Rate increases support further investment

With the returns in the global reefer trade having reached an unsustainably low level, the French carrier CMA CGM has followed the trend kicked off by Maersk Line last year, and increased its rates. The reason, the line’s MD in SA Arnaud Thibault told FTW, was because, in recent years, reefer rates have steadily deteriorated to the point of questioning future investments. “In order to maintain our quality of service,” he added, “an increase became essential.” The waters were tested early in the last quarter of 2012, when CMA CGM announced a general rates increase (GRI) from the East Coast of South America (Ecsa). “In the weeks that followed,” said Thibault, “the implementation of this GRI was generalised to all the group’s trades. “Although we had to mitigate the initially announced quantum according to trades, the GRI has been a success, especially on volumes from Latin America.” This allowed the line to catch up with the rates erosion and consider investing in new and more powerful tools – like efficient reefer machines and better insulated boxes. “We shall now maintain these rate levels at their present levels as we are facing increasingly aggressive competition,” Thibault said. Looking exclusively at the SA market, he told FTW that CMA CGM had managed to put in place new services in response to specific demands from clients. “Indeed,” he said, “for Asian and US destinations we currently have two departures per week ex Durban and Port Elizabeth (Shaka and Seas Lines) and one departure per week ex Cape Town (Afex/Wax 2). For Middle East destinations we have one departure per week ex Cape Town and Port Elizabeth (Midas Line). We also have one departure per week ex Durban and Cape Town to West Africa (Asaf and Afex Lines) and another one departure per week from South America to Durban.” Thibault highlighted the latest development, which is the new weekly departure ex Maputo to Asia (direct) and Middle East. “This,” he added, “providing a fast transit time and dedicated to SA fruit exporters based in the Limpopo/ Mpumalanga areas. INSERT & CAPTION CMA CGM has managed to put in place new services in response to specific demands from clients. – Arnaud Thibault