-shore destinations via FPT, the country’s major private quayside operator active in all of South Africa’s major ports and also in Maputo, Mozambique. Hughes says it is evident from international retail trade trends that more and more companies are keen to deal/ trade directly with the grower “and the whole principle behind that is to cut costs.” Link Supply Chain Management is headed by well-known fruit logistics expert, Gerhard van Heerden, formerly with the Capespan Group. The company focuses on sea and air transportation, local and overseas inland transportation, terminal operations and clearing and forwarding functions for the products exported by its shareholders, thereby ensuring a cost-effective ‘Link’ between businesses.