Rates can't go any lower, say existing F-E contenders

MAERSK'S PLANNED weekly container service on the Far East - SA route is unlikely to create any disruption in current operations among established services, nor will it materially affect the current rates on the Far East service, say leading shipping lines operating on the route.
P&O Nedlloyd marketing director Richard Burmeister, based in Cape Town, is unperturbed by the new entry into the field.
I don't see it as starting a huge bunfight to secure more cargo, he says. It must be remembered that Maersk, as a member of Good Hope Express in the past, has a solid allocation of cargo, and they do service a number of Indian ocean ports as well as South Africa, which means they will carry on that trade in addition to sailing to Singapore.
As far as rates are concerned, these can't go any lower on the Far East routes. If they did, whoever would be offering them would be destined to go out of business.
P&O Nedlloyd's East African trade manager Alan Naidoo in Durban is confident there is enough cargo ' to go around'.
Time and good service are what will count in the long run, he says. We will just have to wait and see.
Taking a diplomatic view of the new entry, Status Maritime m.d. Ian Wicks, agent for Kien Hung Line, says it's purely up to Maersk to 'take their chances in the field'.
We wish them luck, he said. I don't see them becoming any serious threat to our operation. Many people are of the opinion that trade with the Far East has declined because of the economic conditions, but this is not the case.
It's strictly the Malaysian block of countries which are affected. Our services to mainland China, Japan, Hong Kong and Taiwan are running to order and keeping us busy.
Nantai's David Yang has a different viewpoint.
Imports are suffering and hopefully the slow growth in exports will improve. Maersk is a big company and they must know what they are doing, but there's nothing new in having another line move into your field of service, and we don't regard them as being a serious contender for our business.