SA importers take advantage of weaker dollar

After what has been described as the worst economic downturn since the Great Depression, volumes from the USA are slowly returning to 2008 levels, says Alistair Heald, sales director of World Cargo Services (previously WGS). “The general market consensus for 2010 was for an even stronger focus on the East with more cargo being sourced from that area. The USA, which had been experiencing a severe recession, was finding itself in a situation where the US dollar was depreciating against all major and even emerging currencies such as the rand,” says Heald. “From this background US manufacturers started focusing a lot more on the international market and SA importers have taken advantage of the weaker US dollar. We are now seeing a real increase in volumes returning to 2008 levels and beyond, particularly in high tech and high value products from chemicals to mining equipment.” Along with that US suppliers’ response time to international enquiries has also been addressed and is now treated with more urgency and competitiveness. According to Heald the turning tide was fully realised in September when volumes at World Cargo Services equalled those of 2008. “On groupage, we closed fully utilised 40 containers weekly from Los Angeles, Atlanta, Charleston, Chicago and New Jersey into South Africa. This trend was similarly felt in the FCL imports, which have now surpassed previous volumes.” Heald says while 2010 was intended to be a year for focusing on the East, expansion led to the company being able to handle the increased USA volumes as well. “What is now very evident in the market, is competitiveness, from that between shipping lines to freight forwarders. A recession always brings with it downscaling, cost cutting and re-evaluating every aspect of costs,” he says. “Freight costs have come under the microscope and importers request breakdown quotes prior to most shipments.” According to Heald 2010 has also been a year for developing relationships further. “CaroTrans, our partner of 16 years in the USA, is now also our partner in China and Australia. With roots in the USA, they are a truly global groupage NVOCC operator, serving 140 countries and 240 ports worldwide.” Airfreight imports from the USA have been challenged over the past few months by a lack of space availability on SAA flights, says Heald. “While the reasons given are varied, the feedback given to customers by freight agents has generally been poor. This has highlighted a largely monopolised market and allowed more competition from service-orientated airfreight forwarders also offering alternative airline options. World Cargo’s USA airfreight product has grown substantially in 2010 and we see further growth in 2011.” He says the company’s strength in the USA is best reflected in its numerous receiving stations. This extensive network of experienced international personnel in these CFS stations enables customers to benefit from a reduction in transport costs within North America, improved transit times.