Shipping industry enters sixth year of crisis

As the global shipping industry enters what Deutsche Afrika Linien managing director Eberhart von Rantzau describes as its sixth year of crisis, he singles out the South African trade as the only one that remains comparatively stable. Writing in the company’s monthly newsletter, Von Rantzau says that although cargo volumes are constantly rising, there is still a drastic oversupply of tonnage which means that the charter rates barely cover the operating costs. “Apart from the South Africa trade – where with our partners we are replacing the fleet of eight 45 00-TEU ships with eight modern 6700-TEU vessels – we are also affected by the crisis,” he said. The company's UAFL service is one of those affected. “Following its initial success, UAFL is now confronted with cutthroat competition in the Indian Ocean,” he said. “This because global liner companies are increasingly focusing on niche trades. We will have to convince our customers of our long-term expertise in Africa and offer alternatives.”