SA lines evaluating SA capacity requirements

While there are definite
indications that global
vessel capacity is set to be
in an oversupply position
by year-end – unless the
lines convert to more slow
steaming or lay up more of
their fleets – will that same
position apply to the SA sea
trades?
Pacific International
Line (PIL) agrees with
the comments regarding
capacity and possible
slackening of volumes.
“However from our
perspective there are no
plans to change anything at
this stage,” said Ivan Naik,
MD of PIL South Africa.
“We will continue as we
are.”
In those trades
where Hamburg Süd has
deployed extra peak-season
capacity, and a drop in
demand is observed, that
capacity will be removed
accordingly, according to
Sam Moffitt, GM in SA.
“Any line looking at
its bottom line should be
doing the same,” he told
FTW.
Given high fuel costs,
Moffitt reckoned it was
simply not economical
to operate ships at lower
utilisations.
“While fast and reliable
services such as ours are
preferred,” he added, “no
line will achieve utilisations
higher than the overall
market on a consistent
basis.”
A Far East line
executive suggested that
“conservative” is the way
to be looking towards yearend.
“I take the viewpoint
that any newcomers who
want to come into the trade
are welcome,” he said.
“We wish them all the
best, because the rates are
already on the fade – with
westbound rates below
US$1 000/TEU.
“We’re already
overtonnaged, and I see big
changes in buying patterns
– with shippers spreading
cargo loads over longer
periods. A definite change
in inventory patterns.”
For 2011 he certainly
envisages growth – “but
much slower than before”.
Meanwhile, Safmarine’s
SA trade director Alex de
Bruyn said: “The quick
answer is that with regard
to SA/Europe and SA/
North America consortium
services, there are no
immediate changes to
capacity plans in 2011.
Indeed, neither for the SA/
Far East and SA/West &
Central Asia (Middle East
and Indian Sub-Continent)
strings.
“However the lines
continue to monitor demand
and will respond to both
decreases and increases as
deemed appropriate.”
Glenn Delve, marketing
director for MSC, predicted
no changes due in the line’s
SA global schedules.
“We never had to lay
up any vessels during the
economic crash, so we’re
unlikely to do so now,” he
told FTW.
Indeed, Delve expected
exactly the opposite. “There
is continuous development
planned from MSC globally
for next year,” he said.